Daily ETF Roundup: Sour Start To Earnings Season

by on October 10, 2012 | ETFs Mentioned:

Investors kicked off today’s trading session with profiting taking, which remained steady throughout the entire day leaving the opening ceremony of earnings season up to the bears. Alcoa was the culprit for today’s sell-off after the aluminum juggernaut disappointed investors; the company actually ended up topping profit estimates, but selling pressures were quick to follow after it revised its forecast lower. Chevron was another big name loser on the day after the company cited falling oil prices and reduced production [see Free Seven Simple & Cheap All-ETF Portfolios].

Global Market Overview: Sour Start To Earnings Season 

Selling pressures in shares of Alcoa and Chevron sank the Dow ETF (DIA) 0.97% lower on the day, while a positive performance from Apple helped the Nasdaq, although QQQ still shed 0.50%. Chinese markets were the biggest winner on the day despite news of slowing automobile sales.

Bond ETF Roundup 

“Risk off” trading spilled over into the bond market; “junk bonds” fell alongside major equity indexes while safe havens like investment grade corporate and U.S. Treasury bonds marched higher throughout the day as investors scaled back on risk exposure.

Commodity ETF Roundup

Less-than-stellar corporate earnings weighted heavily on commodity prices for the entire session. Disappointing outlook commentary from Alcoa and Chevron inpsired profit taking in industrial metals and crude oil futures respectively. To top it off, the U.S. dollar gained a bit of momentum in the currency market, which only added to the headwinds.

ETF Chart Of The Day #1: GDX

The Van Eck market Vectors TR Gold Miners (GDX) was one of the best performers on the day, gaining 0.77% during an otherwise sour session on Wall Street. This ETF posted a surprisingly positive performance considering that gold futures prices traded sideways for most of the session. Although GDX gave up much of its gains from the morning in the afternoon, shares still managed to close in green territory as the closing bell rang [see our GLD-Free Gold Bug ETFdb Portfolio].

ETF Chart Of The Day #2: XLE

The State Street Energy Select Sector SPDR (XLE) was one of the worst performers, shedding 1.87% on the day. Selling pressures in shares of Chevron after the company missed earnings estimates dragged this ETF lower right from the opening bell; Chevron is the second largest holding in XLE, and as such, it’s dismal performance on the day had a significant impact on the fund [see also The Most Liquid ETF For Every Commodity].

ETF Fun Fact Of The Day

The best performing regional portfolio is our Euro Free Europe ETFdb Model Portfolio in the trailing period 13-week period; this strategy is up 8.64%.

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Disclosure: No positions at time of writing.