Strong corporate earnings couldn’t help U.S. equities today, as the seemingly never-ending Euro Zone drama took center stage once again. For the first time in four sessions, Spain’s debt dilemma tripped stocks, as new concerns emerged about the possibility of the country being forced into a full-fledged sovereign bailout to ease Spain’s debt burdens. Despite several companies reporting better than expected earnings, U.S. equities fell victim to the looming global economic worries: the Dow Jones Industrial Average dropped 0.9%, while the S&P slipped 1.0% and Nasdaq tumbled 1.4% [see also Seven Simple & Cheap ETF Model Portfolio].
On the corporate earnings front, bellwether General Electric (GE) beat second quarter expectations, though revenues slightly missed the mark. Internet giant Google’s (GOOG) revenues also fell short, but they too reported better than expected earnings. Across the Atlantic, Germany’s producer price index cam in lower than expected at 1.6%, versus the previous reported 2.1%. Canada reported a drop in consumer prices from the last recording, coming in at 1.5% [see ETF Technical Trading FAQ].
The Barclays iPath S&P 500 VIX Short-Term Futures ETN (VXX) was one of the best performers today, gaining an incredible 5.18% during the session. With Euro Zone tensions back in the forefront, market uncertainty heightened, forcing this ETF gap higher at the open. VXX surged higher throughout the day, settling just bellow its high of $13.34 a share [see also Low Volatility ETFdb Portfolio].
The Invesco PowerShares’ DB Base Metals Fund (DBB) was one of the worst performers, shedding 2.77% on the day. Copper futures plummeted today as concerns over China’s demand forced prices lower. In response, this ETF gapped significantly lower at the open, only to inch downward throughout the day [see also The One Chart Every Commodity Trader Must See].
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Disclosure: No positions at time of writing.