Bargain shoppers were hesitant to return on Monday morning even after last week’s broad decline on Wall Street. Major stock indexes kicked off the day on a positive note as election results in Spain over the weekend resonated well with investors, while better-than-expected earnings from construction-juggernaut Caterpillar also helped to inspire optimism. Profit taking pressures remained steady throughout the day as mixed earnings results from last week continued to weigh down on investors’ confidence, although key equity benchmarks managed to claw their way into positive territory as the closing bell rang [see also Free 7 Simple & Cheap All-ETF Portfolios].
The tech-sector bounced back today as bulls picked up shares of Apple and Google “on sale” following their dismal performance last week. Mixed trading in other corners of the market left major indexes flat; the Nasdaq-focused QQQ led the way higher with a gain of 0.52% on the day, while the Dow Jones Industrial Average fund DIA turned in a small loss. European markets enjoyed a positive start to the week as election results in Spain revived bailout hopes for the nation. Asian indexes also traded higher on anticipation that the Bank of Japan would soon roll out a “beefier” stimulus package [see also ETF Insider: Buy On This Dip With Caution].
Bond ETF Roundup
Despite broad profit taking pressures across the stock market at home, U.S. Treasuries failed to take on safe haven appeal and ultimately finished the day in red territory. Last minute “risk on” buying on Wall Street spilled over into the fixed income market, propelling “junk bonds” higher.
Commodity ETF Roundup
With the U.S. dollar ending the session flat, commodity prices largely took cues from the equity market today, finishing the day all over the place. Gold managed to regain some ground following last week’s sell-off in the precious metal, while the energy sector was hit hard by selling pressures.
ETF Chart Of The Day #1: FXI
The iShares FTSE China 25 Index Fund (FXI) was one of the best performers, gaining 1.45% on the day. Chinese stocks traded higher as the nation’s leaders announced their commitment to drawing up more ambitious economic reform proposals, shedding hope on the nation’s economy which has recently shown signs of “cooling off”. Although FXI ended in green territory, this ETF actually closed below its opening price for the day as profit taking pressures knocked it down just shy of the $37.70 level [see our Asia-Centric ETFdb Portfolio].
ETF Chart Of The Day #2: UNG
The United States Natural Gas Fund (UNG) was one of the worst performers, shedding 3.81% on the day. Speculative trading heavily weighted down on natural gas prices as policymakers continue to debate on whether the Obama administration should allow natural gas exports. UNG got off to a weak start and extended losses throughout the entire day, settling at $22.21 a share as the closing bell rang [see also 25 Ways To Invest In Natural Gas].
ETF Fun Fact Of The Day
The new 8% Yield ETFdb Portfolio is up 5.68% in the trailing 13-week period; this strategy is designed for income-hungry investors looking to overweight exposure to high-yielding stocks and bonds.
Disclosure: No positions at time of writing.