Daily ETF Roundup: U.S. Jobs Undercut By Greece Concerns

by on October 5, 2012 | ETFs Mentioned:

Once again markets took their cue from today’s Euro Zone headlines, while positive U.S. data was quickly brushed aside. Fueling an early morning rally, the U.S. Department of Labor reported that the nation’s unemployment rate fell to 7.8%, the lowest level since January of 2009. Of course this comes right after Wednesday’s first round of presidential debates, where many believed Romney scored a clear victory, and today’s jobs data may shift some voters who are on the fence as to which candidate can best fix the nation’s ailing economy. But like most things on Wall Street, the drop in unemployment quickly became old news after a European Central Bank official expressed his uncertainty over whether or not Greece would receive an aid payment next month [see Free Report: Seven Simple & Cheap All-ETF Model Portfolios]. 

Global Market Overview: U.S. Jobs Undercut By Greece Concerns 

After an earlier rally driven by the better-than-expected monthly government jobs report, U.S. equities fell flat on continuing Euro Zone fear. The Dow Jones Industrial Average (DIA) was the only index that managed to eke out a small gain on the day. Nasdaq (QQQ) and the S&P 500 (SPY), however, slipped into red territory. European markets were broadly higher on the heels of U.S. equities’ strong gains on Thursday. Meanwhile, Asian equities also rose on the back of U.S. gains; Japan’s Nikkei Stock Average ticked 0.4% higher after the Bank Of Japan left rates and its bond-buying plan unchanged.

Bond ETF Roundup 

Following today’s U.S. jobs report, Treasuries declined, erasing its two-week rally and pushing yields to their highest in roughly two weeks. Despite today’s sell-off however, many have emphasized that it is unlikely that any one data point – such as today’s drop in unemployment – is unlikely to convince the Fed from abandoning their ongoing bond-purchasing program. 

Commodity ETF Roundup

Besides livestock futures, commodities were mostly lower across the board today. Crude oil fell roughly 2% following today’s job reports as investors became concerned that the labor market is not growing fast enough to significantly boost U.S. demand for fuel. In the precious metals market, both silver and gold traded lower. 

ETF Chart Of The Day #1: JO

The Barclays iPath Dow Jones-UBS Coffee ETN (JO) was one of the worst performers today, shedding a whopping 4.28% during the session. During today’s broad market slide in commodities, coffee futures slumped, forcing this ETF to tumble throughout the day. In the last hours of trading, JO slid sideways to close just above its low of $39.31 a share [see also Which Coffee ETF Is Right For You? JO vs. CAFE].

ETF Chart Of The Day #2: GREK

The Global X FTSE Greece 20 ETF (GREK) was one of the best performers today, gaining an incredible 7.58% during the session. While European equities finished on a strong note, this ETF gapped significantly higher at the open, only to slide sideways for the remainder of the day. And despite today’s Greek bailout aid rumors, GREK managed to close at $16.89 a share [see also ETFs To Play 9 Markets In Limbo]. 

ETF Fun Fact Of The Day

Only two ETFs offer indirect exposure to Jordan (country for which there is no specific ETF for) with the MENA Frontier Countries Portfolio (PMNA)  making the biggest allocation towards it of about 8.26%.

Follow me on Twitter @DPylypczak

[For more ETF analysis, make sure to sign up for our free ETF newsletter or try a free seven day trial to ETFdb Pro]

Disclosure: No positions at time of writing.