Markets were in for a wild ride during this holiday-shortened week, ending in red territory as a slew of sour economic data spurred a broad market sell off across the globe. Right on the heels of yesterday’s major central bank decision announcements, investors were met with even more unsettling reports showing signs of a struggling U.S. labor market. As markets continue to be hypersensitive to the latest news concerning the health of the global economy, stocks failed to climb into positive territory: the Dow Jones Industrial Average tumbled 1.1%, while the S&P shed 1.1%, and Nasdaq landed at the bottom of the barrel with a loss of 1.5% [see also 10 Surprising ETF Stats From Mid Year ETF Data].
Today’s Labor Department monthly report came in much below economists’ projections, showing an increase of 80,000 for nonfarm payroll growth as opposed to the expected 100,000 increase. The lackluster report sent investors flocking to their favorite safe havens, giving the U.S. dollar it largest boost against the euro in over two years. Consequently, oil prices fell for the second day in a row as the strong greenback put pressure on the commodity [see also July Edition Of ETF Edge Now Available].
The Invesco PowerShares DB USD Index Bullish ETF (UUP) was one of the best performers, gaining 0.66% on the day. With sour U.S. jobs data shaking up investor confidence, the U.S. dollar rose to new highs today as many sought out this safe haven investment. Alongside the greenback’s rally, this ETF gapped significantly higher at open, only to rise even higher throughout the day. UUP closed just shy of its high of $22.97 a share [see our King Dollar ETFdb Portfolio].
The US Commodity Funds United States Natural Gas Fund (UNG) was one of the worst performers, shedding 5.33% on the day. After the commodity’s recent rally, natural gas futures finally eased off as weather reports indicated a reprieve from the U.S.’s severe heatwaves in the near future [see also Inside Natural Gas and UNG's Wild Q2].
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Disclosure: No positions at time of writing.