Wall Street started off the week on a sour note as investors remained cautious ahead of a slew of economic news slated for this week, most notably the Federal Reserve’s policy-setting committee statement on Wednesday as well as Friday’s monthly jobs report. In corporate news, biotech company Elan announced it that it will be acquired by U.S. based healthcare company Perrigo (PRGO). Also announcing an acquisition, Saks (SKS) agreed to be bought by Canada’s Hudson Bay. Meanwhile, Omnicom (OMC) and Publicis merged over the weekend to create the world’s largest advertising holding company. In economic news, pending home sales declined 0.4% in June [see The Cheapest ETF for Every Investment Objective].
Ahead of this week’s slew of economic reports, all three major U.S. equity indexes fell to close in positive territory. The Dow Jones Industrial Average ETF (DIA, A-) fell 0.15% as its underlying index traded in a narrow 75-point range. The tech-heavy Nasdaq ETF (QQQ, B+) slipped 0.24%, while the S&P 500 ETF (SPY, A) shed 0.31%.
In Europe, markets closed flat; the Stoxx Europe 600 rose less than 0.1%. Meanwhile, Japan’s Nikkei Stock Average tumbled 3.3% on a stronger yen, and China’s Shanghai Composite shed 1.7% after the National Audit Office ordered a review of overall government debt.
Bond ETF Roundup
U.S. Treasuries fell today ahead of the Federal Reserve’s policy-setting committee statement due on Wednesday. Yields on 10-year notes rose 2.5 basis points, while 30-year bonds and 5-year note yields rose 4 and 0.5 basis points, respectively [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures traded lower today, settling below $105 a barrel, as growing demand concerns in China put pressure on the commodity. In other energy trading, natural gas and gasoline futures also traded lower. Meanwhile, gold futures rose 0.5% to settle at $1,328.40 a troy ounce.
ETF Chart Of The Day #1: (BJK)
The Market Vectors Gaming ETF (BJK, B) was one of the worst performers today, shedding 0.79% during the session. After Wynn Resorts (WYNN) missed second quarter earnings expectations, this ETF gapped significantly lower at the open. BJK eventually settled at $41.57 a share [see Consumer Centric ETFdb Portfolio].
ETF Chart Of The Day #2: (XLE)
The Energy Select Sector SPDR ETF (XLE, A) also posted a weak performance, shedding 0.93% during the session. Energy shares were among today’s biggest laggards, forcing this ETF to gap slightly lower at the open. XLE fell lower during the morning hours, then slid sideways, eventually settling at $82.31 a share [see Energy Bull ETFdb Portfolio].
ETF Fun Fact Of The Day
The best-performing regional strategy year-to-date has been the Global Titans ETFdb Portfolio which has gained 7.58%.
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Disclosure: No positions at time of writing.