U.S. equities snapped their multi-day winning streak today, as investors digested a mixed bag of economic and earnings reports. Beverage giant Coca-Cola (KO) reported weaker-than-expected sales, while Goldman Sachs (GS) posted earnings per share of $3.70, well past the $2.82 estimate. Johnson & Johnson (JNJ) also posted better-than-expected earnings. In economic news, the consumer-price index for June rose slightly more than expected and June industrial production also saw an increase. The National Association of Homebuilders’ housing market index also beat analyst expectations. Meanwhile, investors remained cautious ahead of Fed Chairman Ben Bernanke’s semiannual testimony on monetary policy to Congress on Wednesday and Thursday [see The Cheapest ETF for Every Investment Objective].
Following a slew of mixed earnings reports and economic data, all three major U.S. equity indexes fell to close in negative territory. The S&P 500 ETF (SPY, A) traded 0.37% lower, while the tech-heavy Nasdaq ETF (QQQ, B+) fell 0.11% – both the S&P 500 and Nasdaq snapped their 8-day win streak. The Dow Jones Industrial Average ETF (DIA, A-) slipped 0.22%.
In Europe, markets were broadly lower following a report that showed a surprise decline in German economic sentiment; the Stoxx Europe 600 shed 0.7%. Meanwhile, China’s Shanghai Composite rose 0.3%, and Japan’s Nikkei Stock Average rose 0.6% to a seven-week high.
Bond ETF Roundup
U.S. Treasuries traded higher today ahead of Bernanke’s testimony. Yields on 10-year notes fell less than 2 basis points, while 30-year bonds and 5-year note yields both fell 1 basis point [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures traded lower today, settling at$106 a barrel, after the U.S. Energy Information Administration reported significantly bigger-than-expected declines of roughly 10 million barrels each over the past two weeks. In other energy trading, natural gas ended slightly lower while gasoline gained 1.0%. Meanwhile, gold futures traded slightly higher, settling at $1,290.80 an ounce.
ETF Chart Of The Day #1: (OIH)
The Market Vectors Oil Services ETF (OIH, B+) was one of the worst performers today, shedding 0.91% during the session. Energy shares were among today’s worst performers, forcing this ETF to take a steep tumble during the morning hours. OIH eventually settled at $44.76 a share [see Energy Bull ETFdb Portfolio].
ETF Chart Of The Day #2: (IYK)
The Dow Jones U.S. Consumer Goods Index Fund (IYK, A-) also posted a weak performance today, shedding 0.87% during the session. After Coca-Cola (KO) reported weaker-than-expected sales, this ETF gapped significantly lower at the open. IYK eventually settled at $89.90 a share [see Consumer Centric ETFdb Portfolio].
ETF Fun Fact Of The Day
The best-performing retirement strategy over the trailing 1-year period has been the 30 Years Til Retirement Portfolio, which has gained 20.75%.
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Disclosure: No positions at time of writing.