Wall Street endured a steep sell-off today, as another round of disappointing economic reports and concerns over when the Fed will begin tapering weighed heavily on the markets. In economic news, ADP and Moody’s reported only 135,000 new private-sector jobs in May, well bellow the expected 170,000. Meanwhile, the Institute for Supply Management’s non-manufacturing purchasing managers’ index came in slightly higher, though the employment index missed forecasts. Tomorrow, investors will be keeping a close eye on the Labor Department’s employment report [see The Cheapest ETF for Every Investment Objective].
Following today’s disappointing economic reports, all three major U.S. equity indexes tumbled into negative territory. The Dow Jones Industrial Average ETF (DIA, A-) fell 1.52% after its underlying index slipped below the 15,000 level. The S&P 500 ETF (SPY, A) shed 1.44%, while the tech-heavy Nasdaq ETF (QQQ, A-) lost 1.23%.
In Europe, markets were broadly lower following a disappointing eurozone retail sales report. The Stoxx Europe 600 shed 1.49%. Meanwhile, Asian equities fell sharply after Japan’s Prime Minister Shinzo “Abenomics” speech underwhelmed investors; Japan’s Nikkei Stock Average tumbled 3.8%, while China’s Shanghai Composite Index slipped 0.07%.
Bond ETF Roundup
U.S. Treasury prices rose today as investors flocked to the safe-haven following disappointing U.S. economic reports. Yields on 10-year notes fell 6 basis points, while 30-year bond and 5-year note yields fell 6 and 4 basis points, respectively [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures rallied to a one-week high today U.S. Energy Information Administration and the American Petroleum Institute reported declines in U.S. crude supplies. In other energy trading, gasoline and natural gas futures were slightly higher. Meanwhile, gold ended essentially flat after a brief morning rally.
ETF Chart Of The Day #1: (XLB)
The Materials Select Sector SPDR ETF (XLB, A) was one of the worst performers today, shedding 2.22% during the session. Materials shares were among today’s worst performers, forcing this ETF to gap lower at the open. XLB traded lower throughout the day, eventually settling at $38.55 a share [see Commodity Guru ETFdb Portfolio].
ETF Chart Of The Day #2: (VXX)
The S&P 500 VIX Short-Term Futures ETN (VXX, B) was one of the best performers today, gaining 4.24% during the session. As the CBOE Volatility Index (VIX) jumped above 17 on Fed concerns, this ETF gapped slightly higher at the open. VXX traded higher throughout the day, eventually settling at $20.16 a share [see Low Volatility Portfolio].
ETF Fun Fact Of The Day
The best-performing regional strategy over the trailing 1-year period has been the Euro Free Europe Portfolio, which has gained 27.99%.
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Disclosure: No positions at time of writing.