Daily ETF Roundup: Stocks Drop On Disappointing Labor Data

by on April 5, 2013 | ETFs Mentioned:

U.S. equities slid today after a highly-anticipated labor report came in below expectations. Though buyers stepped in to snatch up downtrodden shares later in the session, the S&P 500 and Nasdaq still logged their worst one-week declines this year. Weighing heavily on the market, the report from the Labor Department showed employers added 88,000 jobs in March, well below the 200,000 forecast. The unemployment rate, however, notched lower to 7.6%, large due to people dropping out of the work force [see Free Member Report: How To Pick The Right ETF Every Time].

Global Market Overview: Stocks Drop On Disappointing Labor Data4-5

Following today’s disappointing employment report, all three major U.S. equity index fell to close in negative territory. The Dow Jones Industrial Average ETF (DIA, B) fell 0.32%, as its underlying cut most of its losses after being down more than 170 points at its session low. The S&P 500 ETF (SPY, A) slipped 0.45%, while the tech-heavy Nasdaq ETF (QQQ, B+) shed 0.83%.

In Europe, markets were broadly lower after a report showed lower retail sales in the euro zone; the Stoxx Europe 600 tumbled 1.6%. Meanwhile, Asian markets were mixed; Japan’s Nikkei Stock Average jumped 1.6% in the wake of the Bank of Japan’s aggressive policy announcement, while China’s Shanghai Composite Index slipped 0.11%.

Bond ETF Roundup

U.S. Treasury prices rallied once again today following a weak labor report, which showed that the U.S. economy in March added the smallest number of jobs in 9 months. Yields on 10-year notes fell 8 basis points, while yields on 5-year notes and 30-year bonds fell 3 and 14 basis points, respectively [see also Seven Simple & Cheap ETF Model Portfolios].

Commodity Roundup

Crude oil futures fell once again today, settling below $93 a barrel as week labor data raised concerns about energy demand.  Natural gas futures, however, ended much higher. Meanwhile, gold futures rallied on today’s disappointing U.S. jobs report, logging in its biggest one-day gain since November.

ETF Chart Of The Day #1: (IYW)

The Dow Jones U.S. Technology Index Fund (IYW, A) was one of the worst performers today, shedding 1.03% during the session. Technology shares were among today’s worst performers, forcing this ETF gap significantly lower at the open. IYW slid sideways for the remainder of the day, eventually settling at $71.21 a share [see High Tech ETFdb Portfolio].

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ETF Chart Of The Day #2: (TBT)

The UltraShort Barclays 20+ Year Treasury ETF (TBT, A) also posted a weak performance today, shedding 4.04% during the session. As investors piled into 30-year bonds, yields plummeted 14 basis points, forcing this ETF to gap significantly lower at the open. TBT slid sideways for the remainder of the day, eventually settling at $60.10 a share [see 30 Years Til Retirement Portfolio].

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Click To Enlarge


ETF Fun Fact Of The Day

The best-performing regional strategy over the trailing 1-year period has been the Global Titans ETFdb Portfolio, which has gained 12.93%.

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Disclosure: No positions at time of writing.