Daily ETF Roundup: Wall Street Takes A Hit From Apple Upset

by on January 24, 2013 | ETFs Mentioned:

Today’s Apple (AAPL) upset weighed heavily on the markets, as investors digested the rather anemic earnings report from the tech giant. The company reported revenues that fell short of expectations and iPhone sales that missed quarterly projections; Apple shares plunged 12.35% to close at $450.50. In other corporate news, blue-chip conglomerate 3M (MMM) reported earnings that were in line with expectations, while revenues came in slightly higher. Markets, however, were bolstered by better-than-expected labor data; Americans filing new applications for jobless benefits fell to 330,000, the lowest level in five years [see also Seven Simple & Cheap ETF Model Portfolios].

Global Market Overview: Wall Street Takes A Hit From Apple Upset

After earnings euphoria somewhat faded today, only two major U.S. equity indexes managed to close in positive territory. The tech-heavy Nasdaq ETF (QQQ, B+) slumped 1.38%, dragged down by Apple. The Dow Jones Industrial Average ETF (DIA, B) inched 0.41% higher, while the S&P 500 ETF (SPY, A) eked out a 0.03% gain. In Europe, markets were slightly higher even after a report indicated a slowdown in private-sector activity in the euro zone. A sharp selloff in Finnish telecom giant Nokia (NOK) and Apple’s disappointing earnings also weighed heavily on both European and Asian equities. Despite data showing an uptick in manufacturing activity in China, the Shanghai Composite slipped 0.8%. Meanwhile, Japan’s Nikkei Stock Average gained 1.3% on a weaker yen.

Bond ETF Roundup

U.S. Treasury prices finally dropped today after data indicated a drop in weekly jobless claims. Yields on 5 year notes rose 1 basis point, while 10-year notes’ and 30-year bonds’ yields rose 2 basis points.

Commodity Roundup

With the exception of natural gas, energy futures were mostly higher today on positive U.S. labor data and renewed optimism over the Seaway pipeline. Gold prices, however, slipped as investors flocked to riskier assets following today’s encouraging report. In agriculture, prices for wheat, corn, and coffee were lower, while cotton futures soared nearly 3%.

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 a dismal 2.16% during the session. Following today’s disappointing earnings report from Apple (AAPL), this ETF gapped significantly lower at the open. IYW slid sideways for the day, eventually settling at $71.50 a share [see High Tech ETFdb Portfolio].

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ETF Chart Of The Day #2: (SKYY)

The ISE Cloud Computing Index Fund (GEX, C+) was one of the best performers today, gaining 2.22% during the session. After online streaming and movie rental company Netflix (NFLX) reported better-than-expected earnings, shares of the company soared more than 42%, forcing this ETF to gap significantly higher at the open. SKYY slid sideways for the remainder of the day, eventually settling at $21.22 a share [see 5 ETF Plays For Hot Tech Trends In 2013].

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ETF Fun Fact Of The Day

The best-performing retirement strategy over the trailing thirteen week period has been the Aggressive Portfolio, which has gained nearly 5.6%.

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Disclosure: No positions at time of writing.