Daily ETF Roundup: Stocks Slide Sideways
January 07 2013 - 5:00PM
ETFDB
Compared to last week, today’s trading session was relatively
quiet. The first few trading days of 2013 were explosive to say the
least, as the S&P 500 managed to close at its highest point
since December of 2007 last week. But the euphoria was quick to
wear off, as a new day brought a new set of problems and a lack of
optimism on The Street. The big story of the day was Bank of
America (BAC), which reached an agreement to pay $10 billion to
Fannie Mae using a combination of cash and mortgage repurchases
[see also Seven Simple & Cheap ETF Model Portfolios].
Global Market Overview: Stocks Slide Sideways
It was a relatively slow day, as investors took
profits from last week’s massive run with little else happening.
Now, traders will have their sights set on February as the new
Congress debates the U.S. debt ceiling, a story that will like push
and pull at stocks for the next few weeks. The S&P 500 ETF
(SPY, A) slipped nearly 0.3% while the Dow Jones ETF (DIA,
B) lost 0.4%. The tech-heavy Nasdaq ETF (QQQ, A-)
managed to eek out a 0.03% gain despite another weak trading
session for its top component AAPL.
Bond ETF Roundup
The bond market saw a bit more movement today, as investors
piled into inflation protected securities, helping (TIP) to jump
0.34%. The only major fixed income fund to lose ground was the
juggernaut (AGG) as this product finished the day -0.05%. These
funds will be especially crucial to watch in the coming weeks as
U.S. debt drama continues to play out.
Commodity Roundup
The physical gold fund (GLD) continued its lackluster
performance as of late, dropping 0.6% as the precious metal space
continues to exhibit weakness. Soybeans (SOYB) made a strong jump
to open the week and it gained about as much as gold lost, as the
ag space had a nice comeback after a few days of weakness.
ETF Chart Of The Day #1: (GDX)
As gold continues its weakness, the mining space has been
getting hammered. GDX has lost more than 14% in the trailing 13
weeks and has been featuring a beta of -2.19. GDX gapped lower at
market open and faced a harsh sell-off as the trading day came to a
close, losing 1.9% on the day [see GLD-Free Gold Bug ETFdb
Portfolio].
ETF Chart Of The Day #2: (DBA)
Ags had a strong performance to open up the week, allowing
the DB Agriculture Fund to benefit from the jump. Soybeans, cocoa,
coffee, cotton, corn, and wheat all had positive performances on
Monday, allowing DBA to jump 0.7% [see Commodity Guru ETFdb
Portfolio].
ETF Fun Fact Of The Day
The first fund launched in 2013 was the iPath S&P MLP
ETN (IMLP) which debuted on January 4th.
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Disclosure: No positions at time of writing.
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