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 .

Global Market Overview: VXX Spikes On Fed Concerns, XLB Tumbles

Following today’s disappointing economic reports, all three major U.S. equity indexes tumbled into negative territory. The Dow Jones Industrial Average ETF fell 1.52% after its underlying index slipped below the 15,000 level. The S&P 500 ETF shed 1.44%, while the tech-heavy Nasdaq ETF 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 .

Commodity Roundup

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:

The Materials Select Sector SPDR ETF 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 .

Click To Enlarge


ETF Chart Of The Day #2:

The S&P 500 VIX Short-Term Futures ETN 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 .

Click To Enlarge


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%.

Disclosure: No positions at time of writing.

Related Articles
  1. Chart Advisor

    Now Could Be The Time To Buy IPOs

    There has been lots of hype around the IPO market lately. We'll take a look at whether now is the time to buy.
  2. Economics

    Long-Term Investing Impact of the Paris Attacks

    We share some insights on how the recent terrorist attacks in Paris could impact the economy and markets going forward.
  3. Chart Advisor

    Copper Continues Its Descent

    Copper prices have been under pressure lately and based on these charts it doesn't seem that it will reverse any time soon.
  4. Mutual Funds & ETFs

    Buying Vanguard Mutual Funds Vs. ETFs

    Learn about the differences between Vanguard's mutual fund and ETF products, and discover which may be more appropriate for investors.
  5. Mutual Funds & ETFs

    ETFs Vs. Mutual Funds: Choosing For Your Retirement

    Learn about the difference between using mutual funds versus ETFs for retirement, including which investment strategies and goals are best served by each.
  6. Mutual Funds & ETFs

    How to Reinvest Dividends from ETFs

    Learn about reinvesting ETF dividends, including the benefits and drawbacks of dividend reinvestment plans (DRIPs) and manual reinvestment.
  7. Mutual Funds & ETFs

    Best 3 Vanguard Funds that Track the Top 500 Companies

    Discover the three Vanguard funds tracking the S&P 500 Index, and learn about the characteristics and historical statistics of these funds.
  8. Forex Fundamentals

    How to Buy Chinese Yuan

    Discover the different options that are available to investors who want to obtain exposure to the Chinese yuan, including ETFs and ETNs.
  9. Mutual Funds & ETFs

    ETF Fees: Why BlackRock is the Latest to Cut Them

    Low expense ratios are a big selling point for ETFs, but are they being focused on too much?
  10. Economics

    Is Wall Street Living in Denial?

    Will remaining calm and staying long present significant risks to your investment health?
  1. Should mutual funds be subject to more regulation?

    Mutual funds, when compared to other types of pooled investments such as hedge funds, have very strict regulations. In fact, ... Read Full Answer >>
  2. Do ETFs pay capital gains?

    Exchange-traded funds (ETFs) can generate capital gains that are transferred to shareholders, typically once a year, triggering ... Read Full Answer >>
  3. How do real estate hedge funds work?

    A hedge fund is a type of investment vehicle and business structure that aggregates capital from multiple investors and invests ... Read Full Answer >>
  4. Are Vanguard ETFs commission-free?

    While some Vanguard exchange-traded funds (ETFs) are available commission-free from third-party brokers, a large portion ... Read Full Answer >>
  5. Do Vanguard ETFs require a minimum investment?

    Vanguard completely waives any U.S. dollar minimum amounts to buy its exchange-traded funds (ETFs), and the minimum ETF investment ... Read Full Answer >>
  6. Can mutual fund expense ratios be negative?

    Mutual fund expense ratios cannot be negative. An expense ratio is the sum total of all fees charged by an asset management ... Read Full Answer >>

You May Also Like

Trading Center