Daily ETF Roundup: Stocks Pull Back On Fed And Lackluster GDP

By ETFDatabase | January 30, 2013 AAA

Today's Federal Reserve monetary policy announcement and upsetting economic data put selling pressures back on Wall Street, as bearish sentiment quickly swept over recent earnings euphoria. The central bank indicated that it will continue purchasing $85 billion each month of long-termTreasuryandmortgage-backed securities, stating that economic activity has paused in recent months. To add insult to injury, U.S. GDP came in unexpectedly at an anemic 0.1% decline, bucking economists' expectations of a 1% uptick .


Global Market Overview:Stocks Pull Back On Fed And Lackluster GDP

After today's Fedannouncementand lackluster GDP report, all three major U.S. equity indexes pulled back, closing in negative territory. TheDow Jones Industrial Average ETF logged in a 0.34% loss, as its underlying index shifted further away from the psychologically-important 14,000 level. The S&P500 ETF fell 0.39%, whilethetech-heavy Nasdaq ETF slipped 0.21%. In Europe markets were mostly lower after Spain's fourth quarter GDP came in lower than expected. Asian equities, however, were mostly higher after Japan reported better-than-expected retail-sales data. Also bolstered by a weaker yen, Japan's Nikkei Stock Average rallied 2.3%.

Bond ETF Roundup

U.S. Treasury prices rose today, snapping a four-day losing streak, after the central bank said it would continue its massive economic stimulus. Yields on 10-year notes and 30-year bonds declined roughly 1 basis points, while short-term securities quickly swung to gains following the statement .

Commodity Roundup

Gold and silver futures took the spotlight today, as investors piled back into the safe haven metals following the Fed's announcement. Crude oil also closed higher today despite lackluster domestic growth data as investors became more optimistic about China's economy.


ETF Chart Of The Day #1:

The S&P 500 VIX Short-Term Futures ETN was one of the best performers today, gaining a whopping 6.17% during the session. Following today's Fed announcement and upsetting GDP data, this ETF gapped significantly higher at the open. VXX rose higher throughout the day, eventually settling near its high of $24.33 a share .

Click To Enlarge  


ETF Chart Of The Day #2:

The 3x Long 25+ Year Treasury Bond ETN was one of the worst performers today, shedding 1.14% during the session. As the central bank announced its plan to continue to purchase$85 billion each month of long-termTreasuryandmortgage-backed securities, this leveraged ETF gapped significantly lower. LBND slid sideways for the remainder of the day, eventually settling at $42.35 a share .

Click To Enlarge  


ETF Fun Fact Of The Day

The best-performing retirement strategy over the trailing one-year period has been the30 Years Til Retirement Portfolio,which has gained over 17%.

Disclosure: No positions at time of writing.

comments powered by Disqus
Related Analysis
  1. Earnings Expectations For The Week Of September 15
    Stock Analysis

    Earnings Expectations For The Week Of September 15

  2. Nasty Reviews Unlikely To Hurt Activision's 'Destiny'
    Stock Analysis

    Nasty Reviews Unlikely To Hurt Activision's 'Destiny'

  3. 3 Nuclear Energy Projects That Could Begin Soon
    Stock Analysis

    3 Nuclear Energy Projects That Could Begin Soon

  4. First Negative Week in a Month? - Ahead of Wall Street
    Stock Analysis

    First Negative Week in a Month? - Ahead of Wall Street

  5. Bull of the Day: Methode Electronics (MEI) - Bull of the Day
    Stock Analysis

    Bull of the Day: Methode Electronics (MEI) - Bull of the Day

Trading Center