Courtesy of John Nyaradi.
Major Markets and Index ETFs closed mixed after a solid week filled with Fed action, Tech Sector ETF, and Gold ETF surges.
Major indexes closed mixed today as the S&P 500 lost .16%, the Dow Jones Industrial Average lost .58%, the Nasdaq Composite gained .4% and the Russell 2000 Index gained .34%. Index ETFs were mixed as well as the SPDR S&P 500 ETF (NYSEARCA:SPY) lost .13%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) lost .52%, the PowerShares QQQ Series 1 ETF (NASDAQ:QQQ) gained .3%, and the iShares Russell 2000 Index ETF (NYSEARCA:IWM) gained .69%.
Index ETFs likely closed mixed because of today’s lackluster economic reports: US GDP growth for 4th quarter 2011 was 2.8%, while consumer sentiment rose a measly 5.1 points to 75 points total on the Consumer Sentiment index.
Tech Sector ETFs, however, including the PowerShares QQQ Series 1 ETF (NASDAQ:QQQ), registered positive gains today and this week, as the NASDAQ hit its 11 year high on Wednesday. Since earnings seasons is beginning to wind down, we will see how long the tech sector euphoria continues.
Gold ETFs including the SPDR Gold Trust ETF (NYSEARCA:GLD) also closed higher again today, as investors continue to flock to gold as an inflation guard. Beware gold investors, what goes up must come down, eventually. Oil ETFs, however, sunk today, as Chevron (NYSE:CVX) announced poor earnings reports. Iran however has threatened to embargo European countries of Iranian oil which could raise oil prices next week.
Speaking of Europe, ratings agency Fitch announced the further downgrades of Italy, Spain, Belgium, Slovenia, and Cyprus late Friday afternoon, I cannot wait to see the Euro ETF bloodbath the downgrades will likely cause on Monday. There is a glimmer of hope, however, as Greece and private bond holders are closer to a deal, while European leaders continue to talk about the plight of the world and European economies at the World Economic Forum in Davos, Switzerland.
Bottom Line: Today ended on a mixed note after a very busy week of Fed action, gold action, and tech sector action. Europe is also heating up again too with the recent downgrades and a possible Greek solution. Beware come Monday, Iran and Europe could spell disaster for us all.
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