Courtesy of John Nyaradi.
ETFs were quiet today as investors readied themselves for Econ Reports, Facebook IPO, and European woes tomorrow
Major markets and index ETFs were mixed today as investors anticipate tomorrow’s Econ Reports, a possible Facebook IPO, and a possible European solution. The S&P 500 decreased .05%, the Dow Jones Industrial Average dropped .16%, the NASDAQ composite increased .07%, and the Russell 2000 Index decreased .06%. Index ETFs followed suite as the SPDR S&P 500 ETF (NYSEARCA:SPY) declined .13%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) decreased .15%, the PowerShares QQQ Series 1 Trust ETF (NASDAQ:QQQ) increased .13%, and the iShares Russell 2000 Index ETF (NYSEARCA:IWM) decreased .04%. Quiet before the storm…
Europe, of course, remains the largest wild card as policy makers struggle to find a sovereign debt solution and Greece debt talks continue to stall. Of course, the only real way to fix the debt dilemma is to, well, to pay off all of the debt, except that paying off debt requires heavy revenue increases and heavy spending decreases, both of which would cripple an economy on the verge of (some would argue an economy already in) a recession. Quiet before the storm…
Tomorrow also brings the Facebook IPO announcement, which could possibly send all markets skyward for a minute or two. Facebook will file for a $5 billion IPO, which is the largest ever IPO from the Silicon Valley. As Facebook is valued at approximately $80 billion, watch out for tech ETFs, especially the Q’s, as tomorrow will be a big day for the tech sector. Quiet before the storm…
And lastly, tomorrow brings us a slew of economic report cards, including the ADP unemployment report, ISM report, construction spending report, and motor vehicle sales report, any of which would rock the boat on a normal day. Quiet before the storm…
Commodities ETFs and VIX ETFs were flat today, while US Dollar ETFs and Treasury Bond ETFs were up slightly, likely because the Fed seems more stable than the European Central Bank. Keep in mind that Iran could at any moment attempt to close the Strait of Hormuz or shut off European oil supplies, which would create a whole different kind of chaos for us all. Quiet before the storm…
Bottom Line: Major markets and index ETFs were mixed today as investors anticipated more US economic reports, the Facebook IPO, and more Europe unraveling. At any rate, bring an umbrella. But for today, markets were quiet before the storm…
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