Courtesy of John Nyaradi.
Markets and index ETFs stood still today after an aggressive week.
Major markets and index ETFs stood still today after a busy week centered around Greece issues and positive economic indicators. The S&P 500 gained .23%, the Dow Jones Industrial Average added .35%, the NASDAQ Composite lost .35%, and the Russell 2000 Index lost .15%. Meanwhile the SPDR S&P 500 ETF (NYSEARCA:SPY) added .31%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) increased .15%, the PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ) declined .35%, and the iShares Russell 2000 Index ETF (NYSEARCA:IWM) lost .05%.
Wall Street was quiet today after an extremely busy week filled with volatility and uncertainty. Markets reacted heavily of course to the Europe and Greece situation, as the Greeks finally voted on an austerity plan only to have to wait until this Monday for the EU to sign off and vote on any bailout money. Meanwhile Moody’s went on a credit downgrading rampage and wiped out nine European countries ratings and threatened to downgrade nearly 100 global banks. With all of the downgrades and the likelihood that Greece will receive its bailout money after weeks of disputes among bond holders, Greek politicians, and EU officials, one wonders if it was all worth it as Greek demonstrators have almost burned Athens to the ground. With thousands of employees laid off an a 5 year deep recession, it will take a while for Greece to dig out of this mess.
News at home however tells a different story, as today’s Leading Indicators report was positive, and inflation seems to be staying low as indicated by today’s Consumer Price Index report and US workers’ earnings reports. The nation also saw improved numbers in the manufacturing and home building reports this week, as well as decreased unemployment claims. Although Europe is burning to the ground, America seems to be slowly clawing its way out of its own mess.
In other news, Oil and oil ETFs reached a 9 month high today, likely over fears that Iran will attempt to or continue to disrupt supply in response to Western embargoes. Gold and gold ETFs will likely rise as well if the European dilemma continues next week.
Bottom Line: Markets and ETFs were quiet today, possibly in anticipation of Greece and Europe’s vote come early next week. At home, the US economy and markets continue to grow, which is always good news, however Europe could be all our worst enemy at any point.
Disclaimer: Wall Street Sector Selector trades a wide variety of ETFs and positions can change at any time.
Click here to learn more about John’s book and for a free membership to Wall Street Sector Selector
