Courtesy of John Nyaradi.
ETFs flatten after slight correction yesterday and continued Facebook face-plants.
US indexes and ETFs finished mixed and flat today, as investors continue to scratch their heads regarding a possible China stimulus, European Armageddon, and Facebook face-plant. Today’s flatness comes on the heals of a correction yesterday, and the outlook still looks grim so long as Europe continues to smolder.
The SPDR S&P 500 ETF (NYSEARCA:SPY) gained .17% while the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) gained .02%; the PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ) lost -.11% and the iShares Russell 2000 Index ETF (NYSEARCA:IWM) lost .60%. All in all, a mixed day, except for the new kid on the block, Facebook (NASDAQ:FB), which continues to face-plant. Possibly the worst IPO in history got even worse today, as the company’s stock dove an additional 8.90%.
Typically, when a company goes public, the stock goes vertical. Facebook’s stock went vertical, just in the wrong direction.
News from abroad continues to swirl around a possible Chinese stimulation of its own economy, coupled with 6% yields at a successful Spanish bond auction. European leaders meet tomorrow to discuss how to prevent the European financial system from unraveling (good luck), while existing home sales improved by 3.4%.
Bottom Line: All in all, a pretty boring day, with the exception of the Facebook face-plant which continues to generate reactions including laughter, disgust, and a sense of “that ship has sailed,” within the marketplace. Tomorrow could be ugly if the European’s meeting does not go as politically “correct” as hoped.
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