US broad stock ETFs closed mixed Wednesday after data on new home sales came in lower unexpectedly, failing to cheer investors. 10-year Treasury notes jumped the most in two weeks even as the Federal Reserve bought $4.03 billion in US debt.
The S&P 500 Index (SPX) slipped or 0.2 percent to close at 1402.89 with the energy sector dropping the most. The sector witnessed a sell-off with Baker Hughes dropping sharply.
S&P’s losses were limited as consumer discretionary and consumer staples stocks moved higher against the general downward movement. The tech-laden NASDAQ Composite (COMP) defied gravity by adding 0.9 percent to close at 3,075.32.
Yield on benchmark Treasuries dropped as risk was off-table amid fewer mortgage applications and weaker home-sales data. Bernanke’s comment on energy price-rise hurting the economy and Fed’s buying spree pushed yields on 10-year Treasuries 7 basis points down to 2.29 percent. Yields on thirty-year bonds dropped 0.07 percentage points to settle at 3.38 percent.
ETFs in news:
The day’s biggest gainer, at least during mid-day trading, was The iPath Dow Jones UBS Natural Gas Subindex Total Return ETN (GAZ), which inched higher 0.59 percent, ahead of tomorrow’s EIA storage report. This instrument has witnessed extreme volatility this week and investor’s willing to try their luck may have to endure whipsaw action in the days ahead.
The other gas ETF, the United States Natural Gas Fund (UNG), managed to add a modest 0.7 percent despite analysts expecting gas storage to rise by 0.4 percent on the week.
Market Vectors India Small Cap ETF (SCIF) added 2.3 percent for the day, ending a five-day losing streak.
Silver miner Global X Silver Miners ETF (SIL) added 0.88 percent on Wednesday, reversing Tuesday’s losses. However, other precious-metals linked members continued to slide with ETFS Physical Palladium Shares (PALL) and the ETFS Physical Platinum Shares (PPLT) ending in red.
Among the day’s biggest decliners, Market Vectors Solar Energy ETF (KWT) topped the chart, losing 4.81 percent on the day.
The iPath S&P 500 VIX Short Term Futures ETN (VXX) was hammered for the second day, losing 4.97 percent as stock markets remained choppy. This counter has already witnessed two streaks of five-day losses in March. VXX has dropped nearly 50 percent since the beginning of the year and seems to have brought nothing but bad luck for those that have been long this index.
Disclosure: No holdings
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