Markets Go Nowhere, YET Facebook Face-Plants Again
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%.
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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 (NASDAQ:FB) 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.
John Nyaradi is the author of The ETF Investing Premium Newsletter.