US Markets and ETFs Bounce Higher as Facebook Flops
Markets and ETFs correct after last week’s declines.
US Markets and Index ETFs corrected into positive territory today, as to be expected after last week’s painful declines. The SPDR S&P 500 ETF (NYSEARCA:SPY) gained 1.72%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) gained 1.22%, the PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ) added 2.80%, and the iShares Russell 2000 Index ETF (NYSEARCA:IWM) added 2.35%.
Despite all of the negative and flat our frightening news coming out of Greece and Europe lately, markets rebounded today, likely in a correction move from oversold levels. Last week after all turned out to be the worst week for Wall Street so far for 2012, so it is natural that a slight rebound occurred today, especially with no new news regarding the Euro dollar or Greece.
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Speaking of the Eurozone and ailing Euro dollar, Spanish bond yields hit 6.29% today, a small bit of news compared to the looming fact that Greece may indeed go rogue and wreck the financial system as we know it. China seems worried about its slowing 8% growth rate as well, as the country announced Sunday its intentions to prioritize “stabilizing growth;” this comment led to rumors about a Chinese stimulus program in the works. All I can say is that we really must be in trouble if a country with near 8% growth rates feels the need to “stimulate.” Perhaps the writing is on the wall for all of us.
The writing may also be on the wall for Facebook (NASDAQ:FB), which took a 10.99% drop today to close at $34.o3, well below its initial offering price. The Facebook IPO has been a complete flop so far, so one may wonder if indeed Facebook missed the boat as well.
Bottom Line: Markets corrected today after a heavy week of losses last week. One must remain skeptical and cautious however, as many chances of a “Lehman” event occurring still lie ahead.
John Nyaradi is the author of The ETF Investing Premium Newsletter.