Flat Finish to Choppy Week for ETFs, Stocks (Daily ETF Wrap-Up)

Published Oct. 2, 2009 at 4:00 a.m.

Market Wrap-Up

Stocks regained their footing Friday after an early drop on an uptick in the unemployment rate. The figure hit 9.8% in September, the highest level since June 1983. Stocks and most exchange-traded funds finished the week down.

The Dow shed 1.8% for the week.

The Dow Jones Industrial Average closed nearly flat on Friday, down 22 at 9487, recouping sharp opening losses. The Nasdaq ended down 9 at 2048 and the S&P 500 ebbed 5 to close at 1025.

Figures from the Labor Department showed September nonfarm payrolls declined by 263,000. The worst affected job sectors were in construction, manufacturing, retail trade and government. Earlier estimates forecast a 175,000 decrease, based on improved manufacturing data and the need for companies to rebuild inventories. The news underscores the erratic course of economic recovery. The Commerce Department said new orders for manufactured goods fell in August following four consecutive monthly increases. Orders declined $2.8 billion or 0.8% to $352.9 billion.

Friday's figures were the latest in a string of recent economic reports suggesting a 60% run in the S&P 500 since March may have overextended the economic landscape. Overall, the S&P 500 has fallen in six of the last seven sessions, though the third quarter did mark its best quarterly performance since 1998.

In a Friday afternoon television interview, top White House economic adviser Larry Summers told CNBC that job creation was months away, but that government stimulus programs have arrested the economic free fall of a year ago.

For a detailed rundown on Friday’s trading session, see our market story. 

Winners

Shares of the iShares MSCI Brazil Index fund (EWZ) rose 2.7% for the week after the Brazil-weighted fund climbed following the selection of Rio de Janeiro as the site of the 2016 Summer Olympics. Stock declines at the end of the week gave the SPDR Gold Trust fund (GLD) a boost as investors headed back to the traditional safe haven, pushing shares up 1.1% for the week.

Losers

The SPDR S&P Metals & Mining fund (XME) ended down 5.3% for the week as the dollar strengthened and pressured foreign currency denominated commodities. A week-long slide in the Nikkei stock index pushed the iShares MSCI Japan Index fund (EWJ) down 4.9%.

This Week’s Industry News

Launching Pad
The Wall Street Journal reported Monday that Swiss commodity supplier Glencore International and Credit Suisse (CS) will offer an exchange-traded fund backed by actual aluminum, using the same principles as ETFs backed by silver and gold bullion.

San Francisco-based Grail Advisors launched a quartet of actively managed exchange-traded funds Thursday. RiverPark Advisors of New York will manage the funds: RP Growth, RP Focused Large Cap Growth, RP Technology and RP Financials. Grail CEO Bill Thomas said the firm wants to launch between 24 and 30 actively managed ETFs in the next year.

Data Point
ETF manager Direxion said it will reduce the leverage of its index mutual funds but will not alter its exchange-traded funds strategy. Mutual funds that sought to achieve 250% or -250% of the performance of their index on a daily basis will now seek to achieve 200% or -200% of the performance of their index on a monthly basis, the company said. President Dan O'Neill said the company's ETFs will continue to mirror daily index returns.

Next Week’s Notebook

Earnings and Conference Calls

Monday
Mosaic, Peoples Educational Holdings, Robbins & Myers, RPM International, Team

Tuesday
AngioDynamics, Chattem, Pepsi Bottling Group, Radiant Logistics, Rocky Mountain Chocolate Factory, Yum Brands

Wednesday
Acuity Brands, Alcoa, Costco Wholesale, Family Dollar, Helen of Troy, Image Holdings, Kayne Anderson Energy Development, Merix , Monsanto, Premier Exhibitions, Richardson, Ruby Tuesday, Wolverine World Wide

Thursday
Acuity Brands, International Speedway, Marriott International, PepsiCo

Friday
Biomet, Infosys Technologies, Tortoise Capital Resources

Economic Data

Monday
10 a.m. ISM Non-Manufacturing Index

Tuesday
7:45 a.m. ICSC-Goldman Store Sales
8:55 a.m. Redbook

Wednesday
7:00 a.m. MBA Purchase Applications
10:30 a.m. EIA Petroleum Status Report
3:00 p.m. Consumer Credit

Thursday
8:30 a.m. Jobless Claims
9:00 a.m. RBC CASH Index
10:00 a.m. Wholesale Trade
10:30 a.m. EIA Natural Gas Report
4:30 p.m. Fed Balance Sheet

Friday
8:30 a.m. International Trade

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