Dollar Rise Squeezes ETFs and Indexes (Daily ETF Wrap-Up)

Published Oct. 26, 2009 at 4:00 a.m.

Market Wrap-Up

Stocks started strong, then took a dive on Monday as investors got jittery over the dollar and oil prices, sending commodity-based exchange-traded funds on a slide. The euro hit a session low of $1.485 against the dollar as commodity prices reversed in midsession.

The Dow Jones Industrial Average closed down 105 points at 9867. The Nasdaq ended 13 lower at 2142 and the S&P 500 dropped 13 to 1067.

According to Thomson Reuters, 81% of the 199 S&P 500 companies that have reported results have beaten estimates. The tech sector had a bright spot today in Marvell Technology Group (MRVL), which jumped after the company lifted its earnings outlook, citing better-than-forecast revenue and a tax benefit. Meanwhile, billionaire Nelson Peltz took a 4.3% stake in asset manager Legg Mason (LM) and will take a board seat in exchange for acquiring no more than 9.9% of the company.

Monday's economic calendar was light, with the Treasury selling $7 billion of five-year inflation-protected notes to kick off a busy week of debt sales.

Overseas, Asian markets ended mostly higher. South Korean shares advanced on upbeat economic data, while expectations of strong corporate earnings lifted exporters in Japan. Japan's Nikkei 225 Average climbed 0.8% to 10362.62, South Korea's Kospi rose 1% and the Shanghai Composite Index inched up 0.1%. European shares rose, with autos and chemical firms leading a broad-based advance, although ING (ING) shares declined after the firm announced a restructuring.

Oil futures dropped on the Nymex after an early rise. As of 4:02 p.m., front-month crude futures were down 3 cents from the regular session close at $78.65 a barrel.

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

Winners

Monday's abrupt market reversal juiced shares of the iPath Exchange Traded Notes S&P 500 VIX Short-Term Futures Index fund (VXX) which rose 3.3%...The Semiconductor HOLDRS fund (SMH) held up against the market slide, gaining 0.5% as Marvell's results helped sustain the sector.

Losers

A slide in natural gas prices pushed down shares of the United States Natural Gas fund (UNG) 4.8%. The rising dollar squeezed gold prices, knocking 4.3% off the Market Vectors Gold Miners fund (GDX).

Monday’s Industry Headlines

Launching Pad

The Jeffries Thomson Reuters/Jeffries CRB Global Agriculture Equity Index fund, and Jefferies Thomson Reuters/Jeffries CRB Global Industrial Metals Equity Index fund begin trading Tuesday on the New York Stock Exchange. The agriculture fund will track the results of an index based on producers of seeds, traits (seed characteristics attained through genetic modification), chemicals and fertilizers, farm machinery, equipment and irrigation, agricultural products, and livestock and aquaculture, according to its prospectus. The industrial metals fund will track a proprietary index linked to production and extraction of metals used in industrial production.
A pair of Index IQ exchange traded funds based on the CPI Infaltion index and a global resources index begins trading Tuesday on the NYSE. Index IQ last month announced plans to launch 15 funds based on its indexes, using hedging strategies based on the performance of its indexes. The IQ CPI Inflation Hedged fund and IQ Arbitrage Global Resources funds will be based on the same approach as the IQ Hedge Multi-Strategy Tracker ETF, which began trading earlier this year, the company said.

Tuesday’s Notebook

Earnings and Conference Calls

A.M. Castle & Co, Abaxis, Inc., Acadia Realty Trust, ACE Limited, Actel, Advantest, Advent Software, Ahlstrom, Alcon, AMCORE Financial, Amedisys, American Campus Communities, American Dental Partners, American Ecology, Apollo Group, Armstrong World Industries, Arthur J. Gallagher & Co., ATC Technology, Avery Dennison, B&G Foods, Ballard Power Systems, Bayer, BE Aerospace, Bemis, Benchmark Electronics, Berkshire Hills Bancorp, Boston Properties, Boyd Gaming, BP, BTU International, Buffalo Wild Wings, Cabela's, Canadian Pacific Railway, Canon, Capella Education, CapitaLand, Carpenter Technology, Carter's, Cascade Microtech, CE Franklin, Celanese, Centene, Central European Media Enterprises, Century Aluminum, Cephalon, Ceradyne, Chemed, Chicago Bridge & Iron, CommScope, Compass Minerals, Compugen, Computer Task Group, Concurrent Computer, Convergys, Corn Products International, CSG Systems, CTS, Cynosure, Daimler, DeVry, DineEquity, Double-Take Software, DreamWorks Animation, DSP Group, Dynamics Research, E*TRADE Financial, EarthLink, Ecolab, Enagas, Endologix, Endwave, Entegris, First Financial Holdings, First Place Financial, FirstEnergy, FirstMerit, Fiserv, FPL Group, Franklin Resources, Fresh Del Monte Produce, FSI International, General Maritime, Harris, Heidrick and Struggles International, Heritage Financial, Honda Motor, Hospira, Hydrogenics, IAC, Iconix Brand Group, IDT, Integrated Device Technology, Johnson Controls, Jones Lang LaSalle, KeyTronic, L-3 Communications, Lexicon Pharmaceuticals, Liberty Mutual Group, Life Technologies, Massey Energy, McKesson, Mediq, Mercury Computer Systems, Merit Medical Systems, Methanex, Midsouth Bancorp, Midwest Banc Holdings, Molex, MoSys, MRF, Nalco Holding, National Australia Bank, National Instruments, NEC Capital Solutions, NeuStar, NewAlliance Bancshares, Norfolk Southern, NuStar Energy, NutriSystem, Open Text, Palm Harbor Homes, Palm Harbor Homes, Panera Bread, Patriot Coal, PDF Solutions, Peet's Coffee & Tea, Performance Technologies, Petroleum Geo-Services, Plantronics, Pool, Psychiatric Solutions, Quaker Chemical, Quantum, RadiSys, Rayonier, RenaissanceRe Holdings, RF Micro Devices, Rogers Communications, Saipem, Schnitzer Steel Industries, Scientific Learning, SeaBright Insurance Holdings, Silicon Storage Technology, Sonic Automotive, SonoSite, Southwest Georgia Financial, Stericycle, Sun Bancorp (New Jersey), Tanger Factory Outlet Centers, TD Ameritrade Holding, Tennant, Textron, Theravance, Transalta, Trimble Navigation, Trustmark, Under Armour, United States Steel, Urologix, Valero Energy, ValueClick, Visa, Waters, Wipro, Wynn Resorts

Economic Data

8:55 a.m. Redbook
9:00 a.m. S&P Case-Shiller HPI
10:00 a.m. Consumer Confidence
10:00 a.m. State Street Investor Confidence Index

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