Business Magazine

ETF News Update: Stock Market Wipes Out

Posted on the 02 June 2011 by Phil's Stock World @philstockworld

Courtesy of John Nyaradi

Stock Market Wipe Out

Stock Market Does a Header!

U.S. stock markets wiped out today on massively bad economic news.

The Dow Jones Industrials (NYSE: DIA) declined 279 points or -2.2%.  This was the worst first trading day of June since 1934. (See Stock Traders Almanac for more fascinating details about today’s record setting action.)

The NASDAQ (QQQ) dropped -66 points or -2.33%

The S&P 500 (NYSE: SPY) shed -30.65 points or -2.28%

At Wall Street Sector Selector, we had a comforting day with our portfolios positioned in inverse ETFs and put option positions.

The economic and financial news was nothing worse than appalling for ETF and stock market investors.

May ADP Employment data came in with a gain of 38,000 private sector jobs versus 179,000 previously, and this number casts a dark shadow over Friday’s all important employment report.

May ISM declined to 53.5 from 60.4, the lowest since the Lehman Brothers collapse in the autumn of 2009, and now resides perilously close to the 50 level which is the line in the sand between expansion and recession.

Moody’s downgraded Greece to Caa1, with outlook negative, which gives them a historic chance of default at 50/50.

Current housing slump worse than Great Depression with prices falling 33% this time around compared to 31% in the Depression. (MarketWatch)

Treasury Department reminds everyone that August 2nd is the day the U.S. runs out of money and defaults if Congress and the President can’t get together on raising the spending limit.

So it was quite a day, all in all, not to mention that Chinese and Australian PMI reports also showed declines.

QE2 is setting sail just in time for a major global slowdown, it seems,

Tomorrow we’ll see the weekly unemployment numbers along with April Factory Orders.

Get our free newsletter here

Disclosure: Wall Street Sector Selector actively trades a wide range of ETFs and positions can change at any time.

Click here to learn more about John’s book and for a free membership to Wall Street Sector Selector


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Bearish Signals Appear in Japan ETF Options

    Today’s tickers: EWJ, GIS, XING & DLTR EWJ - iShares MSCI Japan Index Fund – A couple of bearish options trades on the EWJ caught our eye today with shares... Read more

    By  Phil's Stock World
    BUSINESS, ECONOMICS
  • ETF Periscope: Bulls Gone Wild

    Periscope: Bulls Gone Wild

    Reminder: Sabrient is available to chat with Members, comments are found below each post.Courtesy of Daniel Sckolnik, ETF Periscope“There are basically two type... Read more

    By  Phil's Stock World
    BUSINESS, ECONOMICS
  • Emerging Markets ETF Options Fly

    EEM - iShares MSCI Emerging Markets Index ETF – Options volume on the EEM has topped 525,000 contracts in the first two hours of the trading session after one... Read more

    By  Phil's Stock World
    BUSINESS, ECONOMICS
  • ETF Periscope: Markets Slip and Slide on an Oily Sheen

    Periscope: Markets Slip Slide Oily Sheen

    by Daniel Sckolnik of ETF Periscope“If all the economists were laid end to end, they’d never reach a conclusion.” — George Bernard ShawThe equity markets are... Read more

    By  Phil's Stock World
    BUSINESS, ECONOMICS
  • ETF Periscope: Slick Trade for a Sideways Market

    Periscope: Slick Trade Sideways Market

    “After a certain point, money is meaningless. It ceases to be the goal. The game is what counts.” — Aristotle OnassisBlame it on Libya. Read more

    By  Phil's Stock World
    BUSINESS, ECONOMICS
  • ETF Periscope: The Bernanke Man Cometh

    Periscope: Bernanke Cometh

    “If it’s a penny for your thoughts and you put in your two cents worth, then someone, somewhere is making a penny.” – Steven Wright During this past week, the... Read more

    By  Phil's Stock World
    BUSINESS, ECONOMICS
  • ETF Periscope: The Bernanke Man Cometh, Part 2

    Periscope: Bernanke Cometh, Part

    Reminder: Sabrient is available to chat with Members, comments are found below each post.Courtesy of Daniel Sckolnik of ETF Periscope“Liking money like I like... Read more

    By  Phil's Stock World
    BUSINESS, ECONOMICS

Magazines