Bonds Clock Utility ETFs
The tradable funds delivered mixed
Friday with tech-focused ETFs among the winners and losers, and utility funds
falling with bonds.
Treasury prices tumbled after a
government report showed a still-tight U.S. labor market and rising wages,
dashing hopes for the Federal Reserve to drop its credit-tightening bias.
Utility stocks, which are often held for dividend income and thus act like
bonds, fell in sympathy. The Utility HOLDR
(
UTH |
Quote |
Chart |
News |
PowerRating) lost 2.1%, the Dow Jones
Utilities iShares
(
IDU |
Quote |
Chart |
News |
PowerRating) 1.9%. The Cyclicals-Transportation SPDR
(
XLY |
Quote |
Chart |
News |
PowerRating)
gave up 1.5%.
TradingMarkets’ Tony Crescenzi, bond
market strategist for Miller, Tabak, thinks the analysts missed more
forward-looking signs of deterioration in the jobs market. For Tony’s contrarian
view, check out his latest commentary.
The technology ETFs were a mixed bag
as their component stocks contended with the bearish shift in Fed expectations
but warmed to Street-beating results from Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating). As I noted in my
Trading The News commentary, the shares in
the wireless technology company came under strong accumulation
in response to the news.Â
On the upside, the Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating)
moved ahead 4.5%, the day’s sharpest gain among the exchange-traded
funds. Qualcomm has the fourth largest weighting in the basket of 20
stocks of broadband companies. The B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) gained 2.3%, the
Internet Architecture HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating) 2.2%, the Dow Jones Technology Index
iShares
(
IYW |
Quote |
Chart |
News |
PowerRating) 1.3%.
On the downside, the Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating)
gave up 2.3%, the Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) 2.2%, the Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating)
0.8%.