Slowdown Helps Old, Hurts New
Exchange-traded
funds focused on the Old Economy got a lift from lessening
fears of a central-bank rate hike in August. The tradable
tech funds sagged on fears that a slowing economy will bring
slower earnings growth along with lower interest rates.
The
Cyclicals/Transportation SPDR
(
XLY |
Quote |
Chart |
News |
PowerRating) followed through on
Friday’s strong showing. The tradable fund got a boost from
the interest-rate retail sector
(
$RLX.X |
Quote |
Chart |
News |
PowerRating), which rose
1.8%, and automakers.
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Behind these index
moves is real institutional buying in leading retail
companies. Dow component Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating) gained 2 to 57
1/2 on double average volume, following through on Friday’s
impressive advance. The Gap
(
GPS |
Quote |
Chart |
News |
PowerRating) surged 2 3/8 to 37 7/8
on heavy trade as well.
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Among the
Cyclicals/Transportation Spider’s component automakers, Dow
component General Motors
(
GM |
Quote |
Chart |
News |
PowerRating) picked up 2 1/4 to 62 3/8.
The Pharmaceutical
HOLDR
(
PPH |
Quote |
Chart |
News |
PowerRating) gained 2.4%, aided by Lilly
(
LLY |
Quote |
Chart |
News |
PowerRating), up 3
to 104, and Pfizer
(
PFE |
Quote |
Chart |
News |
PowerRating), up 2 to 47 13/16.
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In the overseas
action, the Hong Kong WEBS series
(
EWH |
Quote |
Chart |
News |
PowerRating) rose 1.4%. The
Asian markets rebounded strongly on Friday with the reprise
in semiconductors.
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The Net funds led
the downside. The Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) shed 4.0%, the
Dow Jones Internet Index iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) 1.8%, the
Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) 1.8%.
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