Techs Slump, Financials Diverge
Tech-focused tradable funds and the
broad index funds tried to rally Monday, then fell back with their component
stocks. This is a classic sign of a weak market: Positive open, weak finish. And
few sectors were immune, judging by the exchange-traded funds.
The three most widely followed
funds all ended in the red. The Nasdaq 100 Tracking Stock
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lost 2.8% while the Standard & Poor’s 500 Index depository receipt
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fell 0.7%, both giving up early-session gains and ending near the low of the
day’s trading ranges. The Diamonds
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industrial average, declined 0.6%.
Chip and chip-gear makers took another
bath, sending the Semiconductor HOLDR
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SMH |
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sharpest decline among the ETFs. The security formed a bearish engulfing pattern
and undercut support at 75 1/4 (see Point A
in chart). Bulllish comments from Merrill Lynch didn’t spare Novellus Systems
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The stock dropped 2 5/8 to 50 1/8. Merrill Lynch said it expects the San Jose,
Calif.-based maker of wafer fabrication systems to post strong sequential growth
rates over the next several quarters.
The Internet Architecture HOLDR
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IAH |
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forfeited 2.1%, the Technology SPDR
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XLK |
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iSharres
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IYW |
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HHH |
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HOLDR
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On the upside, the rate-sensitive ETFs
pulled higher. The Regional Banking HOLDR
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RKH |
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gain among the U.S.-focused exchange-traded funds. The Dow Jones Financial
iShares
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XLF |
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XLF |
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HOLDR
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UTH |
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XLU |
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PowerRating) 0.8%.
The Biotech HOLDR
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BBH |
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but gave up earlier gains. For more on the day’s action in biotechs, check out
Kevin Marder’s market commentary.
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