Markets

Gold ETF Eyes First Weekly Loss Of 2017 But A Key Signal Is Positive

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Exchange traded funds tracking major stock indexes fell on Friday, amid sobering news that the U.S. economy grew 1.6% last year, its slowest pace since 2011, following a weaker-than-expected fourth quarter.

SPDR S&P 500 ( SPY ) slipped 0.1% in early trading. This ETF, a proxy for the broad U.S. market, made a 52-week high of 229.71 Thursday.

On the stock market today , SPDR Gold Shares ( GLD ) was slightly lower despite the weak economic data. Gold has weakened amid volatility in the dollar index and the stock market rally this week.

[ibdchart symbol="gld" type="weekly" size="quarter" position="leftchart" ]

GLD is poised for a weekly loss, which would be its first so far in 2017.

On Thursday, BlackRock ( BLK ), the firm behind iShares Gold Trust ( IAU ) and one of the world's largest investment managers, said gold may prove to be a solid asset in investor portfolios in the months ahead.

"Like the proverbial frog that does not notice the rise in water temperature until it's too late, investors seem to be experiencing a similarly stealthy rise in inflation ," wrote Russ Koesterich, portfolio manager for BlackRock's global allocation team.

He added: "Should inflation expectations rise faster than nominal rates, gold is likely to continue to merit a place in most portfolios."

S&P 500 Sectors

On Friday, the energy sector led the decline in the S&P 500. Health care led advancing sectors, up as much as 0.8%.

Chip ETFs surged amid positive news on the earnings front. Shares of tech giant Microsoft ( MSFT ) and Maxim Integrated Products (MXIM) gapped up to their best level in the past year after the companies beat analyst estimates in their latest reports.

IShares PHLX Semiconductor (SOXX) popped nearly 1% for a 52-week high of 129.98 before pulling back modestly.

The ETF is eyeing a weekly gain of more than 3% in above-average volume. It has risen every week so far this year.

IBD'S TAKE:As the Trump agenda emerges, readIBD LeaderboardandThe Big Picture every day to see how market leaders are performing and to assess whether the stock market has more room to run.

12 Bellwether ETFs

Here's a look at the performance of major exchange traded funds across key asset classes on the stock market today.

The Relative Price Strength (RS) Rating measures a stock's price performance over the last 12 months vs. all stocks and ETFs, on a scale of 1 to a best-possible 99.

SPDR S&P 500 ( SPY ), -0.1%, RS 55

PowerShares QQQ (QQQ), +0.1%, RS 60

SPDR Dow Jones Industrial Average (DIA), -0.1%, RS 62

IShares Core S&P Mid-Cap (IJH), -0.6%, RS 66

IShares Russell 2000 (IWM), -0.7%, RS 71

IShares MSCI EAFE (EFA), -0.3%, RS 41

Vanguard FTSE Emerging Markets (VWO), 0%, RS 48

SPDR Gold Shares ( GLD ), 0%, RS 18

United States Oil (USO), -1.3%, RS 50

IShares Core U.S. Aggregate Bond (AGG), +0.1%, RS 22

PowerShares DB U.S.$ Bullish (UUP), 01%, RS 36

IPath S&P 500 VIX Short-Term Futures (VXX), -1.0%, RS 1

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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