Markets

Major Stock ETFs Recover After Big Jobs Miss; What Next For Rates?

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Stock ETFs closed in the black near session highs Friday after a decidedly weak start to the trading session.

The initial reaction to the keenly awaited employment report was surprising, one investing expert suggested.

"The jobs number this morning seems to be a solid number, and the muted reaction seems unjustified based on the data," said Philip Blancato, CEO and president of Ladenburg Thalmann Asset Management.

Blancato described the markets as anxious for a sign of what the Fed might do. He's looking to next week's Producer Price Index data as "an important next step on the way to potential rate hikes."

SPDR S&P 500 ( SPY ) gained 0.4% Friday, after briefly losing support at the 50-day moving average of around 204.

SPY nicked a 0.3% weekly loss but is holding on to a 1.4% gain for 2016.

SPDR Gold Shares ( GLD ) jolted 0.9% higher, snapping a four-session losing streak. Despite the rebound, it notched a 0.4% weekly loss.

The IBD Leaderboard ETF, which invests in physical gold, has advanced 1% from a buy point of 122.47 in six days.

The yellow metal popped in early U.S. trade after the jobs report showed a big miss. The U.S. economy added 160,000 nonfarm jobs in April vs. forecasts of 200,000 -- the slowest pace of hiring in seven months, according to news reports.

That disappointing news lowered the odds of interest-rate hikes in the near term -- a positive for the precious-metal and mining companies.

VanEck Vectors Gold Miners ( GDX ) surged 3.9%. The ETF holds 39 stocks, including Barrick Gold ( ABX ).

GDX has soared 76% year to date.

11 Bellwether ETFs

Here's a look at how the major exchange traded funds tracking various asset classes performed today.

Following daily ETF market action can be key to successful investing:

SPDR S&P 500 ( SPY ), +0.4%, RS 61

PowerShares QQQ ( QQQ ), +0.5%, RS 48

SPDR Dow Jones Industrial Average (DIA), +0.5%, RS 64

IShares Core S&P Mid-Cap (IJH), +0.4%, RS 64

IShares Russell 2000 (IWM), +0.6%, RS 48

IShares MSCI EAFE (EFA), -0.4%, RS 34

Vanguard FTSE Emerging Markets (VWO), +0.3%, RS 34

SPDR Gold Shares ( GLD ), +0.9%, RS 84

IShares Core U.S. Aggregate Bond (AGG), -0.2%, RS 56

PowerShares DB U.S.$ Bullish (UUP), +0.1%, RS 34

IPath S&P 500 VIX Short-Term Futures (VXX), -4.4%, RS 10

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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