Posted on Wednesday, December 5th, 2012 | In Exchange Traded Funds
Although the Dow Jones Industrials and the S&P 500 advanced on budget negotiation hopes, Apple bit the Nasdaq, sending it into the red.
Both the Dow Jones Industrial Average and the S&P 500 made advances by noon on Wednesday, although Apple bit the Nasdaq Composite, which was down due to a decline by Apple of more than 4 percent (NASDAQ:AAPL). As of 12:43 Apple fell 4.26 percent to $551 because its share of the tablet market has decreased due to intense competition. Resolution of the strike at the Ports of Los Angeles and Long Beach by the International Longshore Warehouse Union helped feed hopes that the budget negotiations could be resolved in Washington. President Signals Compromise: Holy Guacamole
As of 1:47 EST, the Dow Jones Industrial Average jumped 125 points (0.97 percent) to 13,077. The S&P 500 Index advanced 0.50 percent to 1,414 – staying just below its 50-day moving average of 1,418 and above its 200-day moving average of 1,385 (NYSEARCA:SPY). The S&P 500 chart exhibits an inverse head-and-shoulders pattern (see green bar on chart) which suggests that the index could make a further advance. The 50-day moving average of 1,418 is an important resistance point for the S&P. If the S&P breaks past 1,418 it could quickly make more progress (Chart courtesy of Stockcharts.com) The Nasdaq Composite declined 0.38 percent to 2,985 (NASDAQ:QQQ). The Russell 2000 Index advanced 0.08 percent to 822 (NYSEARCA:IWM).
The “Dollar Bull” Index ETF (NYSEARCA:UUP) declined by 3 cents (0.14 percent) to 21.81 as of 12:13 EST.
As of 12:16 EST, the S&P 500 Volatility Index – or VIX – declined 4.09 percent to 16.42 and the VIX Short-Term Futures ETN fell 1.37 percent to 30.25 (NYSEARCA:VXX).
The Euro STOXX 50 Index finished Wednesday’s trading session with a 0.05 percent advance to 2,592 – staying above its 50-day moving average of 2,510 (NYSEARCA:FEZ). The FTSE 100 Index rose 0.39 percent to 5,892 (NYSEARCA:EWU). The German DAX Index advanced by 0.26 percent to 7,454 (NYSEARCA:EWG). France’s CAC 40 Index climbed 0.28 percent to 3,90 (NYSEARCA:EWQ). Spain’s IBEX 35 Index declined 0.24 percent to 7,883 (NYSEARCA:EWP). Italy’s FTSE MIB Index fell 0.54 percent to 15,954 (NYSEARCA:EWI).
As of 12:28 EST, the euro declined 0.09 percent against the dollar, trading at $1.3082 (NYSEARCA:FXE).
On London’s ICE Futures Europe Exchange, January futures for Brent crude oil declined by 53 cents (0.48 percent) to $109.31/bbl. (NYSEARCA:BNO, NYSEARCA:USO). The Impact of Shale Oil, the Tables Have Turned in Our Favor
December Gold futures declined by 40 cents (0.02 percent) to $1,694.00 per ounce (NYSEARCA:GLD).
SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) +1.08% as resolution of the strike at the Ports of Los Angeles and Long Beach helped feed hopes that the budget negotiations could be resolved.
SPDR EURO STOXX 50 ETF (NYSEARCA:FEZ) +0.48% making a more exaggerated advance than the Euro STOXX 50 Index, following the release of a “less bad” Final Eurozone Composite PMI for November.
Technology Select Sector SPDR ETF (NYSEARCA:XLK) -0.34% as Apple’s decline takes down the entire tech sector. Apple Breaking Key Monthly Support Line Again
iShares Barclays 20+ Year Treasury Bond Fund (NYSEARCA:TLT) +0.02% holding near the breakeven level after a mid-day decline as advancing stock prices increased investors’ appetite for risk, making the safe haven of government bonds less attractive. Learn More About iShares ETFs
SPDR S&P 500 INDEX ETF (NYSEARCA:SPY) +0.55% as investors remain hopeful about budget negotiations.
Bottom line: Resolution of the strike at the Ports of Los Angeles and Long Beach helped feed hopes that the budget impasse could be resolved, boosting stocks on Wednesday.
About John Nyaradi (http://www.wallstreetsectorselector.com)
John Nyaradi is Publisher of Wall Street Sector Selector: Your Home For ETF Investing! John writes a weekly guest column, John Nyaradi’s ETF Edge for MarketWatch.com and his investment articles have appeared in many online publications including Trading Markets, Money Show, Yahoo Finance, Investors Insight, Fidelity, ETF Daily News, iStock Analyst , among many others. His book, Super Sectors: How to Outsmart the Market Using Sector Rotation and ETFs, is published by John Wiley and Sons and included among the Years Top Investment Books in the 2011 Stock Trader’s Almanac.