
[Chart courtesy of MarketWatch.com]
1. Moving the Markets
U.S. stocks had a “9th inning rally” today, as they were able to overcome substantial early day losses and close higher across the board. Investors were anxious as the day began, given the recent devaluation of the RMB and the rising concerns about the health of China’s wobbly economy. Given China’s clout in the world economy, any signs of a more severe slowdown there is viewed bearishly, as slower growth equates to less sales, smaller corporate profits and, subsequently, lower stock prices.
Utilities and Energy lead the sector gains today, with each posting 1.32% and 1.38 % respectively.
Adding to China tech investor concerns, Alibaba Group Holding Ltd’s (BABA) shares fell to a record low after the company posted its slowest revenue growth in over three years, as its strategy to shift more services to mobile devices hurt advertising sales. The company’s results come at a time when China’s economy is expected to grow at its slowest pace in a quarter of a century.
Heading towards the end of the week, investors will be on edge as to how domestic markets will react to the currency downgrade in China, as well as how the EU is going to move forward after the latest decision in Greece.
Our 10 ETFs in the Spotlight were mixed during this roller-coaster day with 6 of them gaining and 4 of them closing down. The leader of the pack was Select Dividends (DVY) with +0.56% while the loser of the day turned out to be the Financials (IYF) with -0.70%.
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