ETF Action: Research

5.27.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: U.S. markets rose for the second consecutive session on Thursday, bolstered by healthy gains from retailers and growth-oriented pockets of the markets. Jobless claims continued to fall historic lows, and U.S. gross domestic product (GDP) fell 1.5% in Q1 2022. The NASDAQ 100 (QQQ) jumped 2.77%, the S&P 500 (SPY) gained 2.00%, and the Dow Jones Industrial Average (DIA) climbed 1.61%. Mid-Caps (IJH) and Small-Caps (IJR) were also higher by over 2%. All U.S. Factor strategies were in the green yesterday led by S&P 500 High Beta (SPHB, +4.19%) and S&P 500 Pure Growth (RPG, +3.20%). S&P 500 Quality (SPHQ) and S&P 500 Equal Weight (RSP) each returned over +2%. Emerging Markets (EEM, +1.56%) rose on strength from China (MCHI, +3.46%) while Developed ex-U.S. Markets (EFA, +1.10%) benefitted from positive returns in Europe.

Sectors: Real Estate (XLRE, -11 bps) was the only U.S. Sector in negative territory on Thursday while Consumer Discretionary (XLY) shot up 4.90% and handily outpaced other sectors. Retail (XRT, +4.78%) had another strong day lifted by DollarTree (1.03% weight in XRT), which rocketed nearly 22% after a sizeable earnings beat, and Macy’s (92 bps weight in XRT), which surged over 19% on strong earnings results. Communication Services (XLC), Technology (XLK), Financials (XLF), and Industrials (XLI) all were up over 2% on the day. XLK received a boost from Semiconductors (XSD, +4.07%) and Internet (XWEB, +4.03%). 

Themes: All thematic segments saw positive returns yesterday with the exception of Digital Infrastructure (SRVR, -11 bps). Most segments climbed over 2.50% with Online Retail (IBUY, +5.51%), NextGen Transportation (DRIV, +4.88%), Evolving Consumer (SOCL, +4.34%), and Clean Energy (PBW, +4.24%) leading the charge. Solar (TAN) increased 3.43% and Wind (FAN) added 1.43%. TAN and FAN are now trading just above relative 50-Day Moving Averages and FAN is approaching overbought territory. All other thematic segments are currently trading below relative 50-Day and 200-Day Moving Averages. 

Commodities & Yields: Broad Commodities (DJP) finished up 55 bps yesterday as Energy (DBE) rose 1.79% and Agriculture (DBA) was up 1%. WTI Crude Oil (USO) increased 2.56% while Natural Gas (UNG) fell 2.62% on the day. U.S. Aggregate Bonds (AGG) were relatively flat, 20+ Year Treasury Bonds (TLT) dipped 45 bps, and the U.S. Dollar (UUP) declined 33 bps. Meanwhile, the U.S. 10-Year Treasury Yield stood just below 2.75% at Thursday's market close.

5.26.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: Volatility continued on Wednesday as major averages bounced back from a rocky Tuesday session. The NASDAQ 100 (QQQ) gained 1.40%, the S&P 500 (SPY) added 88 bps, and the Dow Jones Industrial Average (DIA) climbed 59 bps after the release of the Fed minutes showed the centeral bank remains prepared to raise interest rates quickly in order to battle inflationary pressures. Most members believe a 50 point point increase is appropriate for the next couple of meetings according to the minutes. Growth-oriented pockets of the markets were strong as S&P 500 High Beta (SPHB, +2.56%) and S&P 500 Pure Growth (RPG, +1.88%) outpaced other U.S. Factor strategies, all of which posted gains on the day. S&P 500 Pure Value (RPV) also rose 1.30% and has outperformed RPG by nearly 30% year-to-date. Developed ex-U.S. Markets (EFA) were flat while Emerging Markets (EEM) climbed 49 bps as Taiwan (EWT) rose over 1.15%.

Sectors: The defensive Utilities (XLU) and Health Care (XLV) sectors were the only sectors to post losses yesterday, falling just 7 bps and 3 bps, respectively. Consumer Discretionary (XLY) jumped 2.87% and Energy (XLE) climbed 2.07% while Communication Services (XLC) and Technology (XLK) each gained over 1%. XLY was bolstered by Retail (XRT) which shot up 6.88% on Wednesday. Caleres (1.28% weight in XRT), an American footwear company, rocketed nearly 30% on the day after posting a significant earnings beat while GameStop (1.16% weight in XRT) also climbed over 29%. XLE benefitted from a 4.02% rise from Oil & Gas Exploration & Production (XOP) and XLK received a boost from Internet (XWEB, +4.63%). XLE now sits almost 88% above its 52-Week Lows.

Themes: Strong day for global thematics as the majority of segments increased by over 1.50% yesterday Disruptive Tech (ARKW), Multi-Theme (ARKK), and Online Retail (IBUY) all jumped over 4.50% and led other segments. Advanced Materials (REMX, -84 bps), Water (PHO, -31 bps), and Biotech (SBIO) were the only segments in the red on Wednesday. SBIO has fallen over 39% year-to-date and only 6.15% of its holdings are currently trading above relative 50-Day Moving Averages. Space (UFO) was up over 3% followed by Cloud Computing (SKYY, +2.87%) and Evolving Consumer (SOCL, +2.71%).

Commodities & Yields: The U.S. 10-Year Treasury Yield was relatively steady on Wednesday, finishing above 2.75% while U.S. Aggregate Bonds (AGG) rose 42 bps, TIPS Bonds (TIP) were up just 8 bps, and the U.S. Dollar (UUP) added 37 bps. Broad Commodities (DJP) finished up 30 bps as Natural Gas (UNG) rose 1.36%, Nickel (JJN) increased 1.80%, and Cotton (BAL) jumped 4.04%. 

5.25.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: After rising on Monday, U.S. markets were mixed yesterday as large-cap, growth-oriented tech names fell sharply. The Dow Jones Industrial Average (DIA) gained 17 bps while the NASDAQ 100 (QQQ) and the S&P 500 (SPY) declined 2.13% and 74 bps, respectively. On Monday evening, Snap issued a warning to investors of disappointing earnings and revenues figures amid a slowdown in growth. Snap plunged 43% and its losses reverberated across tech names such as Meta Platforms (3.46% weight in QQQ and 1.35% weight in SPY), which sunk over 7%, and Alphabet (7.22% weight in QQQ and 3.83% in SPY), which fell over 5%. S&P 500 Low Volatility (SPLV) and S&P 500 High Dividend (SPHD) each climbed over 1% on the day and outperformed other U.S. Factor strategies. S&P 500 High Beta (SPHB) lost 3.50% and S&P 500 Pure Growth (RPG) dipped 2.34% while S&P 500 Pure Value (RPV) was flat. Emerging Markets (EEM, -1.74%) were dragged lower by while Developed ex-U.S. Markets (EFA) was down just 16 bps.

Sectors: U.S. Sectors were mixed on Tuesday led by Utilities (XLU, +2.00%), Consumer Staples (XLP, +1.64%), and Real Estate (XLRE, +1.17%). Communication Services (XLC) plunged 3.55% and Consumer Discretionary (XLY) also dropped 2.57%. XLC and XLY now sit at 52-Week Lows and XLY has entered oversold territory. Retail (XRT) declined 3.29% on the day and also sits in oversold territory. Internet (XWEB) plummeted 6.62% and Software & Services (XSW) declined 3.89%, pulling Technology (XLK, -1.48%) down. Oil & Gas Equipment & Services (XES, +56 bps) was the only industry to post gains on the day.

Themes: Digital Infrastructure (SRVR, +80 bps) and Wind (FAN, +11 bps) were the only thematic segments in positive territory on Tuesday while the majority of segments dropped over 3.00%. Evolving Consumer (SOCL) was battered, falling over 8% yesterday given its 6.14% weight to Snap. Pinterest (5.29% weight in SOCL) also declined over 23% on the Snap news. Multi-Theme (ARKK), Disruptive Tech (ARKW), and Online Retail (IBUY) all fell over 6% and Genomics (ARKG) was down over 5%. SOCL and IBUY currently sit at 52-Week Lows. IBUY is down over 58% year-to-date. 

Commodities & Yields: The U.S. Dollar (UUP) was lower by 29 bps yesterday, U.S. Aggregate Bonds (AGG) rose 77 bps, and 20+ Year Treasury Bonds (TLT) jumped 1.97% as the 10-Year U.S. Treasury Yield fell sharply, finishing above 2.76%. Broad Commodities (DJP) finished down 40 bps as Agriculture (DBA) dipped 1.20% and Industrial Metals (DBB) fell 91 bps. Wheat (WEAT) and Cotton (BAL) were both down around 3%, and Nickel (JJN) lost 4.84%. Natural Gas (UNG) and WTI Crude Oil (USO) were relatively flat.

5.24.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: U.S. markets started the week off strong on Monday rising steadily despite recent market turmoil. President Biden announced he was considering reducing tariffs on certain products imported from China, bolstering market sentiment. Investors will be paying close attention to the GDP data release, a speech from Fed Chairman Jerome Powell, and Fed meeting minutes this week along with earnings results for several other big-name retailers. The Dow Jones Industrial Average (DIA) rose 2.05%, the S&P 500 (SPY) climbed 1.87%, and the NASDAQ 100 (QQQ) finished up 1.66%. All U.S. Factor strategies were positive yesterday with S&P 500 Quality (SPHQ, +2.72%) leading the charge. S&P 500 Enhanced Value (SPVU), S&P 500 Momentum (SPMO), and S&P 500 Growth (SPYG) all added over 2%. Developed ex-U.S. Markets (EFA, +1.70%) were also strong as Netherlands (EWN), Germany (EWG), and France (EWQ) all gained over 2%. Emerging Markets (EEM) increased 75 bps, boosted by Brazil (EWZ, +3.63%).

Sectors: Financials (XLF) jumped 3.25% on Monday and outpaced other U.S. Sectors, all of which posted gains. Energy (XLE, +2.64%), Technology (XLK, +2.30%), and Consumer Staples (XLP, +2.07%) followed. XLE now sits at 52-week highs and has climbed over 52% year-to-date. Consumer Discretionary (XLY) and Health Care (XLV) were the only sectors not to gain over 1% on the day. Oil & Gas Equipment & Services (XES) and Oil & Gas Exploration & Production (XOP) were the top performing industries rising 5.11% and 4.10%, respectively. Metals & Mining (XME) also returned +4.00%, providing a boost for Materials (XLB, +1.83%).

Themes: Global thematics were mixed yesterday as Advanced Materials (REMX, +3.04%) was the best performing segment. Digital Payments (IPAY) and Wind (FAN) both gained over 2% while Digital Infrastructure (SRVR), NextGen Transportation (DRIV), and Smart Infrastructure (GRID) were all up over 1.50%. FAN currently sits 18.38% below 52-Week Highs and has been the top performing thematic segment year-to-date, dropping 8.98%. Cannabis (MJ) dropped 1.84%, lagging other segments. Online Retail (IBUY), Multi-Theme (ARKK), and Disruptive Tech (ARKW) all posted modest losses.

Commodities & Yields: The 10-Year U.S. Treasury Yield increased on Monday finishing just below 2.87%. U.S. Aggregate Bonds (AGG) fell 33 bps, 20+ Year Treasury Bonds (TLT) fell 1.65%, and the U.S. Dollar (UUP) dropped 91 bps. Broad Commodities (DJP) finished higher by 1.82%, lifted by Industrial Metals (DBB, +96 bps), Agriculture (DBA, +90 bps), and Energy (DBE, +88 bps). Natural Gas (UNG) surged 8.44%, Wheat (WEAT) jumped 3.48%, and Lead (LD) climbed 3.73%.

5.22.2022

An overview of the broad U.S. Size & Style ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

• Over $10 billion in net inflows for large-caps while small-caps see net outflows again (-$1.2 billion)
• All sizes and styles down in YTD performance; nearly 20% seperates large-cap growth (laggard -27%) and large-cap value (leader -8%)
• iShares Morningstar Growth ETF (ILCG) lagging all size & style ETFs over past month (-16.46%)
• All categories at least 10% off of 52-week highs and are sitting near oversold technical levels (14-day RSI)

5.22.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: Major averages were mixed on Friday after a volatile week of trading as investors continued to weight recession concerns, sustained inflationary pressures, and weak retail earnings. The S&P 500 (SPY) added 4 bps, the Dow Jones Industrial Average (DIA) was flat, and the NASDAQ 100 (QQQ) declined 31 bps on the day. DIA fell for the 8th consecutive week down 2.81% while SPY and QQQ dropped for the 7th consecutive week dropping 3.01% and 4.39%, respectively. S&P 500 Low Volatility (SPLV, +53 bps) and S&P 500 Value (SPYV, +13 bps) led U.S. Factor strategies while S&P 500 Momentum (SPMO, -19 bps) and S&P 500 Pure Growth (RPG, -16 bps) lagged. All U.S. Factor strategies posted losses last week. Developed ex-U.S. Markets (EFA) rose 68 bps as Japan (EWJ) gained 1.28% and Emerging Markets (EEM) climbed 41 bps on strength from Brazil (EWZ, +2.44%). Both EFA and EEM were up over 1% last week.

Sectors: Health Care (XLV, +1.22%) and Real Estate (XLRE, +1.17%) led U.S. Sectors on Friday while Consumer Discretionary (XLY, -1.74%) and Industrials (XLI, -1.08%) underperformed. XLV was bolstered by solid gains from Pharmaceuticals (XPH, +1.42%) and Biotech (XBI, +1.34%). XLY and XLI both sit at 52-Week Lows as does Financials (XLF). Consumer Staples (XLP) returned +21 bps, but remains in oversold territory. Last week, Energy (XLE), XLV, and Utilities (XLU) were the only sectors in the green. XLP and XLY were the worst performers on the week down 8.12% and 7.82%, respectively. The iShares U.S. Infrastructure ETF (IFRA) led net inflows last week gathering $659 million.

Themes: Biotech (SBIO) was the top performing thematic segment on Friday climbing 2.03%. Digital Infrastructure (SRVR), Casinos & Gaming (BETZ), and Cyber Security (HACK) also each gaine dover 1.50% on the day. Industrial Revolution (ARKQ, -2.40%), Cannabis (MJ, -2.31%), and Disruptive Tech (ARKW, -2.16%) were weak. The Global X Blockchain ETF (BKCH) was the worst performing thematic ETF on Friday, declining 4.59%. Currently, BKCH is the only thematic ETF in oversold territory. On the week, themes were mixed with Solar (TAN) and Advanced Materials (REMX) both jumped over 8%. Cloud Computing (SKYY) was down 4.62% on the week. 

Commodities & Yields: Broad Commodities (DJP) fell 26 bps with WTI Crude Oil (WTI) higher by 1.33%, Gasoline (UGA) up 1.31%, Natural Gas (UNG) lower by 89 bps, and Wheat (WEAT) down 2.29%. The 10-Year U.S. Treasury Yield fell on Friday, finishing below 2.79%. The U.S. Dollar (UUP) was up 22 bps, U.S. Aggregate Bonds (AGG) added 30 bps, and 20+ Year Treasury Yield (TLT) climbed 1.14%.

5.20.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: Choppy, volatile session on Thursday that saw major averages decline once again as fears of a recession spurred by rate hikes by the Federal Reserve persisted. The Dow Jones Industrial Average (DIA) was lower by 75 bps, the S&P 500 (SPY) dropped 61 bps, and the NASDAQ 100 (QQQ) dipped 54 bps. Small-Caps outperformed with the Russell 2000 (IWM) rising 16 bps on the day. Growth-oriented pockets of the markets were strong as S&P 500 Pure Growth (RPG, +99 bps) and S&P 500 High Beta (SPHB, +65 bps) were the only U.S. Factor strategies to post gains. S&P 500 High Dividend (SPHD, -95 bps) and S&P 500 Low Volatility (SPLV, -78 bps) lagged. Emerging Markets (EEM) jumped 1.59% as China (MCHI) rose 2.46% and Developed ex-U.S. Markets (EFA, +96 bps) were lifted by South Korea (EWY, +1.93%)

Sectors: Materials (XLB, +71 bps), Health Care (XLV, +22 bps), and Consumer Discretionary (XLY, +7 bps) were the only sectors in positive territory yesterday. Consumer Staples (XLP) lost another 1.78% and lagged other sectors as investors continued to digest weak earnings results from Walmart and Target. Several Consumer Staples ETFs, including XLP, currently sit in oversold territory. Technology (XLK) also declined 1.10% despite solid returns from Internet (XWEB, +2.64%) and Software & Services (XSW, +2.35%). Industrials (XLI, -90 bps), and Financials (XLF, -66 bps) were also weak. XLI, XLK, and XLF all sit at 52-Week Lows. Metals & Mining (XME) climbed 1.61%, providing a boost for XLB.

Themes: All thematic segments, except for Connectivity (FIVG, -22 bps), posted gains yesterday led by Disruptive Tech (ARKW, +4.59%), Multi-Theme (ARKK, +4.52%), and Solar (TAN, +4.51%). Just 33.33% of TAN's  holdings are currently trading above relative 50-Day Moving Averages. Genomics (ARKG), Advanced Materials (REMX), FinTech (FINX), and Clean Energy (PBW) all rose over 3.45%.  The  KraneShares CSI China Internet ETF (KWEB) has gathered another $573 million in net inflows over the past week. Year-to-date, KWEB has seen $1.77 billion in net inflows, the highest amongst all thematic ETFs. Over the past year, KWEB  has gathered a staggering $8.16 billion in net inflows.

Commodities & Yields: The U.S. 10-Year Treasury Yield fell again finishing above 2.85% while the U.S. Dollar (UUP) dropped 1.04%, U.S. Aggregate Bonds (AGG) rose 25 bps, and TIPS Bonds (TIP) declined 35 bps. Broad Commodities (DJP) jumped 1.19% on Thursday as Industrial Metals (DBB) increased 3.54%. Nickel (JJN) rose 9.12% and Copper (JJC) added 3.11%. WTI Crude Oil (USO) increased 1.63% and Gasoline (UGA) was up 2.35%.

5.19.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: On Wednesday, broader markets sold off sharply on weak earnings results and recession fears amid rising interest rates. The NASDAQ 100 (QQQ) plunged 4.91%, the S&P 500 (SPY) fell 4.03%, and the Dow Jones Industrial Average (DIA) dropped 3.53%. QQQ and SPY now sit at 52-Week lowsAll U.S. Factor strategies were deep in the red with S&P 500 Pure Growth (RPG) and S&P 500 Pure Value (RPV) declining 4.55% and 3.48%, respectively. Emeging Markets (EEM) dipped 2.40% following 3% losses from South Africa (EZA) and Brazil (EWZ) while Developed ex-U.S. Markets (EFA, -2.39%) was dragged lower by Netherlands (EWN, -4.14%), Germany (EWG, -3.40%), and South Korea (EWY).

Sectors: All U.S. Sectors posted heavy losses yesterday with Consumer Discretionary (XLY, -6.54%) and Consumer Staples (XLP, -6.43%) hit the hardest. XLY's losses stemmed from Target (3.23% weight) which plummeted nearly 25% on Wednesday following disappointing earnings results. The earnings miss impacted other retail companies including Costco (9.23% weight in XLP) which dropped 12%. Retail (XRT) fell 8.29%. Technology (XLK) declined 4.58% while Industrials (XLI), Communication Services (XLC), and Materials (XLB) all lost over 3%. XLY and XLI now sit at 52-Week lows.

Themes: Global thematics were also weak with Online Retail (IBUY) dropping 6.21% and underperforming other thematic segments. Biotech (SBIO) and Cannabis (MJ) declined over 5.90% while Cloud Computing (SKYY), Blockchain (BLOK), Genomics (ARKG), Big Data (AIQ), Multi-Theme (ARKK), and Disruptive Tech (ARKW) all falling over 4%. Sustainability ETFs outperformed as Solar (TAN, -23 bps) and Wind (FAN, -57 bps) were the top performing segments for the day. Year-to-date, TAN is lower by 17.06% and FAN has lost 13.34%.

Commodities & Yields: Broad Commodities (DJP) finished lower by 1.73% as Energy (DBE) fell 2.18%. Gasoline (UGA) was down 4.77% and WTI Crude Oil (USO) dropped 2.24%. The U.S. Dollar (UUP) was up 51 bps, U.S. Aggregate Bonds (AGG) added 40 bps, and 20+ Year Treasury Bonds (TLT) gained 2.13%. The U.S. 10-Year Treasury Yield fell and finished below 2.89%.

5.18.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: U.S. markets rallied yesterday amid mixed retail earnings results, higher-than-expected retail sales data for April, and consistent rhetoric by Fed Chairman Jerome Powell in his latest speech. The NASDAQ 100 (QQQ) jumped 2.59%, the S&P 500 (SPY) rose 2.06%, and the Dow Jones Industrial Average (DIA) gained 1.34%. Mid-Caps (IJH) and Small-Caps (IJR) outperformed, rising 3.01% and 2.98%, respectively. All U.S. Factor strategies increased with growth-oriented pockets of the markets recovering from Monday’s losses. S&P 500 Pure Growth (RPG, +2.79%) outpaced S&P 500 Pure Value (RPV, +2.32%) while S&P 500 High Beta (SPH) added 3.38%. Emerging Markets (EEM, +2.46%) were higher on strength from China (MCHI, +3.15%) and Developed ex-U.S. Markets (EFA, +1.86%) benefitted from Netherlands (EWN, +3.48%).

Sectors: Consumer Staples (XLP, -69 bps) was the only U.S. Sector to post losses on Tuesday as Walmart (4.35% weight) plunged over 11% after disappointing earnings results. Technology (XLK, +2.90%), Materials (XLB, +2.83%), Financials (XLF, +2.68%), and Consumer Discretionary (XLY, +2.52%) outpaced other sectors while Industrials (XLI) and Communication Services (XLC) each climbed over 2%. On the industry level, Semiconductors (XSD) rose 4.66%, boosting XLK, and Metals & Mining (XME) jumped 4.25%, lifting XLB. Banks (KBE, +3.88%) and Regional Banks (KRE, +3.66%) were also strong and aided XLF. Energy (XLE) increased 1.16% and now sits at 52-Week Highs.

Themes: Global thematics posted solid gains yesterday led by Clean Energy (PBW, +6.67%), Advanced Materials (REMX, +5.93%), and Solar (TAN, +5.35%). All segments were up over 1.25% with the majority adding over 3%. Robotics & AI (ARKQ) and Multi-Theme (ARKK) each climbed over 5%. Only one thematic ETF declined yesterday: the Advisor Shares Pure US Cannabis ETF (MSOS) which sunk 1.27%. The top performing thematic ETF on the day was the Bitwise Crypto Industry Innovators ETF (BITQ) which surged 7.20%.

Commodities & Yields: The U.S. Dollar (UUP) fell 83 bps, U.S. Aggregate Bonds (AGG) dropped 55 bps, and 20+ Year Treasury Bonds (TLT) declined 1.21% as the 10-Year Treasury Yield rose, finishing above 2.98%. Broad Commodities (DJP) finished relatively flat on the day as Energy (DBE, -2.09%) fell on decreases from Gasoline (UGA, -2.66%) and WTI Crude Oil (USO, -2.41%). Natural Gas (UNG) rose 3.80%.

5.17.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: On Monday, the NASDAQ 100 (QQQ) fell another 1.16% and the S&P 500 (SPY) declined 41 bps amid weak investor sentiment stemming from inflationary pressures and the start of the Federal Reserve’s interest rate hike program. The Dow Jones (DIA) outperformed, rising 17 bps. Growth-oriented pockets of the markets were weak with S&P 500 High Beta (SPHB, -1.52%) and S&P 500 Pure Growth (RPG, -1.31%) lagging other U.S. Factor strategies. S&P 500 High Dividend (SPHD, +81 bps) and S&P 500 Pure Value (RPV, +31 bps) led the way. Developed ex-U.S. Markets (EFA) rose 9 bps as the U.K. (EWU) gained 1.17% and Emerging Markets (EEM) finished lower by 40 bps on as Asian markets declined. 

Sectors: Energy (XLE) climbed 2.64% yesterday, handily outpacing other U.S. Sectors. XLE was lifted by Oil & Gas Equipment & Services (XES, +3.52%) and Oil & Gas Exploration & Production (XOP, +2.28%). Health Care (XLV, +74 bps), Consumer Staples (XLP, +45 bps), and Utilities (XLU, +31 bps) were the only other sectors to post gains. Consumer Discretionary (XLY) was the worst performer, falling 2.16%. Technology (XLK), Financials (XLF), and Real Estate (XLRE) all dropped over 80 bps on the day. XLF is approaching oversold territory and sits just 61 bps above 52-Week lows. Internet (XWEB) underperformed other industries, falling another 3.60%, dragging XLK. 

Themes: Most thematic segments were in the red on Monday with Multi-Theme (ARKK, -5.92%) and Disruptive Tech (ARKW, -5.71%) hit the hardest. From its peak on February 15, 2021, ARKK has plummeted nearly 72% and 0% of its holdings are currently trading above relative 50-Day Moving Averages. Blockchain (BLOK), Cloud Computing (SKYY), and Genomics (ARKG) all fell more than 3.00%. BLOK entered oversold territory joining two other Blockchain ETFs (BKCH, BITQ). Cannabis (MJ) led the way adding 2.09% followed by Advanced Materials (REMX, +1.65%) and Wind (FAN, +99 bps). Over the past year, REMX has jumped 23.22%, the only thematic segment to post gains in the period. 

Commodities & Yields: The U.S. 10-Year Treasury fell below 2.90% yesterday while the U.S. Dollar (UUP) dropped 39 bps, U.S. Aggregate Bonds (AGG) rose 22 bps, and 20+ Year Treasury Bonds (TLT) dipped 10 bps. Broad Commodities (DJP) jumped 1.95% on strength in Energy (DBE, +1.17%) and Precious Metals (DBP, +1.21%). Natural Gas (UNG) was up 4.30% and WTI Crude Oil (USO) climbed 2.25%. Palladium (PALL) rose 4.99% and Silver (SLV) increased 2.63%.

5.16.2022

Major macroeconomic releases for the prior and upcoming weeks accompanied by historical macroeconomic data and chart books

• Consumer Price Index (CPI): The Consumer Price Index (CPI), a key inflationary measure, continued to rise in April after surging in March. Year-over-year, the CPI has shot up 8.3% nearing the highest levels in 40 years
• EIA Petroleum Status Report: For the week ended May 6, U.S. crude oil refinery inputs increased 230K barrels per day to 15.7 million barrels, U.S. crude oil and gasoline inventories fell while distillate inventories increased. The national average retail regular gasoline price rose to $4.328
• Jobless Claims: Initial jobless claims rose 1K to 203K last week while continuing claims fell another 44K to the lowest levels since January 3, 1970
• Producer Price Index (PPI): The Producer Price Index (PPI) increased 0.5% in April, in line with consensus estimates. Year-over-year, the index has climbed 11% further illustrating inflationary pressures
• Import & Export Prices: In April, Import prices were unchanged after rising nearly 3.0% in March while Export prices rose just 0.6% after increasing 4.1% in March
• Consumer Sentiment:Spurred by current economic conditions and consumer expectations, consumer sentiment fell 9.4% month-over-month in April. Consumer sentiment has fallen nearly 30% since April 2021

5.16.2022

An overview of the broad U.S. Size & Style ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

• Four week streak of consecutive net outflows if broken; net inflows across all sizes (but $714 million out for small-cap value)
• Large-cap growth worst performing size and style category over past month (down 13.17%) and now down over 24% YTD
• Vanguard Value ETF (VTV) best performing size and style ETF over past month (down 5.72%)
• Equities see bounce at end of week but technical outlook still not favorable

5.15.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: U.S. markets finished up sharply on Friday following heavy losses earlier in the week. A slew of retail earnings results are scheduled to be released this week along with several key housing data releases and a speech from Federal Reserve Chairman Jerome Powell. The NASDAQ 100 (QQQ) jumped 3.71%, the S&P 500 (SPY) rose 2.39%, and the Dow Jones Industrial Average (DIA) gained 1.44%. QQQ, SPY, and DIA all declined over 2% last week. All U.S. Factor strategies increased on Friday led by S&P 500 High Beta (SPHB, +4.87%) and S&P 500 Pure Growth (RPG, +4.41%). However, all factors ended the week in the red. Emerging Markets (EEM) and Developed ex-U.S. Markets (EFA) increased 2.77% and 2.78%, respectively, on Friday. China (MCHI, +4.03%) provided a boost for EEM and South Korea (EWY, +4.48%) lifted EFA.

Sectors: All U.S. Sectors were in the green Friday with Consumer Discretionary (XLY), Energy (XLE), and Technology (XLK) all rising over 3%. Internet (XWEB, +7.14%), Semiconductors (XSD, +6.73%), and Software & Services (XSW, +5.81%) were the top performing industries and bolstered XLK. XLE sits just 2.58% from 52-Week Highs while XLY and XLK remain more than 20% below relative 52-Week Highs. Real Estate (XLRE) and Communication Services (XLC) were both up over 2% on the day. Both XLRE and XLC are currently trading well below relative 50-Day and 200-Day Moving Averages. Biotech (XBI) climbed 5.68% on Friday and gathered $450 million in net inflows over the past week.

Themes: GA sea of green for global themes on Friday with all segments adding over 1.70% and the majority of segments shooting up over 4.50%. Multi-Theme (ARKK) and Disruptive Tech (ARKW) each climbed over 11% on the day and outpaced other segments. Clean Energy (PBW) and Solar (TAN) also jumped 8.62% and 7.15%, respectively. Despite Friday's sizeable gains, all thematic segments, with the exception of eSports& Video Games (ESPO) finished last week lower. The worst performring segment on the week was Blockchain (BLOK) which fell nearly 13%. The worst performing thematic ETF on Friday was the KraneShares SSE STAR Market 50 Index ETF (KSTR) which gained just 47 bps. 

Commodities & Yields: Broad Commodities (DJP) ended Friday up 1.66% Gasoline (UGA) rose 3.62% and WTI Crude Oil (USO) added 2.59%. The U.S. Dollar (UUP) fell 29 bps, U.S. Aggregate Bonds (AGG) lost 43 bps, and 20+ Year Treasury Bonds (TLT) declined 1.48%. The U.S. 10-Year Treasury Yield was relatively steady on Friday and finished just below 2.94%.

5.13.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: Another volatile session on Thursday as investors weighed the Producer Price Index release which showed an 11% year-over-year increase highlighting significant inflationary pressures. U.S. markets finished down slightly with the Dow Jones Industrial Average (DIA) dipping 26 bps, the NASDAQ 100 (QQQ) falling 24 bps, and the S&P 500 (SPY) dropping 10 bps. Small-Caps (IJR, +1.28%) and Mid-Caps (IJH, +98 bps) outperformed. Growth-oriented pockets of the markets were strong with S&P 500 Pure Growth (RPG) rising 81 bps. Other U.S. Factor strategies were mixed with S&P 500 Enhanced Value (SPVU, -63 bps) and S&P 500 Momentum (SPMO, -49 bps) lagging. Developed ex-U.S. Markets (EFA) were down 24 bps and Emerging Markets (EEM) dropped 66 bps as Indonesia (EIDO) lost 3.41% on the day.

Sectors: Communication Services (XLC) added 1.09% and led other U.S. Sectors yesterday. Health Care (XLV, +97 bps), Real Estate (XLRE, +74 bps), and Consumer Discretionary (XLY, +69 bps) were also bright spots. Technology (XLK) and Utilities (XLU) each declined over 1% on the day while Financials (XLF) lost 75 bps. XLK and XLF are the onyl two sectors currently sitting at 52-Week Lows. On the industry level, Internet (XWEB, +4.26%) led the way while Homebuilders (XHB), Retail (XRT), and Biotech (XBI) each climbed over 3%. Metals & Mining (XME) fell 2.15%, dragging Materials (XLB, -18 bps) lower.

Themes: Global themes were mixed yesterday with Multi-Theme (ARKK), Disruptive Tech (ARKW), and Genomics (ARKG) all surging over 5% and outpacing other thematic segments. Clean Energy (PBW) and Online Retail (IBUY) also both climbed over 3% on the day. Year-to-date, IBUY has plunged nearly 50% and currently sits in oversold territory. Advanced Materials (REMX) also declined 2.26% and was the worst performing segment. After outperforming on Wednesday, Space (UFO) dropped 2.27% and it now sits at 52-Week Lows. 

Commodities & Yields: The U.S. 10-Year Treasury Yield declined yesterday finishing just above 2.87%. U.S. Aggregate Bonds (AGG) added 18 bps, 20+ Year Treasury Bonds (TLT) dropped 19 bps, and the U.S. Dollar (UUP) jumped 86 bps. Broad Commodities (DJP) finished lower by 76 bps on weakness from Precious Metals (DBP, -1.95%) and Industrial Metals (DBB, -1.89%). Energy (DBE, +81 bps) was lifted by WTI Crude Oil (USO) and Gasoline (UGA) which rose 1.34% and 3.73%, respectively.

5.12.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: Major averages tumbled again on Wednesday as growth-oriented pockets of the markets remain under pressure. The Consumer Price Index (CPI) report was also released yesterday and showed that inflation continued to accelerate in April providing headwinds for markets. The Dow Jones Industrial Average (DIA, -1.05%) fell for the 5th consecutive session while the NASDAQ 100 (QQQ) and the S&P 500 (SPY) declined 2.97% and 1.59%, respectively. S&P 500 Low Volatility added just 9 bps and was the only U.S. Factor strategy to post gains. S&P 500 High Beta (SPHB, -3.05%) and S&P 500 Growth (SPYG) lagged. Emerging Markets (EEM) dipped 70 bps while Developed ex-U.S. Markets (EFA, -59 bps) were dragged by Japan (EWJ) and South Korea (EWY) which each fell 1.09%.

Sectors: Energy (XLE, +1.34%), Utilities (XLU, +72 bps), and Materials (XLB, +5 bps) were the only sectors in positive territory yesterday while Consumer Discretionary (XLY) and Technology (XLK) each dropped over 3%. XLK was dragged lower by sizeable losses from Internet (XWEB, -5.40%) and Semiconductors (XSD, -4.27%). XLY and XLK now sit at 52-Week Lows and XLY continues to fall further into oversold territory. Communication Services (XLC) also declined 1.81% and currently sits at 52-Week Lows. After outpacing all industries on Tuesday, Biotech (XBI) reversed course, plunging 7.22% on the day. 

Themes: Another bleak session for global themes as Space (UFO, +1.00%) was the only segment to post gains on the day. The majority of thematic segments lost over 2%. Disruptive Tech (ARKW) and Multi-Theme (ARKK) both plummeted over 10% while Genomics (ARKG), Clean Energy (PBW), Blockchain (BLOK), and Biotech (SBIO) each fell over 7%. Only four thematic ETFs were in the green yesterday led by the KraneShares SSE STAR Market 50 Index ETF (KSTR) which rose 2.69%. KSTR has outperformed most thematic ETFs over the past month, declining just over 4%, however, it is currently trading well below its 50-Day and 200-Day Moving Averages.

Commodities & Yields: Broad Commodities (DJP) jumped 3.50% yesterday as Natural Gas (UNG) added another 6.41%, WTI Crude Oil (USO) climbed 4.90%), and Base Metals (DBB) rose 1.88%). The U.S. Dollar (UUP) was up 11 bps, U.S. Aggregate Bonds (AGG) increased 37 bps, and 20+ Year Treasury Bonds (TLT) gained 1.93%. The 10-Year U.S. Treasury Yield dropped sharply and finished below 2.92%.

5.11.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: On Tuesday, U.S. markets were mixed after a volatile session as treasury yields eased. The NASDAQ 100 (QQQ, +1.21%) and the S&P 500 (SPY, +23 bps) bounced back from three consecutive days of losses while the Dow Jones Industrial Average (DIA, -24 bps) fell for the 4^th straight day. QQQ and SPY remain well below relative 50-Day and 200-Day Moving Averages. U.S. Factor strategies were also a mixed bag with S&P 500 Growth (SPYG, 91 bps) and S&P 500 High Beta (SPHB, +69 bps) recovering slightly. S&P 500 High Dividend (SPYD) and S&P 500 Low Volatility (SPLV) lagged, declining 1.21% and 90 bps, respectively. Developed ex-U.S. Markets (EFA) rose 75 bps while Emerging Markets (EEM, +48 bps) was higher on strength from China (MCHI, +1.46%).

Sectors: Technology (XLK) outpaced other U.S. Sectors yesterday rising 1.52% despite losses from Software & Services (XSW, -1.03%). Energy (XLE, +91 bps), Communication Services (XLC, +45 bps), and Health Care (XLV, +36 bps) were the only other sectors in positive territory on the day. Real Estate (XLRE, -2.22%) and Utilities (XLU, -1.23%) underperformed. XLRE currently sits at 52-week lows as does Financials (XLF), Consumer Discretionary, and Industrials (XLI). Several Real Estate and Real Estate Investment Trust (REIT) ETFs are well into oversold territory, including XLRE. Biotech (XBI) was the top performing industry, jumping 5.17%. 

Themes: Thematic segments were split on Tuesday with 3D Printing (PRNT, -2.55%), FinTech (FINX, -2.26%), and Digital Infrastructure (SRVR, -1.88%) lagging. PRNT entered oversold territory. Biotech (SBIO) was the top performing segment surging over 5.5% on the day. SBIO is trading more than 48% below 52-week highs and is down over 38% year-to-date. Genomics (ARKG) also jumped 3.11%. Of the 28 thematic segments, 13 currently sit at 52-week lows, illustrating the recent weakness for global themes. 

Commodities & Yields: U.S. Aggregate Bonds (AGG) increased 30 bps and TIPS Bonds (TIP) fell 45 bps as the U.S. 10-Year Treasury Yield finished below 3.00%. The U.S. Dollar (UUP) also rose 22 bps. Broad Commodities (DJP) dipped 38 bps as Energy (DBE) and Precious Metals (DBP) both declined around 1.30% and Agriculture (DBA) increased 70 bps. WTI Crude Oil (USO) declined 2.66% and Natural Gas (UNG) added 1.97% while Silver (SLV) fell 2.40% and Wheat (WEAT) rose 2.15%.

5.10.2022

An overview of the U.S. Factor ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

• Momentum/Growth ETFs continue to underpeform other U.S. Factor strategies declining over 12.5% on average over the past month. Size ETFs have dropped 9.13% on average and Quality ETFs have fallen 8.61% on average on the month
• Dividend ETFs gathered another $627 million in net inflows over the past week while Momentum/Growth ETFs saw $126 million in net outflows
• All U.S. Factor ETFs have posted losses in the past month. The top performer has been the ALPS Sector Dividend Dogs ETF (SDOG) which is down just 1.37%. Value-oriented SDOG is up 3.42% thus far in 2022. The worst performer in the last month has been the Alpha Intelligent - Large Cap Growth ETF (AILG) which has fallen 25.68%. Growth-oriented AILG is down 36.53% year-to-date 
• S&P 500 Equal Weight (RSP), S&P 500 Quality (SPHQ), S&P 500 Low Volatility (SPLV), S&P 500 Value (SPVU), and S&P 500 Momentum (SPMO) are each currently trading below relative 50-Day and 200-Day Moving Averages. S&P 500 Dividend (SPYD) is currently trading below its 50-Day Moving Average, but above its 200-Day Moving Average

5.10.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: Broader markets retreated for the third consecutive session on Monday as the U.S. 10-Year Treasury Yield remained above 3.00%. The NASDAQ 100 (QQQ) lost 3.91%, the S&P 500 (SPY) fell 3.20%, and the Dow Jones Industrial Average (DIA) declined 1.97%. Growth-oriented pockets of the markets lagged with S&P 500 High Beta (SPHB, -5.81%) and S&P 500 Pure Growth (RPG, 4.72%) underperforming other U.S. Factor strategies. S&P 500 Momentum (SPMO) also dropped 3.88% and S&P 500 Pure Value (RPV) dipped 2.50% on the day. Year-to-date, RPV is up 1.06% and has outpaced RPG by over 28%. Developed ex-U.S. Markets (EFA) fell just over 3% on weakness from Canada (EWC, -3.88%) while Emerging Markets (EEM, -2.88%) were dragged by China (MCHI, -3.66%). EFA and EEM currently sit at 52-Week lows.

Sectors: Energy (XLE) plunged 8.27% yesterday as all U.S. Sectors posted losses. Oil & Gas Equipment & Services (XES) and Oil & Gas Exploration & Production (XOP) each fell over 10%. Real Estate (XLRE) and Consumer Discretionary (XLY) both declined over 4% while Technology (XLK) and Materials (XLB) dropped 3.87% and 3.16%, respectively. XLRE and XLY both entered oversold territory and are trading well below relative 50-Day and 200-Day Moving averages. Metals & Mining (XME) lost 6.26%, pulling XLB lower. Consumer Staples (XLP) was the top performing sector dipping just 4 bps. Internet (XWEB) declined another 6.61% and is now down 43.36% thus far in 2022.

Themes: Another brutal day for global themes yesterday with the majority of thematic segments dropping over 5%. Disruptive Tech (ARKW) fell 11.07%, Multi-Theme (ARKK) was down 9.86%, and Genomics (ARKG) was lower by 9.50% on continued weakness. In the last month, ARKW, ARKKK, and ARKG are all down over 32% and each has fallen over 50% year-to-date. Blockchain (BLOK) also dipped 10.05% and Clean Energy (PBW, -9.68%) posted heavy losses. BLOK is in oversold territory and only 4.65% of its holdings are trading above relative 50-Day Moving Averages. The Three worst performing thematic ETFs on the day were Blockchain ETFs, all declining over 16% (BITQ, DAPP, BKCH).

Commodities & Yields: The U.S. 10-Year Treasury Yield traded above 3.10% intraday yesterday before finishing just above 3.03%. U.S. Aggregate Bonds (AGG) rose 49 bps, 20+ Year Treasury Bonds (TLT) added 88 bps, and the U.S. Dollar (UUP) was relatively flat. Broad Commodities (DJP) declined 5.37% with Energy (DBE) falling over 5.50%. Natural Gas (UNG) plummeted over 12% and WTI Crude Oil (USO) was also down over 6.75%. Nickel (JJN), Tin (JJT), and Lead (LD) all fell over 6% on the day.

5.9.2022

Major macroeconomic releases for the prior and upcoming weeks accompanied by historical macroeconomic data and chart books

• ISM Manufacturing: The April Manufacturing PMI decreassed for the 23rd consecutive month to the lowest levels since July 2020
• Job Openings and Labor Turnover (JOLTS): Job openings surged to a record high of 11.55 million in March while hires were little changed at 6.7 million. Notably, quits climbed to 4.5 million, also a record high in the month
• EIA Petroleum Status Report: For the week ended April 29, U.S. crude oil refinery inputs decreased 218K barrels per day to 15.5 million barrels, U.S. crude oil and gasoline inventories rose while distillate inventories decreased. The national average retail regular gasoline price rose to $4.182
• Jobless Claims: Initial jobless claims jumped to 200K last week well above consensus estimates of 178K while continuing claims fell another 19K to the lowest levels since January 17, 1970
• ADP Employment: Following a sizeable increase in March, ADP private payrolls increased by 247K in April with the Service-Providing Sector adding over 200K jobs, largely in Leisure & Hospitality

5.9.2022

An overview of the broad U.S. Size & Style ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

• Fourth consecutive week of net outflows for Size & Style ETFs; Small-caps only size to see net inflows
• Value outperforming growth across all sizes YTD; Large-cap value leading in YTD performance (down 4.72%)
• Avantis U.S. Large Cap Value ETF (AVLV) best performer over past month (down 2.44%)
• All size and style categories trading below 50 and 200 day moving averages.

5.9.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: The selloff continued on Friday, but not as severe as Thursday's losses, as the NASDAQ 100 (QQQ) was down 1.20%, the S&P 500 (SPY) dropped 60 bps, and the Dow Jones Industrial Average (DIA) fell 35 bps. DIA dropped 19 bps last week, the sixth consecutive week of negative returns, while QQQ and SPY were down for the fifth consecutive week, losing 1.28% and 16 bps, respectively. QQQ and SPY currently sit at 52-Week lows. Mid-Caps (IJH) and Small-Caps (IJR) underperformed on Friday each falling over 1%. U.S. Factor strategies were mixed on the day led by S&P 500 (SPHD, +48 bps) and S&P 500 Enhanced Valure (SPVU, +23 bps). S&P 500 Pure Growth (RPG) lagged, declining 1.41%. SPVU was the top performing Factor strategy last week adding 2.79%. Emerging Markets (EEM, -1.37%) were dragged by China (MCHI, -2.96%) and South Africa (EZA, -2.48%) while Developed ex-U.S. Markets (EFA) dipped 97 bps. 

Sectors: Energy (XLE) handily outpaced other sectors on Friday and last week. XLE gained 2.98% on Friday and surged over 10% last week. XLE currently sits at 52-Week highs. The defensive Utilities (XLU, +80 bps) and Consumer Staples (XLP, +10 bps) sectors were the only other sectors to post gains on Friday. Communication Services (XLC) fell 2.06% on the day while Materials (XLB), Consumer Discretionary (XLY), and Real Estate (XLRE) all declined over 1%. XLY currently sits at 52-week lows. Biotech (XBI, -5.04%) and Internet (XWEB, -4.95%) were the worst performing industries. Pharmaceuticals (XPH) lost 2.70% on Friday and entered into oversold territory. 

Themes: All thematic segments posted losses on Friday with the majority falling over 2%. Disruptive Tech (ARKW), Online Retail (IBUY), Genomics (ARKG), and Biotech (SBIO) all plunged over 4.50% on the day while Mulit-Theme (ARKK), FinTech (FINX), and Cyber Security (HACK) all declined over 4%. HACK entered into oversold territory. Clean Energy (PBW) and Solar (TAN) each fell over 3% on Friday but were two of the three segments to post gains last week, joined by Connectivity (FIVG). Only three thematic ETFs were in the green on Friday with the AdvisorShares Pure US Cannabis ETF (MSOS, +5.42%) outperforming. MSOS is down over 42% year-to-date.

Commodities & Yields: The U.S. Dollar (UUP) was up 18 bps, U.S. Aggregagte Bonds (AGG) dropped 42 bps, and 20+ Year Treasury Bonds (TLT) fell 1.47% after the U.S. 10-Year Treasury Yield finished at 3.13%. Broad Commodities (DJP) dropped 1.54% as Natural Gas (UNG) plummeted over 8%, Palladium (PALL) dropped 6.65%, and Agriculture (DBA) fell 1.22%.

5.6.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: Following sizeable gains stemming from the 50 bps interest rate hike by the Federal Reserve on Wednesday, U.S. markets plunged yesterday with the NASDAQ 100 (QQQ) falling 5.04%, the S&P 500 (SPY) declining 3.55%, and the Dow Jones Industrial Average (DIA) losing 3.05%. Just 1.31% of QQQ posted gains on Thursdday: Booking Holdings (0.69% weight) and Charter Communications (0.62% weight) . Small-Caps also retreated with the Russell 2000 (IWM) falling 4.06%. The bloodbath extended to U.S. Factor as all strategies dipped more than 1.20%. S&P 500 Growth (SPYG) and S&P 500 High Beta (SPHB) were battered, dropping 4.83% and 4.59%, respectively. Emerging Markets (EEM) fell 3% on weakness from South Africa (EZA, -6.01%) and China (MCHI, -5.04%). Developed ex-U.S. Markets (EFA) also fell over 3%.

Sectors: All U.S. Sectors posted losses over 1% yesterday. Consumer Discretionary (XLY, -5.60%) and Technology (XLK, -4.81%) were hit the hardest dragged lower by FAANG stocks. Apple (22.98% weight in XLK) and Microsoft (22.24% weight in XLC) declined 5.57%% and 4.35%, respectively, while Amazon (19.66% weight in XLY) lost 7.51% yesterday.  XLY now sits at 52-Week lows. Communication Services (XLC) and Materials (XLB) each fell over 3% while Financials (XLF), Industrials (XLI), and Real Estate (XLRE) were all down over 2.50%. XLC now sits nearly 30% below 52-week highs. Internet (XWEB) was the worst performing industry on the day plunging 7.24%.

Themes: Horrific day for global themes on Thursday with all segments down over 2.50%. The usual suspects, Multi-Theme (ARKK, -8.90%), Disruptive Tech (ARKW, -8.68%), and Genomics (ARKG, -7.90%), plummeted on growth-oriented tech weakness. 0% of ARKK's holdings are currently trading above relative 50-Day Moving Averages Biotech (SBIO), Cloud Computing (SKYY), Blockchain (BLOK), FinTech (FINX), Online Retail (IBUY), Cannabis (MJ), and Robotics & AI (ARKQ) all fell over 6% on the day. The Goldman Sachs Future Consumer Equity ETF (GBUY) and the Goldman Sachs Future Health Care Equity ETF (GDOC) each entered into oversold territory after falling 5.06% and 3.86%, repectively. 

Commodities & Yields: Broad Commodities (DJP) ended the day up 13 bps after Natural Gas (UNG) added 3.76%. Nickel (JJN) dipped 6.27% on the day. The U.S. Dollar (UUP) rose 84 bps while U.S. Aggregate Bonds (AGG) dropped 99 bps and 20+ Year Treasury Bonds (TLT) fell 2.74%. The U.S. 10-Year Treasury Yield shot up above 3.10% on Thursday before finishing at 3.04%.

5.5.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: After the Federal Reserve announced a 50 basis point interest rate increase, the largest rate hike since 2000, U.S. markets surged higher on Wednesday. Fed Chairman Powell also indicated the central bank was not considering more aggressive rate hike in future meetings, indicating the Fed’s confidence in the U.S. economy, which was a catalyst for major averages. The NASDAQ 100 (QQQ) and the S&P 500 (SPY) both jumped over 3% on the day while the Dow Jones Industrial Average (DIA) added 2.82%. S&P 500 Pure Growth (RPG) gained 4.08% and led U.S. Factor strategies, all of which were in positive territory. S&P 500 Pure Value (RPV) also climbed 3.17%.  Developed ex-U.S. Markets (EFA) gained 1.75% on strength in Germany (EWG, +2.38%) and Australia (EWA, +2.34%). Emerging Markets (EEM) rose 1.08% as Brazil (EWZ) jumped 2.86%.

Sectors: All U.S. Sectors saw positive returns yesterday with Energy (XLE) surging 4.15% as Oil & Gas Exploration & Production (XOP) and Oil & Gas Equipment & Services (XES) both jumped over 4% on the day. XLE now sits at 52-Week highs. Technology (XLK), Communication Services (XLC), and Materials (XLB) all climbed over 3%. XLK was aided by Semiconductors (XSD) which increased 3.80% while Metals & Mining (XME, +2.94%) drove positive performance for XLB, which is not within 2.33% of 52-Week highs. Consumer Discretionary (XLY) and Industrials (XLI) also each rose close to 3%. The top performing U.S. Sector & Industry ETF on the day was the iShares U.S. Home Construction ETF (ITB, +4.75%). ITB is down 24.57% thus far in 2022. 

Themes: Sea of green for global themes on Wednesday led by Sustainability ETFs for the second consecutive day. Clean Energy (PBW) and Solar (TAN) were the top performing segments, each adding over 5%. Multi-Theme (ARKK) was also up 5.13% while Disruptive Tech (ARKW) and Genomics (ARKG) gained 4.70% and 4.35%, respectively. Only two thematic ETFs posted losses yesterday: the AdvisorShares Pure US Cannabis ETF (MSOS, -34 bps) and the ETFMG Travel Tech ETF (AWAY, -5 bps). MSOS continues to fall further into oversold territory. The only three thematic ETFs currently in oversold territory are Cannabis ETFs (MSOS, YOLO, CNBS). The First Trust Nasdaq Clean Edge Green Energy Index Fund (QCLN, +6.19%) and the ALPS Clean Energy ETF (ACES, +5.98%) were the best performers on the day. 

Commodities & Yields: The U.S. 10-Year Treasury Yield dropped, finishing below 2.95% while the U.S. Dollar (UUP) fell 83 bps. U.S. Aggregate Bonds (AGG) increased 64 bps and TIPS Bonds (TIP) were higher by 78 bps. Broad Commodities (DJP) rose 3.25% on Wednesday as Energy (DBE) surged 4.14% and Industrial Metals (DBB) climbed 2.50%. Natural Gas (UNG) surged over 8.25%, Gasoline (UGA) added 4.33%, and WTI Crude Oil (USO) jumped 4.60%.

5.4.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: Major averages climbed for the second consecutive session on Tuesday despite a looming potential interest rate hike by the Federal Reserve. The central bank is widely expected to increase rates by 50 bps on Wednesday in addition to announcing the beginning of the unwinding of its $9 trillion balance sheet by $95 billion per month starting in June. The S&P 500 (SPY) added 46 bps, the Dow Jones Industrial Average (DIA) gained 15 bps, and the NASDAQ 100 (QQQ) was up 11 bps. Small-Caps (IJR, +1.07%) and Mid-Caps (IJH, +1.01%) outperformed. All U.S. Factor strategies were higher yesterday with strength from S&P 500 Enhanced Value (SPVU, +1.67%), S&P 500 High Dividend (SPYD, +1.41%), and S&P 500 Pure Growth (RPG, +1.20%). Developed ex-U.S. Markets (EFA) gained 74 bps, led by Hong Kong (EWH, +1.64%), and Emerging Markets (EEM) increased 73 bps, aided by South Africa (EZA, +2.11%) and Brazil (EWZ, +1.71%).

Sectors: Energy (XLE) handily outpaced other sectors yesterday rising 2.80% while Financials (XLF), Real Estate (XLRE), and Materials (XLB) each climbed over 1%. XLE was lifted by Oil & Gas Exploration & Production (XOP, +4.70%) and Oil & Gas Equipment & Services (XES, +3.49%). XLE now sits just 3.12% from 52-Week Hoighs and is 71.41% above 52-Week Lows. Banks (KBE) and Regional Banks (KRE) rose 1.60% and 1.39%, respectively, boosting XLF. Currently, only 6.06% of XLF's holdings are trading above relatiave 50-Day Moving Averages. Consumer Discretionary (XLY, -25 bps) and Consumer Staples (XLP, -29 bps) were the only two sectors in negative territory on Tuesday. Software & Services (XSW) fell 1.21% and lagged other industries.

Themes: Global themes were mixed on the day led by Sustainability ETFs. Solar (TAN, +3.25%) and Clean Energy (PBW, +2.07%) were the top performing thematic segments while Wind (FAN) also added 1.30%. Despite solid recent performance, TAN has seen $71 million in net outflows over the past week and $313 million in net outflows over the past month. Advanced Materials (REMX) also shot up 1.67%. Online Retail (IBUY) was the worst performing segment, declining 2.22%, and Cloud Computing (SKYY) also dipped 1.45%. Year-to-date, ONLN has dropped 31.66% while SKYY has lost 26.49%. 

Commodities & Yields: U.S. Aggregate Bonds (AGG) increased 23 bps, U.S. 20+ Year Treasury Bonds (TLT) rose 67 bps, and the U.S. Dollar (UUP) dipped 18 bps as the U.S. 10-Year Treasury Yield was relatively steady finishing just below 2.98% on Tuesday. Broad Commodities (DJP) declined 65 bps as Energy (DBE) fell 1.75% and Industrial Metals (DBB) dropped 98 bps. Natural Gas (UNG) climbed 3.04% and WTI Crude Oil (USO) fell 2.16%.

5.3.2022

Breakdown of the previous day's market action through the lens of ETFs:

Equities: Volatility continued on Monday as U.S. markets bounced back from Friday's heavy losses, led by Large-Cap Growth oriented pockets of the markets. The U.S. 10-Year Treasury Yield also touched above 3.0% intraday yesterday for the first time since 2018. The NASDAQ 100 (QQQ) jumped 1.67%, outpacing the S&P 500 (SPY) and the Dow Jones Industrial Average (DIA) which gained 60 bps and 32 bps, respectively. S&P 500 High Beta (SPHB, +1.98%) and S&P 500 Pure Growth (RPG, +1.90%) led U.S. Factor strategies while S&P 500 Low Volatility (SPLV, -1.09%) lagged. Developed ex-U.S. Markets (EFA) and Emerging Markets (EEM) were down slightly on the day. 

Sectors: U.S. Sectors were mixed yesterday as Communication Services (XLC, +2.76%) outperformed. Energy (XLE, +1.60%), Technology (XLK, +1.52%), and Consumer Discretionary (XLC, +1.46%) all posted healthy gains. XLK received a boost from Internet (XWEB, +4.01%) and Semiconductors (XSD, +3.81%). Real Estate (XLRE) declined 2.60% and was the worst performing sector. XLRE is currently trading over 4% below its 50-Day and 200-Day Moving Averages and sits 12.39% below 52-Week Highs. Consumer Staples (XLP) and Utilities (XLU) each lost over 1% on Monday. XLP is within 5% of 52-Week Highs. 

Themes: The majority of thematic segments added over 1.50% on Monday led by Multi-Theme (ARKK, +6.37%), Disruptive Tech (ARKW, +5.23%), and Genomics (ARKG, +5.18%). ARKK has gathered another $248 million in net inflows over the past week despite brutal April performance. Biotech (SBIO) and Casinos & Gaming (BETZ) also rose over 3.50% and Cannabis (MJ) was up 2.70%. 3 Cannabis ETFs (MSOS, CNBS, YOLO) remain well into oversold territory. Wind (FAN, -1.77%) and Digital Infrastructure (SRVR, -1.63%) were the worst performing segments. FAN also entered oversold territory, but is the top performing segment year-to-date, down 12.15%.

Commodities & Yields: Broad Commodities (DJP) finished the day up 21 bps as Energy (DBE) surged 3.51%. Natural Gas (UNG) increased 4.00% and WTI Crude Oil (USO) added 1.58%. The U.S. Dollar (UUP) was higher by 51 bps while U.S. Aggregate Bonds (AGG) and 20+ Year Treasury Bonds (TLT) fell 54 bps and 1.73%, respectively. After hitting the 3% level intraday, the U.S. 10-Year Treasury Yield finished at 2.99%.

5.2.2022

Major macroeconomic releases for the prior and upcoming weeks accompanied by historical macroeconomic data and chart books

• Durable Goods: New orders for manufactured durable goods rose $2.3 billion (+0.8%) in March while shipments increased $3.3 billion (+1.2%)
• Consumer Confidence: After rising in March, the Consumer Confidence Index declined slightly as consumers' appraisal of current business conditions were mixed
• New Home Sales: In March, new home sales fell another 8.6% as mortgage rates surged to the highest levels since February 2011 following a 25 basis point interest rate hike by the Federal Reserve in the month
• EIA Petroleum Status Report: For the week ended April 22, U.S. crude oil refinery inputs decreased 33K barrels per day to 15.7 million barrels , U.S. crude oil inventories rose while distillate and gasoline inventories decreased. The national average retail regular gasoline price rose to $4.107
• Jobless Claims: Initial jobless claims decreased 5K to 180K last week and the insured unemployment rate was unchanged at 1.0%
• GDP: According to the "advance" estimate released by the Bureau of Economic Analysis, Real Gross Domestic Product (GDP) decreased at an annual rate of 1.4% in the first quarter of 2022
• Personal Income and Consumer Spending: Personal income increased 0.5%, or $107.2 billion, in March while personal consumption expenditures (PCE) jumped 1.1%, or $185.0 billion
• Consumer Sentiment: The Index of Consumer Sentiment increased 9.8% to 65.2 in April as expectations improved