US markets trade lower on dismal first quarter earning releases
US markets were trading on a lower note on April 29 due to lower earning releases from technology and healthcare stocks. Weak earnings in the first quarter from drug and health insurance companies weighed on the sentiment. Electronic makers and storage device companies delivered a weak start.
Towards the end of April 29, the S&P 500 VIX Index rose 3.2%. The S&P 500 Futures Index and the Dow Jones Industrial Average fell 0.51% and 0.32%, respectively. NASDAQ futures were also trading weak. They fell 0.62%.
Chicago PMI fell to 50.4
The Chicago PMI (purchasing managers’ index) fell in April to 50.4—compared to 53.6 in March and estimated forecasts of 53. A drop in the order backlog combined with a fall in new orders contributed to the fall in the PMI report. The University of Michigan’s consumer sentiment for the US came in at 89 points in April—compared to 91 in the previous month and expectations of 90 points. On a monthly basis, personal spending rose by a slower rate of 0.1% in March—compared to 0.2% in the previous month. Personal income in March rose by 0.4%—compared to 0.1% growth in February.
Impact on ETFs across sector SPDR indexes
The gold and metals and mining sectors traded positively on April 29. The SPDR Gold Shares ETF (GLD) was the outperformer for the day. It rose 2.0% on April 29. The SPDR S&P Metals & Mining ETF (XME) rose 1.6%. The Utilities Select Sector SPDR ETF (XLU) rose 0.6% on the day.
Among the major sector-specific SPDRs trading negatively, the SPDR S&P Biotech ETF (XBI) fell 2.2%. The Technology Select Sector SPDR ETF (XLK) and the Health Care Select Sector SPDR ETF (XLV) fell 0.87% and 1.6%, respectively, on April 29.