Stocks and exchange traded funds (ETFs) are on the hunt for direction this morning as the euro sank to a four-year low and the jobs report continued to disappoint traders who expected more.
After falling below 10,000 for the first time in in three months, the Dow Jones industrials and other major indexes are improving early Monday. With a remaining concern regarding last week’s jobs report, and no substantial domestic news due out early in the week, investors could turn their attention elsewhere: the euro and the Gulf of Mexico oil spill are two likely topics. However, with the Fed’s beige book (a regional assessment of the country’s economy) due Wednesday, and the weekly unemployment report due Thursday, investors won’t have to wait long for a further look into the state of the domestic economic recovery. [Euro ETFs: More Trouble Ahead?]
- SPDR Dow Jones Industrial Average (NYSEArca: DIA)
Commodities continued to struggle early Monday, as gold declined and oil losses extend to $71 a barrel fueled by the continuing debt crisis in Europe and the U.S. jobs report. Overall, the contract for July crude lost $3.10 to settle at $71.51, as oil traders often look to stock markets to gauge investor sentiment and most Asian and European indexes plummeted Monday. [The Long and Short of Oil ETFs.]
- United States Oil (NYSEArca: USO)
After the euro’s near 20% plunge against the dollar in April, reports show manufacturing in Germany improved for a second month with European goods now more competitive in the global market, soothing concerns that the economic recovery is faltering. Contributing to the rebound was news from Hungary that toned down comments made last week regarding a potential default, which sent the S&P to its lowest level in four months. [Hedge Euro Currency Risk With ETFs.]
- iShares MSCI Germany (NYSEArca: EWG)
Aaron Hurst contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.