How ETFs are Reacting to the Negative Q4 GDP Print
January 30th, 2013 at 9:01am by John Spence
Gold exchange traded funds rose in Wednesday’s premarket trading as investors were surprised by a government report showing the U.S. economy shrank in the first quarter partly on lower government spending.
SPDR Gold Shares (NYSEArca: GLD) was up nearly 1% before the opening bell.
U.S. gross domestic product fell at a 0.1% annual rate in the fourth quarter, the Commerce Department said Wednesday morning.
U.S. stock futures fell immediately after the report but recouped their losses. SPDR S&P 500 (NYSEArca: SPY) was set for a flat open based on premarket dealings.
Similarly, yields on the 10-year Treasury note initially plunged before bouncing. The iShares Barclays 20+ Year Treasury Bond (NYSEArca: TLT) was off 0.1% before the bell.
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own SPY, TLT and GLD.
The opinions and forecasts expressed herein are solely those of John Spence, 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.