Concern about the crisis in Greece, potential downgrades in Portugal and the fate of Goldman Sachs (NYSE: GS) is sending the markets and exchange traded funds (ETFs) haywire this morning.

As concern for the Greek bailout wiped out 2010 gains on the MSCI World Index, the Chicago Board Options Exchange Volatility Index surged, gaining 13% in New York. VIX measures the cost of using options as insurance against declines in the Standard  & Poor’s 500 Index, which lost 1.1% with concern that Europe’s debt crisis will spread beyond Greece. [How the VIX ETNs Work.]

  • iPath S&P 500 VIX Short-Term Futures ETN (NYSEArca: VXX)

The euro continues to take its lumps this morning. The currency continued to decline against the dollar, hitting a 14-month low at $1.2803, as news that Moody’s Investor Service (NYSE: MCO) placed Portugal under review for a downgrade. [Buy Euro ETFs Now?]

  • CurrencyShares Euro Trust (NYSEArca: FXE)

In a reversal of expectations, job growth for March was revised to show a gain of 19,000 jobs, the first increase since January 2008. U. S. private employers also added 23,000 jobs in April, right in line with expectations. As hopes of the recovery of the U. S. economy continued to grow, as job growth is considered the key to sustaining such a recovery. [5 Ways to Play a Recovery.]

Blaming an early Easter and cooler weather, U. S. retailers are expected to announce a slower growth in sales from the previous month. After an 8.7% increase in sales in March, only a 2% increase is expected, which would mark the smallest gain in retailers’ monthly profits since November.

  • SPDR S&P Retail (NYSEArca: XRT)

Strong rebounds in advertising spending continues to push profits for media companies, as Time Warner, Inc. (NYSE: TWX) posted first quarter earnings of 9.8%, and said that it expected growth “at least” in the mid-teens, up from previous forecasts. [What’s Behind the Media ETF’s Comeback?]

  • PowerShares Dynamic Media (NYSEArca: PBS): Time Warner is 4.9%

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.