Stock exchange traded funds fell Thursday with Cisco (NasdaqGS: CSCO) down nearly 5% as as oil, metals and other commodities continued to slide.
PowerShares QQQ (NasdaqGM: QQQ), an ETF comprised of top Nasdaq-listed stocks, was down following a disappointing outlook from bellwether Cisco. The company after Wednesday’s closing bell reported quarterly results and said it expects its current quarter will continue to show weakness. The stock is down over 5% in early trading. [Nasdaq ETF Set for Lower Open After Weak Cisco Outlook]
Weakness in Citigroup (NYSE: C) and bank ETFs isn’t a good sign for a market that could be faltering. [Bank ETFs Fall]
Traders are keeping a close eye on the bounce in the dollar since many assets including commodities and stocks have shown an inverse correlation with the greenback in recent years When the dollar weakens, it’s usually a good sign for equities and commodities such as oil and precious metals. The question is whether this week’s dollar rally is the start of a trend change or simply a brief respite from the move lower. PowerShares DB US Dollar Index Bullish (NYSEArca: UUP) has risen about 3% over the past week and was up fractionally in Thursday’s premarket. The ETF follows the movement of the dollar against a basket of currencies. [Dollar, Euro at ETFs at Critical Juncture]