The major stock exchange traded funds (ETFs) fell Wednesday after the nation’s trade deficit widened while silver prices tumbled again.
ETFs tracking silver dropped more than 4% Wednesday morning as the dollar continued to plow higher. The iShares Silver Trust (NYSEArca: SLV) was down 3.5% in early trade. The iShares fund and other silver ETFs such as ETFS Physical Silver (NYSEArca: SIVR) have seen volume spike the past two weeks on higher margins requirements in futures and heart-stopping swings in the metal’s price. [Silver ETFs Fall 3%]
Retail ETFs got a boost Wednesday from bullish earnings from Macy’s (NYSE: M) and a higher outlook from the company. Macy’s shares jumped 8% in premarket action. The retail giant also doubled its quarterly dividend to a dime a share. [Macy Earnings Ring Up Retail ETFs]
Underperforming financial ETFs were set for a flat open Wednesday as investors eyed an offering of American International Group (NYSE: AIG) shares and a key technical level. AIG and the Treasury Department said they plan to offer 300 million AIG shares for a total of nearly $9 billion. The announcement came after a meeting Tuesday during which AIG’s board debated whether to push back the offering due to weakness in the stock, The Wall Street Journal reported. The offering is near the low end of the range earlier envisioned, according to the report. [Financial ETFs Watch AIG Offering, 50-Day Average]
Inflation continues to surge in China as a report showed consumer prices jumped 5.3% in April, putting ETFs that track its currency, the yuan, in focus Wednesday. U.S. officials will put pressure on China to let the yuan rise more quickly as Beijing may take additional steps to fight inflation, The Wall Street Journal reported earlier this week. In nominal terms, the yuan has risen about 5% against the dollar since June, according to the report. [China Inflation and Currency ETFs]