S&P estimates earnings of S&P 500 companies fell 3% in the third quarter from a year ago. That would be the first drop in corporate profits since the end of the recession, according to Fortune.
U.S.-based stock funds had their worst week since early September with ETFs accounting for most of the outflows. [ETF Outflows Speed Up on Market, Earnings Fears]
The top three unleveraged ETFs this week were volatility funds such as VelocityShares Long VIX Short Term (NYSEArca: VIIX), iPath S&P 500 VIX Short Term Futures (NYSEArca: VXX) and ProShares VIX Short Term Futures (NYSEArca: VIXY) with gains of more than 5%.
The bottom three unleveraged ETFs this week were First Trust Natural Gas (NYSEArca: FCG), First Trust Biotech (NYSEArca: FBT) and iPath Crude Oil (NYSEArca: OIL). They lost over 5%.
In next week’s economic data, look for reports on personal income and spending, home prices, consumer confidence, Chicago PMI, ISM manufacturing, construction spending and factory orders. The October nonfarm payrolls report crosses on Friday.