Econ Report Card: ETFs Mixed With Mixed Reports (SPY, DIA, QQQ, IWM)

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Major Index ETFs shrug decreased productivity, fewer jobless claims reports

Major index ETFs including the SPDR S&P 500 ETF (NYSEARCA:SPY), the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA), the PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ), and the iShares Russell 2000 Index ETF (NYSEARCA:IWM), had mixed reactions today towards the negative productivity report and positive jobless claims reports released earlier this morning.

Jobless claims for the week of January 28th decreased from 379,000 to 367,000 claims, while fourth quarter productivity growth rose only .7% compared to a near 2% rise for third quarter of last year.  Although a decreased number of initial jobless claims is good news, both reports are nothing to write home about our fragile economic recovery.

The SPDR S&P 500 ETF (NYSEARCA:SPY) and the iShares Russell 2000 Index ETF (NYSEARCA:IWM) have risen slightly today in reaction to the mixed economic reports, while the Dow Jones Industrial Average has fallen slightly likely due to the negative fourth quarter productivity report.  The PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ) has likely risen based more on Facebook’s IPO filing rather than on economic report indicators.  Unit Labor Costs were also reported to have risen 1.2% for fourth quarter 2011, which also likely did not help today’s lackluster index ETF performance.

Bottom Line:  Economic reports were mixed today as initial jobless claims decreased, fourth quarter productivity slowed, and labor became more expensive.  Major index ETFs including NYSEARCA:SPY, NASDAQ:QQQ, NYSEARCA:DIA, and NYSEARCA:IWM have had mixed, if lackluster reactions in either direction today’s economic indicators.  All in all, our economic condition is still extremely fragile.

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Disclaimer: Wall Street Sector Selector trades a wide variety of ETFs and positions can change at any time.