Exchange traded funds tracking major stock indexes were lower Thursday as investors parsed through remarks from Donald Trump in his first news conference since being elected president.
SPDR S&P 500 (SPY) jabbed 0.7% lower on the stock market today in early trading. This ETF, a proxy for the broad U.S. market, has rallied 7% since Nov. 8 through Wednesday.
However, its losses in early Thursday trading came after the president-elect offered few clues about his plans for corporate tax reform, fiscal stimulus and deregulation at his keenly awaited media event.
Technology and financials led declining S&P 500 sectors in morning trade.
Consumer staples and utilities ETFs held up better in early Thursday action, as investors tilted toward defensively oriented sectors.
Beyond equities, safe-haven assets were in demand.
SPDR Gold Shares (GLD) punched up as much as 1.2% to 114.75 — its highest level in seven weeks — as spot gold surged above $1,200 an ounce after the Trump briefing.
IShares 20+ Year Treasury Bond (TLT) popped 0.7% to 122.95.
The yield on the benchmark 10-year Treasury fell to 2.321%, its lowest since November, according to news reports. Bond yields move inverse to their price.
Several Fed officials are scheduled to make speeches on Thursday. St. Louis Federal Reserve President James Bullard told CNBC that the market is looking to Trump and Congress to deliver on growth promises.
Meanwhile, iShares Nasdaq Biotechnology (IBB) extended losses from Wednesday's session, which came amid Trump's sharp criticism of the drug industry.
"We have to get our drug industry coming back," Trump said at Wednesday's media event. "Our drug industry has gotten disastrous. They're leaving left and right. They supply our drugs, but they don't make them here, to a large extent."
Trump added: "And the other thing we have to do is create new bidding procedures for the drug industry, because they're getting away with murder."
The iShares biotech ETF dived 3% in massive volume following those remarks and closed in the red for the first time in 2017. It slid another 1% on Thursday.
The ETF sits 8% below its September high of 301.80.
Biotechs had spiked postelection on hopes that Trump would be more friendly toward the industry than his presidential rival, Hillary Clinton.
IBD'S TAKE: As the Trump agenda emerges, read IBD Leaderboard and The Big Picture every day to see how market leaders are performing and to assess whether the stock market has more room to run.
12 Bellwether ETFs
Here's a look at the performance of major exchange traded funds across key asset classes on the stock market today.
The Relative Price Strength (RS) Rating measures a stock's price performance over the last 12 months vs. all stocks and ETFs, on a scale of 1 to a best-possible 99.
SPDR S&P 500 (SPY), -0.7%, RS 56
PowerShares QQQ (QQQ), -0.8%, RS 56
SPDR Dow Jones Industrial Average (DIA), -0.8%, RS 62
IShares Core S&P Mid-Cap (IJH), -1.4%, RS 67
IShares Russell 2000 (IWM), -1.7%, RS 72
IShares MSCI EAFE (EFA), +0.2%, RS 41
Vanguard FTSE Emerging Markets (VWO), 0%, RS 46
SPDR Gold Shares (GLD), +0.9%, RS 21
United States Oil (USO), +1.8%, RS 51
IShares Core U.S. Aggregate Bond (AGG), +0.3%, RS 25
PowerShares DB U.S.$ Bullish (UUP), -0.7%, RS 44
IPath S&P 500 VIX Short-Term Futures (VXX), +2.7%, RS 1
