Market Slide Flattens ETFs as Rally Pauses

Tepid trading and mixed data ended a three-day rally and left most ETFs flat to slightly down, as traders paused following weak earnings from an economic bellwether and middling housing data.

The Dow Jones Industrial Average closed down 8 points at 9784. The Nasdaq ebbed 6 to 2126, and the S&P 500 shed 3 to 1065.

Traders balked on weakness at FedEx (FDX). The package-delivery firm posted a 20% first-quarter sales decline, unnerving some traders. FedEx's results are often used as a blunt indicator of broader economic conditions. Weaker sales mean fewer packages -- a sign that business spending and retail could still be slumping.

The tech sector offered little solace. Oracle (ORCL) reported a drop in sales as well, casting more doubt over the idea that companies are ready to boost their outlays.

In economic news, the housing sector's recovery is starting to sputter. New data suggest housing starts were flat in August and building permits -- a leading indicator for the market -- declined a bit. The $8,000 federal tax credit for first-time home buyers is scheduled to expire in November, coloring the medium-term real estate outlook.

For a detailed rundown on Thursday's trading session, see our market story. 

Investors headed to safe havens as stocks slumped, pushing up shares of the iShares Barclays 20+ Year Treasury Bond fund (TLT) by 1.4%. The iShares Barclays 7-10 Year Treasury Bond fund (IEF) rose 0.5%.

The United States Natural Gas fund (UNG) took a mild dip, with shares declining 3.8% as natural gas prices receded. Profit taking in the financial-services sector hit the SPDR KBW Regional Banking fund (KRE), which declined 2.7%.

Launching Pad
State Street Corporation (STT) Global Advisors unit announced the Thursday launch of the SPDR Wells Fargo Preferred Stock fund (PSK), which began trading on the New York Stock Exchange. The fund seeks to replicate the Wells Fargo Hybrid and Preferred Securities Aggregate Index, which is comprised of nonconvertible preferred securities. Its annual expense ratio is 0.45%.

The Dow Jones Emerging Markets Financial Titans Index fund (EFN) began trading Wednesday on the New York Stock Exchange. The fund replicates the performance of the Dow Jones Emerging Markets Financial Titans 30 Index, which includes 30 of the largest emerging markets financial companies in banking, life insurance and non-life insurance, real estate investment and services, and financial services. The top five markets last week, with their respective weightings, are currently China (39.71%), Brazil (22.88%), India (13.21%), South Africa (9.25%), and Malaysia (3.96%).

Earnings and Conference Calls
Point.360

Economic Data
No major economic indicators.