ETFs Dip on Poor Auto Sales, Middle East

The first full trading week of 2009 got underway on Monday. However, the same bad news that plagued the last 12 months didn't go away simply because of a turn of the calendar page. Indeed, those headlines were once again hampering stock returns, helping to erase some of the gains posted over the Christmas break. The Dow Jones Industrial Average dropped 81 points to 8,952.

The nation's auto makers revealed their sales figures for December. The results were ugly. General Motors (GM) saw a 31% plunge; Chrysler's sales were more than cut in half. Those numbers back up what the carmakers have been saying the last few weeks: Consumers won't buy cars from companies that are on shaky footing. The dismal sales environment was also felt by Toyota (TM) and Ford (F).

Oil gained over $2 a barrel due to increased concerns about the conflict unraveling in the Middle East. A barrel of crude closed near the $48.50 mark.

Wire services reported that telecom companies like AT&T (T) and Verizon (VZ) were downgraded Monday over future earnings concerns.

The Commerce Department said construction spending continues to dip, a data point that shows the housing industry isn't back on its feet quite yet.

There were a few bright spots. It appears President-elect Barack Obama will include over $300 billion in tax cuts in any stimulus plan he proposes once he is in office later this month. The tech sector got a bounce when Apple (AAPL) chief Steve Jobs announced his health problems -- what he called a hormone imbalance -- wouldn't cause him to relinquish his post. Apple shares rose 4.5% on the news.

The downturn in auto sales spread across the globe. Investors bailed out of Japan, home to Toyota. The Powershares FTSE RAFI Japan ETF (PJO) lost 8.1%.

The conflict developing in the Middle East -- and its potential impact on oil supplies -- played a key role in pushing the prices of natural resources ETFs higher during Monday's session. The United States Gasoline fund (UGA) gained 6.3%.

Changing Jobs
Paul Mazzilli, one of the best-known ETF analysts around, is leaving Morgan Stanley to join IndexIQ, a provider of index-based alternative investment solutions. He’ll be developing ETF portfolio products for IndexIQ that are geared towards high net worth and institutional investors.

Earnings & Conference Calls
Piedmont Natural Gas, Mosaic Company

Economic Data
7:45 a.m. ICSC Chain Store Sales
8:55 a.m. Redbook Retail Sales
10:00 a.m. Dec. Non-Manufacturing
10:00 a.m. Nov. Pending Home Sales
10:00 a.m. Nov. Factory Orders
2:00 p.m. Dec. FOMC Minutes

A look at how the industry's most popular ETFs did on Monday.