ETFs Hit Sour Note Ahead of Holiday Weekend

Worse-than-expected job loss numbers ended a grim week ahead of the long Fourth of July weekend. Trading was extended until 4:15 p.m. on Thursday to clear up some technological glitches, but the four-session week ended roughly for stocks. The Labor Department reported that nonfarm payrolls shed 467,000 jobs in June, a much greater decline than the earlier estimate of 350,000. Crude oil dropped below $67 a barrel amid a wide selloff. The Dow Jones Industrial Average lost 218 to close at 8286. For a complete rundown on Thursday’s trading session see our market story.

Contrary, heavily leveraged short-term bets were the best move for traders during a disappointing week. The Direxion Daily Financial Bear 3X Shares fund (FAZ) rose 10.8%. Signs of an Asian recovery put the iShares MSCI Taiwan Index fund (EWT) among the best unleveraged, heavily traded ETFs, boosting shares 1.4% for the week.

The widespread dips in energy prices took the United States Natural Gas fund (UNG) down 9.4% for the week, and pushed back shares of the Oil Service HOLDRS Trust fund (OIH) by 8.0%. The broad selloff in stocks had the financial-services sector at its epicenter once again, knocking the SPDR KBW Regional Banking fund (KRE) 5.8% lower.

Launching Pad
ProShares Advisors launched a pair of leveraged exchange-traded funds Thursday. The ProShares Ultra Russell3000 (UWC) and ProShares UltraShort Russell3000 (TWQ) began trading on the New York Stock Exchange. They seek to replicate by 200% and -200%, respectively, the daily return of the Russell 3000 Index. The company said they are designed primarily for short-term trading strategies. The new funds charge 0.95% in annual expenses.

The Javelin Dow Jones Islamic Market International Index Fund (JVS) started trading Wednesday. It is advertised as the first ETF using an investing style tied to the tenets of Islam. Its portfolio now includes 23 companies representing 18 different currencies. The fund, which charges 0.6% a year, will not invest in companies involved in alcohol, gaming, weapons production, pork products and certain types of entertainment such as casinos, gambling and pornography.

The Securities and Exchange Commission approved the launch of the MacroShares Major Metro Up (UMM) and the MacroShares Major Metro Down (DMM) funds, which started trading Tuesday. The funds are designed to deliver 300% and -300% of the return of the S&P/Case-Shiller Home Price 10 Index, the leading benchmark of U.S. residential home prices.

Earnings and Conference Calls

Monday
Vimicro International

Tuesday
A. Schulman, Aeon, Greenbrier, International Speedway, Ruby Tuesday

Wednesday
Alcoa, Family Dollar, Nu Horizons Electronic, Pepsi Bottling Group, Rodman & Renshaw, WD-40

Thursday
3Com, Chevron, Franklin Covey, Helen of Troy, Shaw Group, Value Line

Friday
Infosys Technologies, PriceSmart, Progressive

Economic Data

Monday
10:00 a.m. June ISM Non-Manufacturing Index

Tuesday
7:45 a.m. ICSC Chain Store Sales Index for July 4
8:55 a.m. Redbook Retail Sales Index for July 4
5:00 p.m. ABC/Wash Post Consumer Conf for July 4

Wednesday
3:00 p.m. May Consumer Credit

Thursday
8:30 a.m. Initial Jobless Claims for July 4 Week
10:00 a.m. May Wholesale Trade
10:00 a.m. DJ-BTMU Business Barometer for June 26
June Chain-Store Sales

Friday
10:00 a.m. May Trade Balance
10:00 a.m. June Import Prices
10:00 a.m. Mid-July Reuters/U. Michigan Sentiment Index

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