ETFs Mixed Ahead of 2Q Earnings Season

Stocks finished almost flat Wednesday ahead of the start of the second quarter earnings season with Dow component Alcoa (AA) set to kick things off after the market closed. Low expectations about the upcoming reports hit major indexes, which then got a late-session boost from bargain hunters. Investors failed to find encouragement in domestic economic prospects or global responses to the slowdown.

The Group of Eight summit in Italy became the Group of Seven, following Chinese President Hu Jintao's departure to address ethnic and religious unrest in the heavily Muslim western region of his country. The remaining global leaders continued to debates the proper approach to fixing the global economic slowdown.

The Dow Jones Industrial Average gained 15 points to 8178. The Nasdaq eked out a one-point gain to 1747 and the S&P 500 dropped a single point to 880. For a detailed rundown on Tuesday’s trading session see our market story.

Uncertainty was the only certainty Wednesday, as the iPath S&P 500 VIX Short-Term Futures Index fund, which profits off market volatility, rose 1.6%. Shares of the SPDR S&P Retail fund got a 2.2% boost in anticipation of earnings season, as online retailer Amazon.com (AMZN) received an upgrade to Positive from Susquehanna Investment Group.

The energy-heavy Market Vectors Russia fund (RSX) took a hit Wednesday, with shares declining 4.4%. The Market Vectors Gold Miners fund (GDX) also tumbled, losing 3.9% as the metal dropped $20 to close at $909 an ounce.

Data Point
Total assets in exchange traded funds increased $5.7 billion in June from a year ago, according to State Street Global Advisors (STT). The 1% increase from a year ago left $593 billion invested in 740 ETFs, run by 25 managers, the report said. The top three managers in the U.S. ETF marketplace remain Barclays Global Investors (BGI), State Street, and Vanguard, which control approximately 83.5% of the U.S.-listed ETF market.

Earnings and Conference Calls
3Com, Chevron, Franklin Covey, Helen of Troy, Shaw Group, Value Line

Economic Data
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

A look at how the industry's most popular ETFs did on Wednesday: