Exchange-traded funds tracking homebuilders and REITs were falling hard Tuesday, as traders continued to fret about the health of credit markets.
Among REIT-related ETFs, the
iShares FTSE NAREIT Mortgage REITs
(REM) was dropping $2.13, or 7.1%, to $27.73. The
Ultra Real Estate ProShares
(URE) gave back $2.38, or 5.6%, to $39.97. The
iShares FTSE NAREIT Residential
(REZ) was tumbling $1.31, or 2.9%, to $44.24.
Homebuilders were feeling the crunch as well.
(BZH) gave back 9% after Fitch Ratings downgraded its debt again. Meanwhile,
(MTH) were losing 3% or more.
iShares Dow Jones U.S. Home Construction
(ITB) was shedding 76 cents, or 3%, to $25.01. The
SPDR S&P Homebuilders
(XHB) was lower by 63 cents, or 2.4%, to $25.27.
Retail-related ETFs were also suffering following disappointing news out of the world's largest retailer,
Excluding items, Wal-Mart said it had earnings of 76 cents a share, matching the Thomson Financial estimate, but the company guided lower for the third quarter and full year. Meanwhile, Home Depot beat estimates by a nickel, but the home improvement retailer said that housing markets should remain soft into 2008.
was shedding $2.60, or 2.6%, to $97.15. The
SPDR S&P Retail
was down 94 cents, or 2.4%, to $38.10. The
PowerShares FTSE RAFI Consumer Services
was losing $1.15, or 2.2%, to $51.90.
There were few winners during Tuesday's session outside of the biotechnology arena. Earlier,
said it had positive phase II clinical trial data for its congestive heart failure treatment drug, Adentri.
First Trust Amex Biotechnology Index
ETF was adding 24 cents, or 1%, to $23.95. The
was higher by $1.55, or 1%, to $163.75.