Bundled securities following U.S. Treasuries were among the only winners of a down day for the major averages Thursday as traders pulled money from the equity market and dumped it into bonds.
The 10-year Treasury note rose 3 1/32 in price, yielding 4.60%, and the 30-year bond was tumbling 1 16/32, yielding 4.93%
The iShares Lehman 20+ Year Treasury Bond (TLT) was up $1.25, or 1.5%, to $87.50. The SPDR Lehman Long Term Treasury (TLO) was higher by 58 cents, or 1.2%, to $50.96. The iShares Lehman 3-7 Year Treasury Bond (IEI) climbed 73 cents, or 0.7%, to $101.87.
Nearly every other exchange-traded fund was sliding Thursday. Overseas-related bundled securities were among the worst decliners after indices dropped overnight. Tokyo's Nikkei 225 fell 2%, and Hong Kong's Hang Seng plummeted 3.3%. London's FTSE was worse by 3.1%, and Frankfurt's DAX dropped 1.7%.The iShares MSCI Brazil Index (EWZ) was falling $4.29, or 8.1%, to $48.67. The iShares S&P Latin America 40 Index (ILF) dropped $12.14, or 6.5%, to $173.85. The iShares FTSE/Xinhau China 25 Index (FXI) slumped $7.56, or 6.1%, to $115.01. The SPDR S&P China (GXC) was lower by $4.46, or 7%, at $59.59. Gold- and silver-related ETFs were also crumbling, as the dollar declined against the world's major currencies. Gold futures dove $21.70 to $658 an ounce, and silver was down 99 cents to $11.57 an ounce. The PowerShares DB Silver (DBS) was shedding $2.33, or 9.4%, to $22.34. The Market Vectors Gold Miners (GDX) ETF was losing $2.90, or 8%, to $33.55. The iShares Silver Trust (SLV) was down $8.07, or 6.5%, to $115.78. Basic-materials-related bundled securities were among the biggest losers. Among individual stocks, Alcoa (AA), Nucor (NUE) and Freeport-McMoRan (FCX) slumped 6.5% or more. The First Trust Materials AlphaDEX (FXZ) ETF slid $2.32, or 11.8%, to $17.39. The Ultra Basic Materials ProShares (UYM) was dropping $5.39, or 7.6%, to $65.99. The iShares Dow Jones U.S. Basic Materials (IYM) was down $2.64, or 4.2%, to $60.86. Homebuilders were also suffering. Among individual names, Ryland (RYL), Centex (CTX), Toll Brothers (TOL) and Hovnanian (HOV) were all lower. The iShares Dow Jones U.S. Home Construction (ITB) was tumbling 21 cents, or 0.9%, to $23.47. The SPDR S&P Homebuilders (XHB) lost 8 cents, or 0.3%, to $23.81.