Financial-related exchange-traded funds were among the worst performers of a horrid week on Wall Street following more fears about the credit crisis, new writedowns and another CEO ouster.
chief Chuck Prince resigned over the weekend, but the news was overshadowed by the banking giant's forecast for writedowns of between $8 billion and $11 billion from the shrinking value of its subprime-related investments. Shares of Citigroup dropped 12.3% on the week.
said Friday that it expects to record a $1.1 billion writedown in debt obligations for October alone because of the recent subprime mortgages and credit mess. Wachovia tumbled 5.1% over the five sessions.
Several other lenders fell hard during the week.
ended down 7%, and
Ultra Financial ProShares
ETF tumbled 7.8% to $45.35. The
iShares Dow Jones U.S. Broker-Dealers
ETF was lower by 5.3% to $49.27. The
ETF fell 3.3% to $46.32.
Elsewhere, a 12.1% drop in shares of
during the week sank Internet and technology ETFs. Cisco said it had a fiscal first-quarter profit that topped estimates by a penny. However, the tech behemoth soured sentiment after saying it is feeling the effects of the credit crunch.
Several other tech leaders, who had enjoyed a run-up in recent months, stumbled during the week.
Research in Motion
lost 6.6% or more.
Ultra Technology ProShares
ETF plunged 16.4% to $80.14. The
Internet Architecture HOLDRs
shed 10.9% to $49.66. The
iShares S&P GSTI Networking
ETF lost 7% to $34.84. The
First Trust Dow Jones Internet Index
slid 6.5% to $25.59.
Bundled securities tracking the retail sector were also losers for the week, following disappointing same-store sales results on Thursday. Most notably affected were apparel retailers, as
all reported monthly losses and missed consensus targets.
SPDR S&P Retail
ETF ended down 5% to $34.69. The
PowerShares Dynamic Retail
ETF eased 4.9% to $16.05. The
fell 4.9% to $91.46.
On the other hand, Treasury-related ETFs were among few gainers as investors pulled out of equities money into bonds. On Friday, the 10-year note rose 16/32 in price, yielding 4.22%, compared to a yield of 4.30% a week ago.
SPDR Barclays Capital TIPS
ETF rose 1.4% to $50.88. The
iShares Lehman 10-20 Year Treasury Bond
ETF gained 0.6% to $103.56. The
SPDR Lehman Long Term Treasury
ETF added 0.3% to $52.64.