According to the ETF Dashboard, Treasury bond ETFs are gaining this morning on yet more discouraging news from the struggling real estate sector.
The top-moving fund early this morning is the PIMCO 25+ Year Zero Coupon U.S. Treasury Bond (ZROZ), which at one point was up more than 3.5%:
Homebuilder confidence fell for the third consecutive month last month, thanks to a glut of cheap foreclosure properties. It was the index’s lowest reading since March 2009. iShares Dow Jones U.S. Home Construction (ITB) may have already priced in the negative sentiment – it’s down 0.5% so far today. Top component Lowe’s (LOW) gave earnings this morning, saying it expected sales to rise 4% this year. Analysts are more bullish, predicting a 5% gain.
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Japan’s economy showed more signs of slowing growth. The country’s GDP rose 0.4%, missing expectations. The slower growth can be blamed on low consumption, slower exports and a soaring yen, which is making Japanese goods less appealing overseas. In the last three months, iShares MSCI Japan (EWJ) is down nearly 5%. Today, it’s down 0.2%.