Notable ETF Movers of the Day 12/27: (VXX) Higher; (XOP) (XLF) Lower

December 27, 2012 1:23 PM EST

iPath S&P 500 VIX ST Futures ETN (NYSE: VXX) gained 5.8 percent to 35.7. The move in VXX came as implied volatility on the S&P 500 climbed, with VIX retaking 20 for the first time since July. While equity volume has been light, investors were not shy about using volatility to hedging positions heading into what may be a dramatic conclusion to fiscal cliff talks.


SPDR S&P Oil & Gas Exploration & Prod (NYSE: XOP) declined 1.65 percent to 53.1. Horizontal drilling specialist, PDC Energy, Inc. (Nasdaq: PDCE), declined 3.3 percent. PDC has a 1.8 percent weighting in XOP. CVR Energy (NYSE: CVI) is the top holding in the oil and gas ETF. Its shares declined 1.8 percent.

Financial Select Sector SPDR (NYSE: XLF) declined 1.4 percent, with pressure weighing on shares of Bank of America (NYSE: BAC) and Citigroup (NYSE: C). Shares of American Express (NYSE: AXP) were also caught in the downdraft, and the stock fell 1.9 percent. Year-to-date, XLF is higher by 23 percent. Traders hope a resolution to cliff talks will ultimately lead to a 2013 rally in financials. However, with talks stalled and a clear path to resolution unsure, investors had little love for financials on Thursday.

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