Consumer Discretionary ETFs Surge on Confidence News

by on May 26, 2009 | ETFs Mentioned:

Consumer discretionary ETFs surged Tuesday morning on news that consumer confidence increased again in May to its highest level since September 2008. The Conference Board announced that its index of consumer confidence for May increased to 54.9 from 40.8 in April (originally reported at 39.2). Expectations for economic activity over the next six months jumped to 72.3 from 51.0 in the prior month.

Following the report, ETFs focused on consumer discretionary indices surged, with State Street’s XLY, iShares’ RXI, and PowerShares’ PEZ all up more than 2%. The report largely offset disappointing results on home prices released earlier Tuesday morning, indicating that home prices continued to fall in 15 of the top 20 major metropolitan areas.