The bulls finally returned to Wall Street on Monday morning following a sour trading trading week dominated by mixed economic and earnings reports. Better-than-expected data at home welcomed buyers right from the opening bell; U.S. retail sales topped expectations while bank bellwether Citigroup managed to beat analyst estimates and rally upwards of 4% on the day [see Free Report: How To Pick The Right ETF Every Time].
Solid retail sales data was enough to spark a rally for all major equity benchmarks; the S&P 500 took the lead while the Nasdaq lagged behind, with SPY and QQQ clinching gains of 0.83% and 0.73% respectively. Overseas, European markets kicked off the week with a win as optimism in anticipation of this week’s Euro zone summit encouraged buying. In Asia, markets broadly settled higher after Chinese CPI data eased inflationary concerns.
Bond ETF Roundup
U.S. Treasuries sank lower after “risk on” sentiment in the equity market discouraged inflows for this safe haven asset class. Investment-grade and “junk” corporate bonds crept higher on the day alongside major equity benchmarks.
Commodity ETF Roundup
Natural gas stole the headlines today after the European Union announced it was banning the import of this fuel from Iran, adding to the list of sanctions now pressuring the Middle Eastern nation to cooperate. Agricultural commodities continued their drop as profit taking pressures from last week persisted.
ETF Chart Of The Day #1: XLV
The State Street Health Care Select Sector SPDR (XLV) was one of the best performers, gaining 1.44% on the day. Bullish euphoria in the healthcare sector emerged after Eli Lilly & Co. reported positive results for a late-stage gastric cancer drug in development; XLV closed pennies away from its high of $40.92 a share on the day. Following today’s run higher, this ETF is sitting on gains of nearly 18% from a year-to-date performance perspective [see our Baby Boomers ETFdb Portfolio].
ETF Chart Of The Day #2: GLD
The State Street SPDR Gold Trust (GLD) was one of the worst performers, shedding 1.01% on the day. Gold futures plunged lower after the mining strike crisis in South Africa intensified; talks between lawmakers and trade unions fell through on Monday, inviting profit taking pressures in the gold market. GLD also got a whiff of major technical resistance as the security failed to summit the $175 level over the past few weeks [see also How To Play $10,000 Gold].
ETF Fun Fact Of The Day
The best performing regional portfolio is our Ex-Europe ETFdb Model Portfolio in the trailing period 1-year period; this strategy is up 12.85%.
Disclosure: No positions at time of writing.