A slew of better-than-expected economic reports helped U.S. equities erase most of the previous session’s losses during today’s session. The S&P Case-Shiller 20-City home price index was reported to have risen 12.1% in April from a year earlier, topping analysts forecasts of an 11.1% increase. Durable goods orders also beat expectations, rising 3.6% in May from April versus the expected 3.2% uptick. In separate reports, new home sales rose 2.1% to a seasonally adjusted 476,000, while the Conference Board’s Consumer Confidence Index rose to 81.41 – the highest level in five years [see The Cheapest ETF for Every Investment Objective].
Following today’s upbeat economic reports, all three major U.S. equity indexes rallied to close in positive territory. The Dow Jones Industrial Average ETF (DIA, A-) gained 0.70% after its underlying index rallied nearly 150 points. The S&P 500 ETF (SPY, A) rose 0.96%, while the tech-heavy Nasdaq ETF (QQQ, B+) closed 0.63% higher.
In Europe, markets were broadly higher after a Bank of England official emphasized that central banks will not be raising interest rates any time soon; the Stoxx Europe 600 jumped 1.5%. Meanwhile, Japan’s Nikkei Stock Average fell 0.72%, while China’s Shanghai Composite managed to close down 0.2% after an earlier sell-off.
Bond ETF Roundup
U.S. Treasuries traded lower today following yesterday’s steep sell off and soft government auction of 2-year notes. Yields on 10-year notes rose 5.5 basis points to 2.531% after rising as high as 2.661%, while 30-year bonds and 2-year note yields rose 7 and 2 basis points, respectively [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures traded slightly higher today, settling just above $95 a barrel, ahead of weekly supply data. In other energy trading, natural gas and gasoline futures traded lower. Meanwhile, gold futures traded slightly lower on a stronger dollar.
ETF Chart Of The Day #1: (IYR)
The Dow Jones U.S. Real Estate Index Fund (IYR, A) was one of the best performers today, gaining 1.84% during the session. Following today’s better-than-expected Case-Shiller 20-City home price index report, this ETF jumped during the morning hours. IYR inched higher throughout the day, eventually settling at $65.19 a share [see Aggressive Portfolio].
ETF Chart Of The Day #2: (XHB)
The SPDR Homebuilders ETF (HAO, A-) also posted a strong performance today, gaining 1.44% during the session. Encouraging new home sales data allowed this ETF to gap significantly higher at the open. XHB slid sideways for the remainder of the day, eventually settling at $28.83 a share [see Kitchen Sink ETFdb Portfolio].
ETF Fun Fact Of The Day
The best-performing retirement strategy over the trailing 5-year period has been the Ready To Retire ETFdb Portfolio, which has gained 26.09%.
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Disclosure: No positions at time of writing.