Wall Street started off the month of June with a bang, with all three major indexes rallying in the final minutes of trading after a somewhat choppy session. In economic news, the Institute for Supply Managements index of manufacturing activity unexpectedly contracted in May, marking its first decline in six months. In a separate report, the Commerce Department reported construction spending for April rising less than expected. Investors weighed these underwhelming U.S. economic reports against potential monetary policy changes by the Fed. As such, many will be keeping a close eye on the monthly government employment report at the end of the week [see The Cheapest ETF for Every Investment Objective].
Despite today’s downbeat economic reports, all three major U.S. equity indexes managed to close in positive territory. The Dow Jones Industrial Average ETF (DIA, A) rose 0.80% higher after its underlying index rallied more than 100 points. The S&P 500 ETF (SPY, A) gained 0.55%, while the tech-heavy Nasdaq ETF (QQQ, A-) rose 0.22%.
In Europe, markets repaired earlier losses after eurozone manufacturing data came in better-than-expected. The Stoxx Europe 600 slipped 0.8%. Meanwhile, Asian equities were broadly lower after China’s HSBC’s PMI for the month of May fell below the 50-mark; Japan’s Nikkei Stock Average tumbled 3.72%, while China’s Shanghai Composite Index fell 0.06%.
Bond ETF Roundup
U.S. Treasuries traded higher following a worse-than-expected ISM report. Yields on 10-year notes fell slightly to 2.130%, while 30-year bond yields fell 2.5 basis points and 5-year note yields were up slightly at 1.029% [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures ended higher today, settling above $93 a barrel, as investors weighed today’s manufacturing data from the U.S. and China. In other energy trading, gasoline and natural gas futures were also slightly higher. Meanwhile, gold rose 1% after hitting its highest in more than two weeks on a weaker dollar and weaker-than-expected U.S. manufacturing data.
ETF Chart Of The Day #1: (GDXJ)
The Market Vectors Junior Gold Miners ETF (GDXJ, B+) was one of the best performers today, gaining a whopping 4.49% during the session. As gold prices edged higher, gold mining equities rallied, allowing this ETF to gap higher at the open. GDXJ inched higher throughout the morning, eventually settling at $12.56 a share [see GLD-Free Gold Bug ETFdb Portfolio].
ETF Chart Of The Day #2: (XLE)
The Energy Select Sector SPDR ETF (XLE, A) also posted a strong performance today, gaining 0.97% during the session. Energy shares were among today’s top performers, allowing this ETF to recover losses from the morning hours. XLE rallied throughout the afternoon hours, eventually settling at $81.28 a share [see Energy Bull ETFdb Portfolio].
ETF Fun Fact Of The Day
The best-performing themed strategy over the trailing 4-week period has been the High Tech ETFdb Portfolio, which has gained 1.96%.
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Disclosure: No positions at time of writing.