Both the S&P 500 and Dow Jones Industrial Average posted record high closes today, as investors digested the latest reports from the U.S. and Europe. Bolstering equities, health care stocks led today’s rally after the Centers for Medicare and Medicaid Services released a higher-than-expected final estimated payment growth rate for insurers, meaning that companies running Medicare Advantage plans will get significantly more money than expected. Meanwhile, investors cheered after Cyprus’ government received an additional year to meet its budget targets [see Free Member Report: How To Pick The Right ETF Every Time].
Following today’s Centers for Medicare and Medicaid Services report, all three major U.S. equity index rallied to close in positive territory. The Dow Jones Industrial Average ETF (DIA, A) gained 0.63%, as its underlying index hit a fresh intraday high of 14,684.49. The S&P 500 ETF (SPY, A) rose 0.49%, while the tech-heavy Nasdaq ETF (QQQ, A-) jumped 0.79%.
In Europe, markets were broadly higher after news of Cyprus hit the streets; the Stoxx Europe 600 rallied 1.3%. Meanwhile, Asian markets were once again lower; China’s Shanghai Composite Index slipped 0.30%, while Japan’s Nikkei Stock Average fell 1.1%.
Bond ETF Roundup
Treasury prices edged lower today as European and U.S. stock markets rallied. Yields on 10-year notes hovered around 1.85%, while yields on 5-year notes and 30-year bonds fell 2 and 3 basis points, respectively [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures traded lower today despite a report showing a rise in U.S. factory orders; traders remain concerned over weak manufacturing data in the U.S. and Europe as well as petroleum supply and nonfarm payrolls data slated to come out later this week. Meanwhile, gold futures fell 1.5%, its biggest one-day drop in over a month.
ETF Chart Of The Day #1: (IHF)
The Dow Jones U.S. Health Care Providers Index Fund (IHF, B+) was one of the best performers today, gaining 1.95% during the session. Health care shares were among today’s top performers following the Centers for Medicare and Medicaid Services report, forcing this ETF to gap significantly higher at the open. IHF slid sideways for the remainder of the day, settling at $79.14 a share [see Baby Boomers ETFdb Portfolio].
ETF Chart Of The Day #2: (IYM)
The Dow Jones U.S. Basic Materials Index Fund (IYM, A) was one of the worst performers today, shedding 1.14% during the session. Despite today’s positive U.S. factory orders report, this ETF took a steep tumble during the afternoon hours. IYM eventually settled at $68.46 a share [see 2013 ETFdb Portfolio].
ETF Fun Fact Of The Day
The best-performing regional strategy over the trailing 1-year period has been the Global Titans ETFdb Portfolio, which has gained 10.26%.
Disclosure: No positions at time of writing.