U.S. equities struggled to find a definitive direction today as investors digested the latest earnings and economic reports. Boeing (BA) managed top analysts’ revenue expectations, while AT&T (T) missed the mark on revenues. AT&T’s results follow a recent trend seen this earnings season with companies beating profits not because revenues are up, but because costs have decreased. Tech-giant Apple’s (AAPL) highly anticipated earnings report was also released after the closing bell yesterday; the company announced an annualized $10.60 dividend and ended the day flat. In economic news, durable goods orders in March tumbled 5.7%, markings its steepest decline in seven months [see What Can You Buy With Apple's Cash?].
Following today’s disappointing earnings and durable goods reports, only two major U.S. equity indexes managed to close in positive territory. The Dow Jones Industrial Average ETF (DIA, A) ended 0.24% lower, as its underlying index slipped 43.16 points. The S&P 500 ETF (SPY, A) rose 0.06%, while the tech-heavy Nasdaq ETF (QQQ, B+) slid 0.04%, though its underlying index eked out a 0.01% gain.
In Europe, markets were higher on encouraging earnings reports which overshadowed a disappointing German business confidence report; the Stoxx Europe 600 rose 0.7%. Meanwhile, Asian markets were higher; Japan’s Nikkei Stock Average surged 2.3% on a declining yen, while China’s Shanghai Composite Index rebounded 1.6%.
Bond ETF Roundup
U.S. Treasury prices were slightly higher after the Treasury department sold $35 billion of 5-year notes at 0.71%. Yields on 10 and 5-year notes fell more than 1 basis point, while yields on 30-year bonds fell nearly 2 basis points [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures rose to settle above $90 a barrel after the U.S. Energy Information Administration reported a smaller-than expected rise in crude supplies of 900,000 barrels. Gasoline futures were also higher after the American Petroleum Institute reported that gasoline inventories declined 2.7 million barrels. Meanwhile, gold futures rose 1%.
ETF Chart Of The Day #1: (PPA)
The Aerospace & Defense ETF (PPA, A-) was one of the best performers today, gaining 1.24% during the session. After Boeing (BA) and General Dynamics Corp (GD) reported earnings that came in above expectations, this ETF gapped significantly higher at the open. PPA inched higher throughout the day, eventually settling at $22.94 a share [see Kitchen Sink ETFdb Portfolio].
ETF Chart Of The Day #1: (IBB)
The Nasdaq Biotechnology ETF (IBB, A-) was one of the worst performers today, shedding 2.92% during the session. After Amgen (AMGN) announced earnings beat expectations but sales fell short of estimates, this ETF gapped significantly lower at the open. IBB traded lower throughout the day, eventually settling at $169.67 a share [see Baby Boomers ETFdb Portfolio].
ETF Fun Fact Of The Day
The best-performing themed strategy over the trailing one-year period has been the King Dollar ETFdb Portfolio, which has gained 9.89%.
Disclosure: No positions at time of writing.