After yesterday’s Apple (AAPL) upset, investors sentiment picked up after a round of better-than-expected earnings report. Bullish momentum was back in full force, pushing major indexes to record breaking levels. Consumer products giant Procter & Gamble (PG) reported fiscal second quarter earnings that exceeded analysts’ estimates, while oilfield-services company Halliburton (HAL) reported a 26% fall in earnings, but beat projections. Online streaming and movie rental company Netflix (NFLX) continued its rally after the company posted stellar earnings yesterday. In economic news, sales of new homes in the U.S. fell more than expected in December [Be sure to check out the real estate news, trends, tips and tricks over at Dividend.com].
Global Market Overview: S&P 500 Tops 1500
Following a batch of better-than expected earnings, all three major U.S. equity indexes rallied into positive territory. The S&P 500 ETF (SPY, A) logged in a 0.56%, as its underlying index closed above the psychologically important 1,500 mark and clocked in its longest winning streak since 2004. Led by Procter & Gamble (PG), the Dow Jones Industrial Average ETF (DIA, B) rose 0.44%, while the tech-heavy Nasdaq ETF (QQQ, A-) gained 0.51%. In Europe, markets were mostly higher after a reading on the German business climate came in higher than expected and several euro zone banks indicated that they would repay a larger portion of ECB loans. Asian equities were also higher with Japan’s Nikkei Stock Average soaring 2.9% on a weaker yen.
Bond ETF Roundup
U.S. Treasury prices fell once again today after European banks announced a plan to start repaying a larger-than-expected portion of loans provided by the region’s central bank. Yields on 10 year notes rose 9 basis points, while 5-year notes’ and 30-year bonds’ yields jumped 8 basis points [see also Seven Simple & Cheap ETF Model Portfolios].
Commodity Roundup
U.S. energy futures fell flat today as investors digested the better-than-expected German business climate data. Bullish momentum pushed investors away from precious metals, as gold’s safe-haven appeal dimmed amidst riskier appetites. Wheat futures, however, soared on higher weekly U.S. export sales.
ETF Chart Of The Day #1: (OIH)
The Market Vectors Oil Services ETF (OIH, B+) was one of the best performers today, gaining 1.75% during the session. Following today’s somewhat surprising earnings report from Halliburton (HAL), this ETF gapped significantly higher at the open. OIH slid sideways for the day, eventually settling at $43.14 a share [see Energy Bull ETFdb Portfolio].
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ETF Chart Of The Day #2: (EWG)
The MSCI Germany Index Fund (EWG, A-) also posted a solid performance today, gaining 2.30% during the session. After a reading on the German business climate came in higher than expected, this ETF gapped significantly higher at the open. EWG slid sideways for the remainder of the day, eventually settling at its high of $25.80 a share [see Global Titans ETFdb Portfolio].
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ETF Fun Fact Of The Day
The best-performing regional strategy year-to-date has been the Euro Free Europe Portfolio, which has gained nearly 3.1%.
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