Equity markets bounced back today, after yesterday’s sharp pull back had stocks posting their worst one-day performance of the year. Following relatively good earnings and economic reports, bullish momentum came back to the forefront, as has been the trend thus far in 2013. In corporate news, Computer Sciences (CSC) jumped after the company reported better-than-expected fourth quarter earnings. On the economic front, the Institute for Supply Management reported that the U.S. non-manufacturing sector expanded at a slower rate last month, though the reading was still better than economists’ expectations [Be sure to check out the real estate news, trends, tips and tricks over at Dividend.com].
Wiping out most of the previous session’s losses, all three major U.S. equity indexes closed in positive territory. The Dow Jones Industrial Average ETF (DIA, A) logged in a 0.59% gain, with its underlying index closing shy of the 14000 level. The S&P 500 ETF (SPY, A) rose 1.01%, while the tech-heavy Nasdaq ETF (QQQ, B+) jumped 1.47%. In Europe, markets were mostly higher even after a report showed private-sector activity in the euro zone contracted at its slowest pace in 10 months and December retail sales in the region declined 0.8%. Asian equities, however, were mostly lower with Japan’s Nikkei Stock Average slumping 1.9%. China’s Shanghai Composite inched 0.2% higher after the country’s central bank made its largest daily liquidity injection.
Bond ETF Roundup
U.S. Treasury prices were mostly lower today as stocks recovered from yesterday’s steep sell-off and euro zone fears eased. As investors shifted away from the safe haven, yields on 10-year notes and 30-year bonds rose nearly 6 basis points [see also Seven Simple & Cheap ETF Model Portfolios].
U.S. crude futures were in for a choppy day of trading, eventually settling higher following positive economic data from Europe and the US. Gold futures, however, retreated from an initial rally as investors shifted assets away from the safe-haven metal.
ETF Chart Of The Day #1: (XOP)
The SPDR S&P Oil & Gas Exploration & Production ETF (XOP, A) was one of the best performers today, gaining 1.93% during the session. Alongside an uptick in crude oil futures, this ETF gapped significantly higher at the open. XOP climbed higher throughout the day, eventually settling at $59.11 a share [see Energy Bull ETFdb Portfolio].
ETF Chart Of The Day #2: (IAI)
The Dow Jones U.S. Broker-Dealers Index Fund (IAI, B+) also posted a strong performance today, gaining 1.34% during the session. Following a better-than-expected earnings report from NYSE Euronext (NYX), this ETF gapped significantly higher at the open. IAI ticked higher throughout the day, eventually settling near its high of $27.32 a share [see Financials Free ETFdb Portfolio].
ETF Fun Fact Of The Day
The best-performing regional strategy over the trailing one-week period has been the Africa-Centric Portfolio, which has gained 1.19%.
Disclosure: No positions at time of writing.