U.S. equities ended the week on a strong note as investors weighed labor data against the possibility of the Fed maintaining its bond-buying program over the next few months. In economic news, the Labor Department reported that the U.S. added 175,000 jobs in May, slightly above analysts’ expectations. The unemployment rate, however, ticked higher from 7.5% to 7.6%, leading many investors to think that the central bank will continue its current stimulus measures [see The Cheapest ETF for Every Investment Objective].
Following today’s U.S. unemployment report, all three major U.S. equity indexes rallied to close in positive territory. The Dow Jones Industrial Average ETF (DIA, A) gained 1.38% after its underlying index shot up more than 200 points. The S&P 500 ETF (SPY, A) rose 1.25%, while the tech-heavy Nasdaq ETF (QQQ, B+) rallied 1.41%.
In Europe, markets were broadly higher; the Stoxx Europe 600 rose 1.3%. Meanwhile, Asian equities were mostly lower; Japan’s Nikkei Stock Average slipped 0.2%, while China’s Shanghai Composite Index tumbled 1.4% ahead of inflation data slated to be released over the weekend.
Bond ETF Roundup
U.S. Treasury prices fell as investors weighed today’s U.S. labor data against potential Fed policy changes. Yields on 10-year notes rose 8 basis points, while 30-year bond yields rose 7 basis points [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures rallied once again, settling above $96 a barrel and posting a weekly gain of more than 4%. In other energy trading, natural gas futures ended flight while gasoline traded slightly higher. Meanwhile, gold fell roughly 2% on today’s strong labor data.
ETF Chart Of The Day #1: (XLI)
The Industrial Select Sector SPDR (XLI, A) was one of the best performers today, gaining 1.88% during the session. Industrial shares were among today’s top performers, allowing this ETF to gap slightly higher at the open. XLI inched higher throughout the day, eventually settling at $43.79 a share [see Commodity Guru ETFdb Portfolio].
ETF Fun Fact Of The Day
The best-performing retirement strategy over the trailing 13-week period has been the Cheapskate Portfolio, which has gained 2.90%.
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Disclosure: No positions at time of writing.