Lifted once again by another batch of strong earnings, stocks rallied as bullish momentum dominated Wall Street. Blue-chip giant IBM (IBM) reported fourth quarter earnings and revenues that topped analysts expectations and provided a 2013 earnings outlook that exceeded current projections. Google (GOOG) also beat analyst estimates, though revenues came in lower than expected. Meanwhile, McDonald’s (MCD) and United Technologies (UTX) also posted better-than-expected earnings. In Washington, investors cheered as the House of Representatives voted to suspend the U.S. debt ceiling through May 19 [see also Seven Simple & Cheap ETF Model Portfolios].
After several better-than-expected earnings reports, all three major U.S. equity index rallied to close in positive territory. Led by blue-chip giant IBM, the Dow Jones Industrial Average ETF (DIA, A-) logged in a 0.53% gain on the session. The S&P 500 ETF (SPY, A) rose 0.16%, while the tech-heavy Nasdaq ETF (QQQ, B+) gained 0.61%. In Europe, markets were mostly higher, with gains in German and U.K. equities offsetting weakness in France and Spain. Asian equities closed sharply lower today as investors continued to be pessimistic over the Bank of Japan’s new stimulus measures; Japan’s Nikkei Stock Average dropped 2.1%, while China’s Shanghai Composite inched 0.3% higher.
Bond ETF Roundup
U.S. Treasuries held onto gains today after the U.S. House of Representatives voted to extend the debt ceiling into May. Yields on 10 year notes slipped 2 basis points, while 5-year notes’ and 30-year bonds’ yields fell 1 basis point.
Crude oil futures sank 1.18% today to settle below $96 a barrel following the debt ceiling extension and news of limited capacity in the newly expanded Seaway Pipeline. Gold also slipped today after the European Commission reported that consumer morale in the euro zone was much higher in January.
ETF Chart Of The Day #1: (IYW)
The Dow Jones U.S. Technology Index Fund (IYW, A-) was one of the best performers today, gaining a 1.37% during the session. Following today’s better-than-earnings reports from IBM (IBM) and Google (GOOG), this ETF gapped significantly higher at the open. IYW slid sideways for the day, eventually settling at $73.08 a share [see High Tech ETFdb Portfolio].
ETF Chart Of The Day #2: (GEX)
The Market Vectors Global Alternative Energy ETF (GEX, B) also posted a solid performance today, gaining 2.14% during the session. After energy-efficient light maker Cree (CREE) provided an upbeat outlook for the current quarter, shares of the company soared, forcing this ETF to gap significantly higher at the open. GEX inched higher throughout the day, eventually settling at $11.94 a share [see Energy Bull ETFdb Portfolio].
ETF Fun Fact Of The Day
The best-performing regional strategy over the trailing thirteen week period has been the Ex-U.S. Portfolio, which has gained nearly 7.8%.
Disclosure: No positions at time of writing.