Bulls finally came off the sidelines today, pushing both the Dow and S&P 500 to five-year highs in yet another choppy trading session. On the economic front, the National Federation of Independent Business’s small-business optimism index rose less than expected for the month of January, while the number of U.S. job openings came in lower from a month earlier. Meanwhile, investors kept their focus on tonight’s State of the Union address, where many will be listening closely for any indication from President Obama on the direction in the sequestration spending talks [Be sure to check out the real estate news, trends, tips and tricks over at Dividend.com].
Ahead of Obama’s State of the Union address only two major U.S. equity indexes closed in positive territory. The tech-heavy Nasdaq ETF (QQQ, A) logged a 0.41% loss, dragged down by Apple (AAPL) and tech shares. The Dow Jones Industrial Average ETF (DIA, A-) rallied 0.38%, while the S&P 500 ETF (SPY, A) gained 0.16%. In Europe, markets ticked higher as finance ministers continued their discussions surrounding the euro zone’s debt crisis and recent price movements in the euro. In Asia, most equity markets remained closed for holiday. Japan’s Nikkei Stock Average, however, surged 1.9% after Economic Prime Minister Akira Amari expressed his desire to see the Nikkei reach 13,000 by the end of the fiscal year.
Bond ETF Roundup
U.S. Treasuries fell today after the Treasury Department sold $32 billion in 3-year notes at the highest auctioned yield since April. Yields on 5 and 10-year notes rose 3 basis points, while 30-year bond yields rose 1 basis point [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures settled higher today for a second straight session after the Organization of the Petroleum Exporting Counties lifted its 2013 demand forecast. Meanwhile gold closed unchanged as the dollar fell following a statement from the G7 reaffirming their commitment to market-determined exchange rates.
ETF Chart Of The Day #1: (KBWB)
The KBW Bank Portfolio (KBWB, B) was one of the best performers today, gaining 1.06% during the session. Financial shares climbed to fresh four-year highs today, forcing this ETF to gap slightly higher at the open. KBWB ticked slightly higher throughout the day, eventually settling near its high of $28.65 a share [see Risk On ETFdb Portfolio].
ETF Chart Of The Day #2: (MVV)
The Ultra MidCap400 ETF (MVV, A-) also posted a solid performance today, gaining 0.85% during the session. The S&P MidCap 400 Index hit an all-time high today, forcing this leveraged ETF to jump during the morning hours. MVV moved higher throughout the day, eventually settling at $87.80 a share [see Small Cap ETFdb Portfolio].
ETF Fun Fact Of The Day
The best-performing regional strategy over the trailing one-year period has been the Global Titans ETFdb Portfolio, which has gained 13.07%.
Disclosure: No positions at time of writing.