Bullish momentum returned on Wall Street today, pushing equities to the highest levels in almost three weeks as the Federal Reserve kicked off their two-day meeting to discuss its bond-buying program. In economic news, the consumer price index for May rose 0.1%, slightly below expectations. On the housing front, building permits fell in May, while housing starts rose 6.8% to 914,000 units, missing analysts’ expectations of a 950,000 figure [see The Cheapest ETF for Every Investment Objective].
As investors turned their attention to the Fed, all three major U.S. equity indexes rallied to close in positive territory. The Dow Jones Industrial Average ETF (DIA, A-) rose 0.87%, after its underlying index rallied 138.38 points. The S&P 500 ETF (SPY, A) gained 0.79%, while the tech-heavy Nasdaq ETF (QQQ, A-) rose 0.81%.
In Europe, markets were mixed ahead of the Fed’s press conference; the Stoxx Europe 600 slipped 0.1%. Meanwhile, Japan’s Nikkei Stock Average fell 0.2%, pulling back from yesterday’s 2.7% jump, while China’s Shanghai Composite inched 0.1% higher.
Bond ETF Roundup
U.S. Treasuries ended mixed today on Fed tapering concerns. Yields on 10-year notes rose 0.5 basis points, while 30-year bonds and 5-year note yields slid 1 and 0.5 basis points, respectively [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures traded higher today, settling above $98 a barrel on Mideast tensions. In other energy trading, natural gas and gasoline futures were slightly higher. Meanwhile, gold futures traded lower, settling at $1,366.90 an ounce, as investors weighed the possibility of the Fed tapering.
ETF Chart Of The Day #1: (XLI)
The Industrial Select Sector SPDR ETF (XLI, A) was one of the best performers today, gaining 1.19% during the session. Industrial shares were among today’s top performers, allowing this ETF to rally throughout the majority of the session. XLI settled at $44.16 a share [see Futures Free Commodity ETFdb Portfolio].
ETF Chart Of The Day #2: (VOX)
The Telecom ETF (VOX, A+) also posted a strong performance today, gaining 1.35% during the session. This ETF gapped slightly higher at the open, but then slid sideways for the remainder of the day, eventually settling at $79.63 a share [see High Tech ETFdb Portfolio].
ETF Fun Fact Of The Day
The best-performing themed strategy over the trailing 4-week period has been the GLD-Free Gold Bug ETFdb Portfolio, which has gained 0.21%.
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Disclosure: No positions at time of writing.