It was a tumultuous day on Wall Street today, after a false tweet nearly derailed the markets. During the afternoon hours, the Twitter account of the Associated Press was hacked, and a tweet claiming that there were two explosions in the White House and that Obama was injured sent markets veering; the Dow plunged 145 points in less than two minutes, U.S. Treasury bond prices soared, and oil briefly dipped. Despite the knee-jerk reaction traders had to the Twitter debacle, markets manged to recover to end higher. Lesson of the day: buy the rumor, sell the tweet [see Free Member Report: How To Pick The Right ETF Every Time].
Global Market Overview: Buy The Rumor, Sell The Tweet
Despite today’s rather bizarre Twitter episode, all three major U.S. equity indexes managed to close in positive territory. The Dow Jones Industrial Average ETF (DIA, B) ended 1.02% higher, as its underlying index rallied 152.29 points. The S&P 500 ETF (SPY, A) rose 1.03%, while the tech-heavy Nasdaq ETF (QQQ, A-) jumped 0.96%.
In Europe, markets were higher as investors are optimistic that the eurozone is moving towards policies that stimulate growth; the Stoxx Europe 600 rallied 2.4%. Meanwhile, Asian markets were lower; Japan’s Nikkei Stock Average slipped 0.3%, while China’s Shanghai Composite Index tumbled 2.6% after the HSBC’s preliminary purchasing manager’s index declined more than expected.
Bond ETF Roundup
U.S. Treasury prices were slightly lower in today’s choppy trading session. Yields on 5-year notes traded roughly flat at 0.694%, while yields on 30-year bonds and 10-year notes rose less than one basis point [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures remained essentially unchanged as investors look ahead to the latest U.S. petroleum-supply figures. Natural gas and gasoline futures, however, traded slightly lower. Meanwhile, gold futures logged in their first loss in four sessions following today’s disappointing manufacturing data from China.
ETF Chart Of The Day #1: (IAK)
The Dow Jones U.S. Insurance Index Fund (IAK, B+) was one of the best performers today, gaining 2.52% during the session. After Travelers (TRV) reported earnings that came in well above expectations and announced an increased dividend, this ETF gapped significantly higher at the open. IAK pushed higher throughout the day, eventually settling at $38.28 a share [see Financials Free ETFdb Portfolio].
Click To Enlarge
ETF Chart Of The Day #1: (XHB)
The SPDR Homebuilders ETF (XHB, A+) also posted a strong performance today, gaining 2.56% during the session. After D.R. Horton, Inc. (DHI) announced that sales of new single-family homes rose 1.5% in March, this ETF gapped significantly higher at the open. XHB slid sideways for the remainder of the day, eventually settling at $29.65 a share [see Consumer Centric ETFdb Portfolio].
Click To Enlarge
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 12.73%.
Disclosure: No positions at time of writing.
- Daily ETF Roundup: Stocks Rebound From Worst One-Day Drop In 2013
- Daily ETF Roundup: Housing Data Brings Back The Bulls
- Daily ETF Roundup: Dow Hits Multi-year High
- Daily ETF Roundup: Bargain Shopping Euphoria Sparks Rally
- Daily ETF Roundup: Housing Soars, Earnings Miss