A slew of better-than-expected economic reports helped U.S. equities erase most of the previous session’s losses during today’s session. The S&P Case-Shiller 20-City home price index was reported to have risen 12.1% in April from a year earlier, topping analysts forecasts of an 11.1% increase. Durable goods orders also beat expectations, rising 3.6% in May from April versus the expected 3.2% uptick. In separate reports, new home sales rose 2.1% to a seasonally adjusted 476,000, while the Conference Board’s Consumer Confidence Index rose to 81.41 – the highest level in five years [see The Cheapest ETF for Every Investment Objective].Global Market Overview: Equities Recover, IYR And XHB Rally On Upbeat Housing Data
Following today’s upbeat economic reports, all three major U.S. equity indexes rallied to close in positive territory. The Dow Jones Industrial Average ETF (DIA, B) gained 0.70% after its underlying index rallied nearly 150 points. The S&P 500 ETF (SPY, A) rose 0.96%, while the tech-heavy Nasdaq ETF (QQQ, A-) closed 0.63% higher.
In Europe, markets were broadly higher after a Bank of England official emphasized that central banks will not be raising interest rates any time soon; the Stoxx Europe 600 jumped 1.5%. Meanwhile, Japan’s Nikkei Stock Average fell 0.72%, while China’s Shanghai Composite managed to close down 0.2% after an earlier sell-off.
Bond ETF Roundup
U.S. Treasuries traded lower today following yesterday’s steep sell off and soft government auction of 2-year notes. Yields on 10-year notes rose 5.5 basis points to 2.531% after rising as high as 2.661%, while 30-year bonds and 2-year note yields rose 7 and 2 basis points, respectively [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures traded slightly higher today, settling just above $95 a barrel, ahead of weekly supply data. In other energy trading, natural gas and gasoline futures traded lower. Meanwhile, gold futures traded slightly lower on a stronger dollar.
ETF Chart Of The Day #1: (IYR)
The Dow Jones U.S. Real Estate Index Fund (IYR, A) was one of the best performers today, gaining 1.84% during the session. Following today’s better-than-expected Case-Shiller 20-City home price index report, this ETF jumped during the morning hours. IYR inched higher throughout the day, eventually settling at $65.19 a share [see Aggressive Portfolio].
ETF Chart Of The Day #2: (XHB)
The SPDR Homebuilders ETF (HAO, A) also posted a strong performance today, gaining 1.44% during the session. Encouraging new home sales data allowed this ETF to gap significantly higher at the open. XHB slid sideways for the remainder of the day, eventually settling at $28.83 a share [see Kitchen Sink ETFdb Portfolio].
ETF Fun Fact Of The Day
The best-performing retirement strategy over the trailing 5-year period has been the free ETF newsletter]
Disclosure: No positions at time of writing.