Following a better-than-expected labor report, U.S. equities ripped higher, with the Dow Jones Industrial Average rising above 15,000 and the S&P 500 topping the 1,600 level during the session. According to the Labor Department, April saw 165,000 new jobs and the unemployment rate fell to a four year low of 7.5%. Non-farm payrolls also came in better than expected. In other economic news, the Institute for Supply Management reported that its non-manufacturing index rose in April, but at a slower pace than expected [see The Cheapest ETF for Every Investment Objective].
Following today’s encouraging labor report, all three major U.S. equity indexes rallied to close in positive territory. The S&P 500 ETF (SPY, A) rose 1.01%, as its underlying index soared above 1,600. The Dow Jones Industrial Average ETF (DIA, B) ended 0.95% higher, while the tech-heavy Nasdaq ETF (QQQ, A-) popped 1.18%.
In Europe, markets were broadly higher; the Stoxx Europe 600 surged 1.1%, while Germany’s DAX rallied 2%. Meanwhile, Asian markets were mostly higher; China’s Shanghai Composite Index jumped 1.4%, while Japanese markets were closed for a holiday.
Bond ETF Roundup
U.S. Treasury prices tumbled after labor data came in better than expected. Yields on 10-year notes rose 12 basis points, while 30-year bond and 5-year notes rose 14 and 8 basis points, respectively [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures jumped today after a better-than-expected U.S. labor report bolstered optimism for energy demand; for the month, oil has gained 2.8%. Gasoline and natural gas futures were also higher. Meanwhile, gold futures ended flat, but slightly up for the week.
ETF Chart Of The Day #1: (IAK)
The Dow Jones U.S. Insurance Fund (IAK, B+) was one of the best performers today, gaining 1.87% during the session. After insurance giant American International Group (AIG) posted better-than-expected earnings, this ETF gapped significantly higher at the open. IAK slid sideways for the remainder of the day, eventually settling at $39.79 a share [see Futures Free Commodity ETFdb Portfolio].
ETF Chart Of The Day #1: (DBB)
The DB Base Metals Fund (IYW, A) also posted a strong performance today, gaining a whopping 4.38% during the session. As copper futures rallied more than 6% today, this ETF gapped significantly higher at the open. DBB inched higher throughout the day, eventually settling at $17.17 a share [see Commodity Guru ETFdb Portfolio].
ETF Fun Fact Of The Day
The best-performing regional strategy over the trailing 4-week period has been the Asia-Centric ETFdb Portfolio, which has gained 3.69%.
Disclosure: No positions at time of writing.