U.S. equities closed at record highs today after the legendary hedge fund manager David Tepper commented that he is “definitely bullish” on stocks. In an interview with CNBC, Tepper also cited that he sees an improving economy, particularly in the housing and auto markets, as reasons to be bullish. Meanwhile in economic news, U.S. small-business optimism for the month of April came in above expectations, though import prices declined last month from the previous reading [see The Cheapest ETF for Every Investment Objective].Global Market Overview: S&P Posts Record High, XLF And XLE Rally
After a lackluster trading session, only two major U.S. equity indexes managed to close in positive territory. The S&P 500 ETF (SPY, A) rallied 1.03%, as its underlying index rose to hit a new record high of 1650.34. The Dow Jones Industrial Average ETF (DIA, B) ended 0.84% higher, while the tech-heavy Nasdaq ETF (QQQ, A-) rose 0.52%.
In Europe, markets followed U.S. equities higher, though German economic sentiment came in below expectations while euro-zone industrial production rose: the Stoxx Europe 600 reversed earlier losses to close up 0.4%. Meanwhile, Asian markets were lower; China’s Shanghai Composite Index fell 1.1%, while Japan’s Nikkei Stock Average slipped 0.2%.
Bond ETF Roundup
U.S. Treasury prices were lower, extending their losing streak as equity markets rallied. Yields on 10-year notes rose 2 basis points, while 30-year bond and 5-year not yields rose 4 and 1.5 basis points, respectively [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures traded lower once again today, settling below $95 a barrel, after the International Energy Agency indicated that the increase in North American production was a “supply shock” that is sending “ripples through the world”. Meanwhile, gold also settled lower as another intraday record high shifted investors away from the safe-haven metal.
ETF Chart Of The Day #1: (XLF)
The Financial Select Sector SPDR (XLF, A) was one of the best performers today, gaining 1.71% during the session. Financial shares were among today’s top performers, forcing this ETF jump during the morning hours. XLF inched higher throughout the day, eventually settling at $19.64 a share [see Financials Free ETFdb Portfolio].
ETF Chart Of The Day #2: (XLE)
The Energy Select Sector SPDR (XLE, A) also posted a strong performance, gaining 1.42% during the session. As energy shares helped push U.S. equities higher, this ETF jumped significantly higher at the open. XLE pushed higher throughout the day, eventually settling at $81.40 a share [see Energy Bull ETFdb Portfolio].
ETF Fun Fact Of The Day
The best-performing themed strategy over the trailing 1-year period has been the Simple (But Effective) Safe Haven ETFdb Portfolio, which has gained 9.88%.
Disclosure: No positions at time of writing.
- David Tepper