Wall Street recovered from its biggest one-day drop this year, as U.S. equities rallied to finish near session highs today. Bolstering stocks were a slew of upbeat earnings results and encouraging economic reports. The Commerce Department stated that construction of new homes jumped to the highest level since the financial crisis, while industrial production also rose more than expected. In earnings news, Coca-Cola (KO) and Johnson & Johnson (JNJ) both beat analysts expectations, while Goldman Sachs Group (GS) reported higher profit and revenue forecasts, but showed signs of weakness in trading revenue [see Free Member Report: How To Pick The Right ETF Every Time].Global Market Overview: Stocks Rebound From Worst One-Day Drop
Following today’s upbeat earnings and economic reports, all three major U.S. equity indexes rallied into positive territory. The Dow Jones Industrial Average ETF (DIA, B) gained 1.06%, as its underlying index soared 157.58 points. The S&P 500 ETF (SPY, A) rallied 1.48%, while the tech-heavy Nasdaq ETF (QQQ, A-) rose 1.33%.
In Europe, markets were mostly lower after the ZEW economic-sentiment indicator fell more than expected; the Stoxx Europe 600 slipped 0.8%. Meanwhile, Asian markets were mixed; Japan’s Nikkei Stock Average shed 0.4%, while China’s Shanghai Composite Index rose 0.6%.
Bond ETF Roundup
U.S. Treasury prices were lower today as investors piled back into stocks, shying away from the safe-haven asset. Yields on 10-year notes rose 3 basis points, while yields on 30-year bonds and 5-year notes rose 5 and 2 basis points, respectively [see also Seven Simple & Cheap ETF Model Portfolios].
Gold prices bounced back today from the biggest one-day drop in 30 years, as investors swooped in to take advantage of lower prices. Silver, platinum, and palladium also rallied. Meanwhile, crude oil futures ended flat, taking a break after a three-session decline.
ETF Chart Of The Day #1: (XLV)
The Health Care Select Sector SPDR ETF (XLV, A+) was one of the best performers today, gaining 1.44% during the session. After Johnson & Johnson (JNJ) reported better-than-expected first quarter earnings, this ETF gapped significantly higher at the open. XLV traded higher throughout the day, eventually settling at $47.74 a share [see Baby Boomers ETFdb Portfolio].
ETF Chart Of The Day #1: (XHB)
The SPDR Homebuilders ETF (XHB, A+) also posted a solid performance today, gaining 2.02% during the session. After the Commerce Department reported that construction of new homes jumped to the highest level since the financial crisis, this ETF gapped significantly higher at the open. XHB eventually settled at $28.74 a share [see Consumer Centric ETFdb Portfolio].
ETF Fun Fact Of The Day
The best-performing retirement strategy over the trailing 13-week period has been the Low Volatility Portfolio, which has gained 3.85%.
Disclosure: No positions at time of writing.
- Commerce Department