While investors kept a close watch on budget negotiations, a slew of better-than-expected economic reports and upbeat commentary from China’s new leader helped stocks claw their way out of negative territory. The Institute for Supply Management’s non-manufacturing purchasing index rose in the month of November, exceeding analyst’s expectations for a drop in service sector activity. Factory orders also rose, though the Automatic Data Processing’s and Moody’s Analystics’ reading on November hiring came in lower than expected. On the corporate front, Apple dominated the headlines, as the stock tumbled more than 6%, the worse single day decline since 2008, after the company announced that it will be raising its margin requirements [see also 101 ETF Lessons Every Financial Advisor Should Learn].
Global Market Overview: Blue Chips Rally While Apple Tumbles
The majority of U.S. equities finally managed to snap their loosing streak to post modest gains on the day. Tech-heavy Nasdaq (QQQ), however, logged in a 0.77% loss following Apple’s steep drop. The S&P 500 (SPY) inched 0.16% higher, while the Dow Jones Industrial Average (DIA) came out on top with its 0.64% gain. In Europe, markets were mostly higher, with the Stoxx Europe 600 rising 0.2%. Asian equities closed in positive territory after China’s new leader, Xi Jinping, made promising comments about the economy. China’s Shanghai Composite rallied 2.9%, while Japan’s Nikkei Stock Average inched 0.4% higher.
Bond ETF Roundup
Lack of progress in Washington pushed U.S. Treasury prices higher once again today; yields on 5 and 10-year notes declined 2 basis points, while yields on 30-year bonds fell 1 basis point to 2.78%.
Commodity ETF Roundup
Commodities were mostly higher today, with gold, copper, wheat, soybeans, and corn posting modest gains. Brent, however, ticked lower after mixed data from the U.S. and eurozone raised demand fears and an inventory report showed higher levels of supplies. Natural gas also made headlines, as the fossil fuel rallied 4.5% [see also Jim Rogers: There's Too Much Speculation In Gold].
ETF Chart Of The Day #1: IYW
The iShares Dow Jones U.S. Technology Index Fund (IYW, A) was one of the worst performers today, shedding a dismal 1.29% during the session. Apple shares (AAPL), which receive a hefty 23.37% weighting in IYW, tumbled 6% today, forcing this ETF to gap significantly lower at the open. IYW took a steep plunge during late morning hours, only to trade sideways for the remainder of the day. The fund eventually settled near its low of $69.46 a share [see also High Tech ETFdb Portfolio].
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ETF Chart Of The Day #2: PEK
The Van Eck Market Vectors China ETF (PEK, C) was one of the best performers of the day, gaining a whopping 3.78% during the session. Following China’s new leader Xi Jinping’s encouraging commentary about the state of the nation’s economy, this ETF gapped significantly higher at the open. PEK traded sideways for the rest of the day, eventually settling near its high of $32.62 a share [see also Get Rid Of Your Emerging Market ETF Volatility Problem Once And For All].
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ETF Fun Fact Of The Day
The best performing regional strategy from the trailing 1-year period is our Global Titans ETFdb Portfolio; this strategy is up 14.18%.
Disclosure: No positions at time of writing.
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