The presidential debates are underway and U.S. markets are looking to close out another week in bright green territory. Bullish pressures emerged right from the opening bell today as better-than-expected jobless claims data helped to inspire optimism in anticipation of tomorrow’s monthly employment report. The ECB held rates steady at 0.75% as anticipated, while the latest Fed minutes were well-received as policymakers noted they could manage the risk associated with the latest round of easing [see Free Report: Seven Simple & Cheap All-ETF Model Portfolios].
Global Market Overview: Jobs Optimism Bolsters Stocks
On Wall Street, the S&P 500 led the way with SPY popping 0.71% on the day, while the Dow Jones Industrial Average (DIA) trailed closely behind, gaining 0.62% as the session ended. European stocks enjoyed an even more bullish day as the ECB affirmed its low-rate policy in an effort to ease the region’s debt burden. Asian markets also rallied higher as global stimulus efforts continue to welcome back bullish investors.
Bond ETF Roundup
Demand for safe haven U.S. Treasuries declined as “risk on” sentiment swept over Wall Street; this was evidenced by the price divergence seen in the fixed income market, with “junk” bonds gaining as investment-grade securities dropped.
Commodity ETF Roundup
Buying pressures spilled over into the commodity market as well, helping to pave the way higher for nearly every good. Crude oil took the lead with ease on the day as traders were quick to buy up beat down futures following yesterday’s brutal sell-off. Furthermore, a declining U.S. dollar only added to the tailwinds seen in this corner of the market.
ETF Chart Of The Day #1: GDX
The Van Eck Market Vectors TR Gold Miners (GDX) was one of the best performers, gaining a solid 2.90% on the day. Futures prices for the precious yellow metal climbed higher from the opening bell, settling just shy of the $1800 level, which led to higher ground for the miners as well. GDX maintained its upward trajectory throughout the entire session, managing to close near its peak backed by high trading volumes [see also Ten Tell-Tale Signs You're a Gold Bug].
ETF Chart Of The Day #2: VXX
The Barclays iPath S&P 500 VIX Short-Term Futures ETN (VXX) was one of the worst performers, shedding 2.59% on the day. Volatility levels plunged as optimism permeated the marketplace following the release of better-than-expected weekly jobless claims data. With the bulls in the driver seat, the Volatility Index (VIX) plunged nearly 6% on the day, settling just below the 15 mark [see our Low Volatility ETFdb Portfolio].
ETF Fun Fact Of The Day
The best performing regional portfolio is our BRIC-Or-Bust ETFdb Portfolio in the trailing 4-week period; this strategy is up 6.30% .
Disclosure: No positions at time of writing.
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