Wall Street endured yet another day of fiscal cliff budget negotiations, after ongoing talks between President Obama and Speaker John Boehner have heated up over the last few days. Senate Majority Leader Harry Reid however threw his hat into the commentary, stating that it will be nearly impossible for the split congress to come to a viable solutions by Christmas. He also emphasized his belief that Democrats aren’t going to make an offer on spending cuts for Republicans, which has been the party’s main sticking point. In economic news, wholesale inventories rose more than expected in October, though sales fell. The number of people leaving their jobs rose, while job openings edged up slightly higher last month [see also 101 High Yielding ETFs For Every Dividend Investor].
Global Market Overview: Stocks Gain Despite Fiscal Cliff Worries
All three major U.S. equities indexes managed to close in positive territory once again today. Tech-heavy Nasdaq (QQQ) came out on top with an impressive 1.18% gain, as Apple (AAPL) helped push the technology sector higher. The S&P 500 (SPY) gained 0.65%, while the Dow Jones Industrial Average (DIA) rose 0.60%. European equities closed mostly higher today after a surprise boost in German investor sentiment, which came in as the first positive reading since May. In Asia, markets were mixed even though Chinese reports showed a rise in industrial metals production. China’s Shanghai Composite eased 0.4%, while Japan’s Nikkei Stock Average fell 0.1% and Australia’s S&P ASX 200 rose 0.4%.
Bond ETF Roundup
U.S Treasury prices fell today after three rather impressive debt auctions managed to bring in strong demand from domestic investors even at the lowest yield on record for maturity. Yields on 10-year notes rose 3 basis points, while yields in 5-year notes rose 1 basis point and thirty-year bond yields increased 4 basis points to 2.84%.
Commodity ETF Roundup
Commodities were mostly mixed today, with Brent crude and WTI ending slightly higher. Wheat also led grains lower when prices dropped 3.2% after U.S. forecasters projected higher domestic supplies of the grain. Coffee and cotton futures however finished higher [see also Natural Gas Continues Its Slide].
ETF Chart Of The Day #1: XBI
The SPDR S&P Biotech ETF (XBI, B+) had an impressive performance today, gaining 1.95% during the session. With tech stocks leading the way, this ETF gapped slightly higher at the open, only to rally for the remainder of the day. XBI eventually settled near its high of $90.76 a share [see also Baby Boomers ETFdb Portfolio].
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ETF Chart Of The Day #2: PLND
The Market Vectors Poland ETF (PLND, B-) was one of the best performers of the day, gaining a whopping 2.48% during the session. Alongside a broad stock market rally, PLND gapped significantly higher at the open. The fund inched higher throughout the day, eventually settling near its high of $22.33 a share [see also Poland Bull Or Bear? ETFs To Play].
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ETF Fun Fact Of The Day
The best performing regional strategy from the trailing 4-week period is our Euro Free Europe Portfolio; this strategy is up 4.01%.
Disclosure: No positions at time of writing.
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