Bullish momentum returned on Wall Street today, pushing equities to the highest levels in almost three weeks as the Federal Reserve kicked off their two-day meeting to discuss its bond-buying program. In economic news, the consumer price index for May rose 0.1%, slightly below expectations. On the housing front, building permits fell in May, while housing starts rose 6.8% to 914,000 units, missing analysts’ expectations of a 950,000 figure [see The Cheapest ETF for Every Investment Objective].
Global Market Overview: XLI Rallies Alongside Industrials, VOX Pops
As investors turned their attention to the Fed, all three major U.S. equity indexes rallied to close in positive territory. The Dow Jones Industrial Average ETF (DIA, B) rose 0.87%, after its underlying index rallied 138.38 points. The S&P 500 ETF (SPY, A) gained 0.79%, while the tech-heavy Nasdaq ETF (QQQ, A-) rose 0.81%.
In Europe, markets were mixed ahead of the Fed’s press conference; the Stoxx Europe 600 slipped 0.1%. Meanwhile, Japan’s Nikkei Stock Average fell 0.2%, pulling back from yesterday’s 2.7% jump, while China’s Shanghai Composite inched 0.1% higher.
Bond ETF Roundup
U.S. Treasuries ended mixed today on Fed tapering concerns. Yields on 10-year notes rose 0.5 basis points, while 30-year bonds and 5-year note yields slid 1 and 0.5 basis points, respectively [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures traded higher today, settling above $98 a barrel on Mideast tensions. In other energy trading, natural gas and gasoline futures were slightly higher. Meanwhile, gold futures traded lower, settling at $1,366.90 an ounce, as investors weighed the possibility of the Fed tapering.
ETF Chart Of The Day #1: (XLI)
The Industrial Select Sector SPDR ETF (XLI, A+) was one of the best performers today, gaining 1.19% during the session. Industrial shares were among today’s top performers, allowing this ETF to rally throughout the majority of the session. XLI settled at $44.16 a share [see Futures Free Commodity ETFdb Portfolio].
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ETF Chart Of The Day #2: (VOX)
The Telecom ETF (VOX, A+) also posted a strong performance today, gaining 1.35% during the session. This ETF gapped slightly higher at the open, but then slid sideways for the remainder of the day, eventually settling at $79.63 a share [see High Tech ETFdb Portfolio].
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ETF Fun Fact Of The Day
The best-performing themed strategy over the trailing 4-week period has been the GLD-Free Gold Bug ETFdb Portfolio, which has gained 0.21%.
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Disclosure: No positions at time of writing.
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