Reversing earlier losses, U.S. equities closed higher once again today with the S&P 500 and Dow Jones Industrial Average logging in fresh highs. In economic news, industrial production for April fell more than expected, while the Federal Reserve Bank of New York reported a disappointing reading for its May Empire State index of manufacturing activity. Elsewhere, home builder’s confidence came in above expectations, while the producer-price index for April fell slightly more than expected [see The Cheapest ETF for Every Investment Objective].
Global Market Overview: XLP Rallies Alongside Consumer Staples, INDY Pops
Following a slight morning pullback, all three major U.S. equity indexes managed to close in positive territory. The S&P 500 ETF (SPY, A) rose 0.54%, as its underlying index rose to hit a new record high of 1658.78. The Dow Jones Industrial Average ETF (DIA, B) ended 0.43% higher, while the tech-heavy Nasdaq ETF (QQQ, A-) rose 0.22%.
In Europe, markets ended slightly higher though the euro-zone economy was reported to have contracted for a sixth straight quarter: the Stoxx Europe 600 reversed earlier losses to close up 0.8%. Meanwhile, Asian markets were mostly higher; Japan’s Nikkei Stock Average slipped rallied 2.3% on a weaker yen.
Bond ETF Roundup
U.S. Treasury prices traded higher, snapping their losing streak, following weak global economic data. Yields on 10-year notes fell 3.5 basis points, while 30-year bond and 5-year note yields fell 3.5 and 3 basis points, respectively [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures ended their losing losing streak, closing marginally higher after the U.S.’s crude supplies were reported to have declined last week. Prices for gasoline and natural gas were also higher. Meanwhile, gold futures tumbled 2% on a stronger dollar.
ETF Chart Of The Day #1: (XLP)
The Consumer Staples Select Sector SPDR (XLF, A) was one of the best performers today, gaining 1.01% during the session. Consumer staples shares were among today’s top performers, allowing this ETF to rally throughout the majority of the day. XLP slid sideways during the final hours of trading, eventually settling at $42.14 a share [see Consumer Centric ETFdb Portfolio].
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ETF Chart Of The Day #2: (INDY)
The S&P India Nifty Fifty Index Fund (INDY, C+) also posted a strong performance, gaining 2.26% during the session. As investors piled into riskier assets, this ETF gapped significantly higher at the open. INDY slid sideways for the remainder of the day, eventually settling at $25.82 a share [see BRIC-or-Bust ETFdb Portfolio].
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ETF Fun Fact Of The Day
The best-performing regional strategy over the trailing 1-year period has been the Euro Free Europe Portfolio, which has gained 21.91%.
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Disclosure: No positions at time of writing.
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