During the final hour of trading, U.S. equities rallied higher with the Dow Jones Industrial Average and S&P 500 hitting fresh highs and all three major averages posting their fourth-straight weekly gain. Bolstering stocks were a pair of domestic economic reports. The University of Michigan’s consumer sentiment index for May rose to its highest level since July of 2007. In a separate report, the Conference Board’s Leading Indicators also topped analysts’ expectations, rising 0.6% versus the forecasted 0.2% uptick [see The Cheapest ETF for Every Investment Objective].
Global Market Overview: YCS Pops On Strong Dollar, XLE Rallies
Following a pair of upbeat economic reports, all three major U.S. equity indexes rallied to close in positive territory. The Dow Jones Industrial Average ETF (DIA, B) ended 0.70% higher, after its underlying index hit a fresh all-time high. The S&P 500 ETF (SPY, A) rose 0.94%, while the tech-heavy Nasdaq ETF (QQQ, A-) gained 0.90%.
In Europe, markets ended slightly after encouraging auto data was reported: the Stoxx Europe 600 rose 0.2%. Meanwhile, Asian markets were higher amidst optimism of increased Chinese government spending; Japan’s Nikkei Stock Average rose 0.7%, while China’s Shanghai Composite Index popped 1.4%.
Bond ETF Roundup
U.S. Treasury prices fell today following better-than-expected consumer sentiment data. Yields on 10-year notes rose 5 basis points, while 30-year bond and 5-year note yields rose 5.5 and 3 basis points, respectively [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures rose once again today, settling above $96 a barrel, following the encouraging consumer sentiment report. Prices for gasoline and natural gas were also higher. Meanwhile, gold futures declined for a seventh straight day on a stronger dollar, posting its longest losing streak in four years.
ETF Chart Of The Day #1: (XLE)
The Energy Select Sector SPDR (XLV, A+) was one of the best performers today, gaining 1.67% during the session. Energy shares were among today’s top performers, allowing this ETF to gap higher at the open. XLE inched higher throughout the day, eventually settling at $82.12 a share [see Energy Bull ETFdb Portfolio].
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ETF Chart Of The Day #2: (YCS)
The UltraShort Yen Fund (YCS, A-) also posted a strong performance today, gaining 1.84% during the session. After the dollar rallied against the yen, this ETF gapped higher at the open. YCS pushed higher throughout the day, eventually settling at $70.24 a share [see Asia-Centric ETFdb Portfolio].
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ETF Fun Fact Of The Day
The best-performing regional strategy over the trailing 4-week period has been the Euro Free Europe Portfolio, which has gained 5.04%.
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Disclosure: No positions at time of writing.
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