Courtesy of John Nyaradi.
ETFs and Indexes bounce back today on positive economic reports
Major indexes and ETFs rebounded today after yesterday’s losses. The S&P 500 added .43%, the Dow Jones Industrial Average increased .36%, the NASDAQ Composite popped .81%, and the Russell 2000 Index rose 1.56%. Index ETFs followed along as the SPDR S&P 500 ETF (NYSEARCA:SPY) added .44%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) increased .34%, the PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ) increased .66%, and the iShares Russell 2000 Index ETF (NYSEARCA:IWM) added 1.50%.
Despite Europe possibly heading for a recession soon, US markets and ETFs rebounded today after yesterday’s losses, likely because of a positive Kansas City Fed report and sustained unemployment levels. The Kansas City Fed report indicated that manufacturing in the area had increased while unemployment claims stood still at 351,000 claims compared to last week.
Although Europe appears to be on the brink of recession as stated by the European Comission, America’s economic recovery continues to chug along despite serious headwinds from across the Atlantic. With Greece at least settled and out of the news for now, investors have seemed to place renewed confidence in the American system at large. Keep in mind however that Greece could easily topple over the cliff at any moment and that larger issues such as Portugal, Spain, and Italy remain on the horizon.
Tomorrow brings new Consumer Sentiment and New Home Sales reports, and Greece and Europe will likely continue to be in the spotlight; both economic reports and Greece alone could send markets up or down, the direction is really anyone’s guess at this point.
Bottom Line: Today’s ETFs rebounded after yesterday’s losses, likely on today’s positive economic reports. Although Greece and Europe are more or less out of the news for now, they still remain in the pressure cooker, and will likely stay there for a while, especially if a EU recession starts again. Hang on tight, its almost Friday.
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