Major Market ETFs advanced on Thursday, pushing the S&P 500 index past the 1,400 level for the first time since June 2008, as better-than-expected economic data reinforced the recovery theory.
Latest data showed jobless claims dropping to their lowest level in four years, manufacturing activity picking up and headline inflation being put under control.
Treasuries ended the day near flat after witnessing heavy losses earlier, pushing the benchmark 10-year yield down from the highest levels seen in more than four months.
The Dow Jones Industrial Average (DJIA) rose 0.4 percent to 13,252.76, advancing for the seventh straight day, its longest winning streak since Feb. 9, 2011.
The S&P 500 Index (SPX) went up 0.6 percent to end at 1402.60, its highest level since June 2008. Only utilities in the 10-sector index closed lower while financials advanced the most.
The tech-heavy NASDAQ Composite (COMP) climbed 0.5 percent to end at 3056.37, the highest close since Nov. 2000.
As bargain hunters descended on an oversold market, Treasuries erased previous losses. Yields on 10-year notes closed near flat at 2.28 percent after hitting a high of 2.35 percent in early trading. Yield on 30-year bonds also closed lower at 3.41 percent, after jumping to 3.49 percent in overnight sessions. 10-year Treasuries have already declined 2.5 percent in March and may register its biggest monthly drop since Dec. 2010.
ETFs in news:
The iPath Dow Jones UBS Natural Gas Subindex Total Return ETN (GAZ) zoomed 6.67 percent on the day, topping the gainers chart. However, more than 110 percent premium can be attributed to the sudden surge and caution is advised if this arena appeals to you.
Buoyed by economic recovery, the iShares Dow Jones Transportation Average Index Fund (IYT) clocked 3.33 percent gain. US transport sector is upbeat over strong manufacturing and unemployment data and IYT is nearly 7 percent up YTD.
Market Vectors Vietnam ETF (VNM) added 6.43 percent for the day after three days of losses though other Asia focused products witnessed moderate action.
Among the day’s losers, Market Vectors India Small Cap ETF (SCIF) tumbled 1.39 percent despite starting the year strong and is struggling to consistently stay above the 200-day moving average.
The Barclays iPath S&P 500 VIX Short-Term Futures ETN (VXX) remained a laggard, shedding 1.47 percent on the day as equities surged.
In regards to trends, both of our Trend Tracking Indexes (TTIs) remain solidly entrenched on the bullish side.
Disclosure: No holdings
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