US stocks closed mixed Tuesday with the broad market holding onto gains as investors welcomed encouraging Q1 corporate results, while Netflix’s weaker-than-expected outlook weighed NASDAQ down.
Apple Inc came under selling pressure ahead of its earnings report after the close. As was hoped for, Apple delivered beyond expectations which may bode well for a positive opening tomorrow.
The yield on benchmark 10-year Treasuries retreated for the first time in a week pushing prices up as the Federal Reserve got ready for its two-day FOMC meeting from tomorrow.
On the economic front, however, markets were disappointed with the Feb. S&P/Case-Shiller Home Price Index reading sinking a further 3.5 percent over last, hitting its lowest mark since Nov. 2002. Also Consumer Confidence Index fell to 69.2 in April from 70.2 in March. US Census report showed new home sales in March slipped 7.1 percent to an annual rate of 328,000, slightly bettering economists’ estimate of 318,000.
All in all, a very murky economic picture at best.
The Dow Jones Industrial Average (DJIA) climbed 0.6 percent to recapture the 13K mark while the S&P 500 Index (SPX) added 0.4 percent to close at 1371.97. The telecom sector topped the gainer’s list while tech remained the laggard among the 10 industry groups.
The tech-heavy NASDAQ Composite Index (COMP) dropped 0.3 percent to close at 2961.60 following online video-streaming provider Netflix’s crash on weak Q1 results.
ETFs in the news:
The Proshares Ultra KBW Region Banking ETF was among the day’s top performers, gaining 2.82 percent. The fund seeks 200 percent return daily tracking the KBW Regional Banking Index.
The iShares Dow Jones U.S. Home Construction Index Fund (ITB) gained 2.76 percent despite March new home sales data coming in lower.
Another real estate related fund, the ProShares Ultra Real Estate (URE) also showed strength today, possibly over the news that February numbers were revised upwards. However, if you belong to the conservative camp, avoid this ETF since the real estate industry is still under pressure.
The iShares MSCI Italy Index Fund (EWI) rose 1.68 percent today after retreating yesterday over European turmoil. The fund has hit 2012 lows and will be an interesting watch in future.
Among the day’s top losers, the premium-heavy iPath Dow Jones UBS Natural Gas Subindex Total Return ETN (GAZ) tumbled 3.15 percent, ending in the negative territory for the third day. You may want to stay away from this area if risk taking is not your forte.
The ProShares UltraShort MSCI Japan (EWV) slipped 2.44 percent for the day. This fund generates twice the inverse performance of the MSCI Japan Index daily and may display added volatility.
The S&P 500 VIX Short-Term Futures Index tracking ProShares VIX Short-Term Futures ETF (VIXY) dropped 2.41 percent as risk appetite improved over strong Q1 results. Fear-tracking products can be volatile during the earnings season.
There were no newsworthy changes to our Trend Tracking Indexes (TTIs).
Disclosure: No holdingsContact Ulli