[Chart courtesy of MarketWatch.com]
Soaring consumer confidence and falling oil prices triggered a rally in US stocks as the Dow Jones Industrial Average closed over the psychologically important 13,000 mark for the first time since May ’08.
The DJIA ended at 13,005.12, a gain of 0.2 percent, while the S&P 500 added 0.3 percent to close at 1,372.18, its highest level in four years. The NASDAQ Composite rose 20.60 points to 2,986.76, its fourth straight day of gains, and the highest level since December 2000.
Continued worry over contagion effect in the EU and U.S. notes purchased by the Federal Reserve drove yields on 10-year notes to near three-week low Tuesday. As stocks rebounded over strong consumer confidence news, Treasuries erased early gains indicating better risk appetite. Yields on 10-year notes remained near flat for the day at 1.93 percent.
As investors turned to fundamental indicators for insights, economic data releases took center-stage on Tuesday. Durable goods orders were lower by 4 percent compared to a growth of 3.2 percent last month. Housing market data also failed to cheer as the latest Case-Shiller home prices reading came in lower at negative 1.1 percent, though it’s an improvement over last month’s negative 1.3 percent.
A rally in gold spot prices pushed the Gold Miners ETF (GDX) higher 2.27 percent for the day, one of the day’s biggest gainers. The United States Gas Fund (UNG), one of the biggest losers, sank 2.99 percent for the day but continues to inch towards its long-term trend line. The record low in recent gas prices have continues to weigh ETP down.
However, the iShares Silver Trust (SLV), after adding 4.3 percent, remained the day’s top dog as investors remained bullish on the white metal’s future.
Also Market Vectors India Small Cap Index ETF (SCIF), which I don’t follow due to low volume, was among the day’s winners after adding 4.41 percent over previous close.
The India Fund (IIF) also did well and added more than 2 percent in afternoon trading.
In stocks, Apple (AAPL) shares jumped to an all-time high of $530 a share over speculations on the impending launch of iPad3 next week. Also among tech stocks, Micron gained after Intel said it will sell stakes in two wafer manufacturing facilities to the chipmaker.
Oil futures for April delivery sank for the second day, shedding $2.01 to end at $106.55 a barrel.
Gold futures for April delivery added $13.50 on the day to close at $1788.40 an ounce.
Our Trend Tracking Indexes (TTIs) improved their position above their respective trend lines with the Domestic TTI now being at +5.85%, while the International TTI hovers at +5.44%.
Disclosure: No holdings in ETFs discussed