Supported by technology sector, the Dow (DJIA) logged in its sixth day of gains as US stocks ended mixed Wednesday.
The S&P 500 however, closed lower after a day of big advances as investors remained edgy following Tuesday’s stress-test results of US banks. The Dow Jones Industrial Average climbed 0.1 percent to end at 13,194.10.
The S&P 500 Index (SPX) however, shed 0.1 percent to close at 1394.28. Utilities were the biggest losers while tech and financial gained among the 10-sector industry groups.
The tech-heavy NASDAQ Composite (COMP) added 0.85 point to close at 3040.73. Apple Inc (AAPL) hit an all time Wednesday with shares trading close to $600 apiece, a gain of 3.8 percent on the day.
US government debt’s safe-haven appeal diminished after the Fed raised its assessment of the US economy. Treasuries tumbled for the sixth day as yields on 10-year Treasury notes rose to its highest level in four months.
Treasuries tanked Wednesday with the benchmark 10-year yield settling at 2.28 percent, a gain of 16 basis points for the day. Yield on 30-year bonds surged 0.16 percentage points to 3.42 percent, its highest level since Oct.28.
Auction of US government 30-year bonds registered a yield of 3.383 percent on weak demand, the highest since August.
ETFs in news:
As risk sentiment improves and investors reduce exposure in safe haven asset classes, ProShares UltraShort 20+ Year Treasury Bond ETF (TBT) manages to push ahead to Nov. levels, adding 5.02 percent on the day.
The iPath S&P 500 VIX Short Term Futures ETN (VXX) surged 3.25 percent after five days of consecutive losses.
A couple of positive sessions have driven the iShares MSCI European Financials Index Fund (EUFN) to 2012 highs. EUFN added 1.38 percent for the day though other European products are not faring well amid contagion fears.
Gold weakness continues to drive miners low with the Market Vectors Junior Gold Miners ETF (GDXJ) shedding 3.82 percent on the day. Lower bullion prices are weighing other precious metal producers down, with the Global X Silver Miners ETF (SIL) declining for the day.
The iShares MSCI South Africa Index Fund (EZA) dropped 2.2 percent on the day as precious metal-miners continue to get battered.
The mixed market pulled our Trend Tracking Indexes (TTIs) off their lofty levels to +4.89 percent and +5.79 percent respectively for the Domestic and International indicators.
Disclosure: Holdings in EZA
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