ETFs and stocks bounce back on better economic news in the United States and Europe
ETFs and stocks rallied today as economic news and earnings came in better than expected.
Leading sectors were Energy (NYSE:IYE) and Cisco (NASDAQ:CSCO) helped the important technology sector (NASDAQ:QQQ) higher as the bell whether tech company jumped 5.5% on better than expected earnings and sales.
Weekly unemployment claims dropped to the lowest levels in seven months and the four week moving average showed improvement.
Overseas, the mood was improved as Italy sold 10 year bonds below the all important 7% level and a new Prime Minister for the country appears imminent while apparently the European Central Bank continued its bond buying program.
On a technical basis, important support held at the 1225 level on the S&P 500 (NYSEARCA:SPY).
Recession fears are still widespread, but iShares’ Russ Koesterich doesn’t agree in his very worthwhile article “Tipping Into Recession? Not Yet.”
The high level view is that the economy is slowly improving, technical indicators held at important support levels and the market wants to go higher. Europe, particularly Italy, is the wild card and so the situation is likely to remain volatile, although it’s likely that the “end game” for Italy is not starting today.
Disclosure: No positions in ETFs or stocks discussed in this article.
John Nyaradi is the author of The ETF Investing Premium Newsletter.