Stocks and exchange-traded funds (ETFs) are on the rise this
morning after an upbeat durable goods report has inspired investors
in early trading. Now the question is, will it sustain through the
The April Durable Goods Report was a positive one. New factory
orders for durable goods in April surged 2.9%, which exceeded
expectations of 1.5%, following a revised no change from the month
before. The jump in the headline number was in large part because
of the transportation component. Year-on-year, overall new orders
for durable goods were up a healthy 18.9% in April, compared to
17.3% in March. [
Railroads are Moving the Transportation ETF.
iShares Dow Jones Transportation Average (NYSEArca:
Following Tuesday's late rally, the upbeat durable goods report
inspired investors to keep buying as stocks continue to rise early
Wednesday. A change in focus helped the market rally late Tuesday
and into trading today as investors turn their attention away from
European debt woes that have dominated financial news of late,
choosing to instead concentrate on domestic news and the durable
goods report, which provided further evidence that the U. S.
economy is improving.
Gold futures have bounced back above $1,200 an ounce, likely in
response to continued European economic struggles and increased
tension on the Korean peninsula. However, analysts describe the
buying trend as a continuation of recent worries as investors seek
safety in the metal, rather than any new evidence creating or
contributing to the current struggles in the global economic
Gold ETFs Keep Their Calm in Crisis.
SPDR Gold Shares (NYSEArca:
Europe's fiscal crisis has many economists wondering aloud if
the U. S. recovery will encounter a slower road to recovery. Months
after most analysts predicted the recession had passed, lingering
worries and wounded European allies could possibly hamper demand
for U. S. exports, posing an additional threat to domestic
recovery. The Organization for Economic Cooperation and
Development, at least, has boosted its growth forecasts for the
global economy this year. Growth will come from emerging economies
such as China, however, and not from developed markets. Growth is
forecast to be 2.7% this year, up from the 1.9% predicted last
Winners and Losers in the Crisis.
Aaron Hurst contributed to this article.