U.S. equity markets broadly surged in Tuesday's trading session
as tech stocks rallied throughout the day. The Dow and S&P 500
added about 1.5% each while the Nasdaq jumped 1.8% thanks to a
nearly 5% move higher in Apple and gains of nearly 2.5% in
Oracle.
Meanwhile in currency trading, the dollar was pretty much flat
against a host of major developed market currencies although gains
were especially strong against the Japanese yen in Tuesday trading.
This flat trading in the dollar transferred over into a slight loss
in bond markets as yields once again hit the 2.0% mark for the key
10 year Treasury bond note (read
Three Great ETFs For Your IRA
).
Commodity markets saw uncertain trading as products diverged
wildly, even among their main groups. WTI crude added about 1.2%
while natural gas slumped 3.1% in the energy market, while cocoa
added 2.5% and wheat finished flat in the broad agricultural
market.
Beyond these products, investors did some strength in the
industrial metals segment-copper rose by about 1.7 cents-while
precious metals trading was generally positive to close out the
day.
Meanwhile, in ETF trading, most of the big name products saw
light trading days despite the surge in performance during
Tuesday's session. In fact,
SPY
,
QQQ
,
GLD
,
USO
, and
XLF
all saw volume come in below their usual daily average.
However, this was not the case for all ETFs, as a few managed to
see outsized trading volumes despite the low interest in many of
the industry's most famous products. Among these big trading volume
winners were a number of sector ETFs as well as a few country
specific funds.
In the sector space, trading was especially robust in the case
of the
iShares MSCI Dow Jones US Broker Dealers Index Fund (
IAI
)
. This ETF usually sees volume around 45,500 shares in a normal
session, but saw 830,000 shares change hands during today's trading
(see
Three Financial ETFs Outperforming XLF
).
This surge in interest was largely due to some key earnings
reports in some of the fund's top holdings. The top allocation in
the ETF-
Goldman Sachs (
GS
)
-reported earnings today while several other top companies report
this week as well. Thanks to a decent report from GS, investors saw
the increased volume result in a modest uptick in price as the ETF
added 0.7% on the day, a decent performance but less than the broad
market did in the session.
Another ETF that saw huge volumes was the
Rydex S&P Equal Weight Technology ETF (
RYT
)
. This relatively popular fund experienced a spike in volume of
346,000 shares today, well above the 19,700 average that is usually
seen in this product (read
Three Technology ETFs Outperforming XLK
).
This tech ETF was a huge beneficiary of the rebound in the
sector that took place in Tuesday trading, although it was less so
than what investors saw in market cap weighted products. That is
because RYT devotes just 1.5% to Apple-one of the biggest winners
today-while other tech funds have nearly a double digit allocation
to the giant. Nonetheless, the tech rebound was pretty broad and
helped carry most companies that are engaged in the sector higher
during Tuesday's trading session, although few saw the spike in
volume that investors saw in RYT.
(See more on ETFs at the
Zacks
ETF Center
)
GOLDMAN SACHS (
GS
): Free Stock Analysis Report
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