ETFs Move As Portugal Bond Sale Restores Confidence | ETF Trends

Exchange traded funds (ETFs) rose on Wednesday, tracking a rally in European equities, as investors digested the results from a Portuguese government debt auction and awaited the Federal Reserve’s report on current economic conditions.

  • European stocks are way up after he Portuguese government sold $1.6 billion in bonds. The auction was largely seen as a success, even as long-term worries over Portugal and other debt-burdened nations in the eurozone remain. Some of the relief, though, was dampened by the revelation that it had to pay a much higher rate of 5.396% for its three-year bond, compared with the 4.041% yield in October. That rise, however, is largely due to the sharp increase in market rates during November, when Ireland’s debt crisis was at its most acute and sent bond yields in Portugal sharply higher. The iShares MSCI Spain Index (NYSEArca: EWP) is up nearly 5% in early trading.
  • In economic data released before the open, import prices were reported up 1.1% n December, on higher prices for fuel and non-fuel imports, the Labor Department reported Wednesday. Guggenheim Shipping (NYSEArca: SEA) is a great way to play import activity.
  • On the corporate front, shares of ITT Corp. (NYSE: ITT) rallied big time up over 18% today after the conglomerate said its board plans to turn two of its business units into separate, publicly traded companies via tax-free stock distributions to shareholders, in a move by the industrial conglomerate to unlock value. Guggenheim S&P Global Water (NYSEArca: CGW) is up 1.6% so far today on the news; ITT is 4.8% of the ETF.
  • Shares of oil major Chevron Corp. (NYSE: CVX) are up today after the energy company said late Tuesday fourth-quarter earnings are expected to be higher than the profit reported in the preceding quarter. Upstream results are projected to improve between sequential quarters, boosted by higher crude-oil prices, according to the Dow component. The ProShares Ultra Oil & Gas ETF (NYSEArca: DIG) rose more than 1.5% so far today.

Gregory A. Clay contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.