The markets were mainly lifted by a pledge from the Group of 20 to keep their stimulus measures in place. Traders saw the announcement as a signal the interest rates would stay low for the time being, report Ieva M. Augstums and Tim Paradis for the Associated Press.

Tropical Storm Ida is making its way through the Gulf of Mexico, and oil companies have begun evacuating their workers. The storm was downgraded from a Category 1 earlier today, says Chris Kahn for the Associated Press. The path would put the storm east of New Orleans and away from most oil and gas facilities in the Gulf, but companies want to be prepared if things change. Oil fields in the Gulf make up about 25% of U.S. crude production and 15% of natural gas production.

Oil prices are hovering around $80 a barrel this morning on concerns about Ida as well as a weaker dollar. United States Oil (NYSEArca: USO) is up nearly 3% this morning.

The weakness of the dollar sent gold prices to a new record trading high of $1,109.90. It continues last week’s rally, when gold gained 5% on speculation that central banks would begin buying more of it as an alternative to the dollar. SPDR Gold Shares (NYSEArca: GLD) is up about 1% this morning.

Cadbury (NYSE: CBY) has rejected the latest bid from Kraft Foods (NYSE: KFT). The hostile bid of $16.4 billion was turned down after Kraft refused to improve its last offer. PowerShares Dynamic Food & Beverage (NYSEArca: PBJ) is up about 1% this morning.

Many investors may be feeling shy about stepping out into markets at this time of year, given the ghoulish conditions and ghostly numbers that are popping up. But before you drown out that anxiety with a ton of candy bar miniatures, take a minute to rethink your portfolio.

The markets are not all doom and gloom, and there are many corners of the market that can keep you from getting buried. (How to play emerging markets).

Of course, you should have a protective strategy and watch market trends, besides having a strict discipline of watching the 200-day moving average. (More on trend following).

If you’re looking for a fund to play the rush for candy and all things sugar, check out PowerShares Dynamic Food and Beverage (NYSEArca: PBJ) which is up 5.7% year-to-date. Holdings range from Hershey’s Company (NYSE: HSY) to McDonald’s (NYSE: MCD), so there is a wide variety of fun food to bet on. (See why fast food is on a roll).

For more stories about food and beverages, visit our food and beverage category.

Happy Halloween!

The economy grew 3.5% in the third quarter, its best performance in two years. Spending on homes and new cars, as part of the “cash for clunkers” program, contributed to the growth, reports Jeannine Aversa for the Associated Press. What it means going forward is in doubt, because if unemployment continues to rise it will hamper consumer spending. (A holiday shopping ETF?)

This week, the job markets got a reprieve: claims fell more than forecast to their lowest point in seven months, reports Courtney Schlisserman for Bloomberg. It was also the biggest drop since July. Companies appear to be cutting fewer jobs as signs of an economic recovery emerge.

Treasury Secretary Timothy Geithner spoke today about financial reform and said that new legislation will not lead to bailouts. The Obama administration wants laws that would give federal regulators to power to identify and monitor major banks so they can be wound down before collapsing, reports Anne Flaherty for the Associated Press. The law is intended to prevent putting the government in a position where it needs to decide between a big rescue or allowing the bank to fail. (How to harness the financial sector recovery).

A slew of earnings came forth this morning:

• Procter & Gamble (NYSE: PG) reported their first-quarter earnings, which were better than expected.  Profits were off 1%, but Procter & Gamble has pledged to be aggressive in winning back market share.
• Exxon Mobil (NYSE: XOM) said its profits dropped 68% in the third quarter. While the results were the best of the year so far, but Exxon has not reported such low quarterly profits in four years. Energy Select Sector SPDR (NYSEArca: XLE) is up 1.5% this morning; XOM is 21.4%.



• Motorola (NYSE: MOT) had an unexpected third-quarter profit, thanks to narrowing losses in its cell phone division. It was their second consecutive quarterly profit this year. (Four reasons to watch global telecom).
• Kellogg (NYSE: K) benefited from brand loyalty, which delivered a 6% boost to its profits last quarter. More consumers are eating at home, and they view Kellogg’s cereals as a staple. PowerShares Dynamic Food & Beverage (NYSEArca: PBJ) is up about 1% this morning; Kellogg is 5.2%.

Although several sectors have notched strong third-quarter performance, the ones listed below are among the standouts. For more stories on sector ETFs, visit our sector ETF category.:

1. Technology. Apple (Nasdaq: AAPL) is the latest big tech name to post strong earnings. The maker of the popular iPhone posted a 47% gain in profit, taking investors and analysts by surprise. Shares were up 5.4% as of Tuesday, reports Jessica Mintz for the Associated Press.

Other technology companies posted strong earnings, as well. (Read about them here).

• Technology Select Sector SPDR (NYSEArca: XLK): up 40.3% year-to-date; Apple 8.1%

• FirstTrust NASDAQ -100 Tech Index (NYSEArca: QTEC): up 67.6% year-to-date; Apple 2.7%

2. Pharmaceuticals. The sector came out a winner in the health care bill that went through the finance committee last week. Pfizer (NYSE: PFE) reported a 26% higher profit, but lower sales. The world’s largest drug maker posted net income of $2.88 billion, or 43 cents a share, even as many patents have been expiring, reports Val Kennedy for MarketWatch.

• iShares Dow Jones U.S. Healthcare (NYSEArca: IYH): up 14.2% year-to-date; Pfizer is 10.6%

• Vanguard Health Care (NYSEArca: VHT): up 15.3% year-to-date; Pfizer is  7.5%

3. Fast Food. McDonald’s (NYSE: MCD) and Yum Brands (NYSE: YUM) have weathered the recession nicely, as price-aware consumers stop going out to sit-down restaurants. Yum Brands has continues to thrive; its third-quarter earnings rose 18% thanks to lower costs that helped the company earn a profit in both the United States and China. McDonald’s announces earnings on Thursday.

• PowerShares Dynamic Food And Beverage (NYSEArca: PBJ): up 10.8% year-to-date; Yum 4.7%; McDonald’s 4.5%

Yum Brands (NYSE: YUM), reported earnings of $0.70 per share, beating analysts’ expectations of $.58 per share.   The outperformance was primarily driven by strong operating earnings growth from China and the United States. Domestically, consumers are seeking out cheaper dining options when they’re not eating at home. Overseas, Yum and other companies have ramped up their expansion.

Lower food costs and cost-cutting measures in the company also contributed to positive earnings results, states Ockham Research.

The parent company of Pizza Hut announced that it will increase its quarterly dividend by 11%, marking the fifth annual increase for the company.  Yum is expecting to continue to grow operation by opening 1,400 new restaurants overseas and should be beneficial as the dollar continues to remain weak.

Yum has a lead in China on its U.S. competition . Burger King (NYSE: BKC) opened its first store a few years ago, while others such as Wendy’s (NYSE: WEN) and Chipotle (NYSE: CMG) only do business in North America, reports Ryan C. Fuhrmann for Investopedia.

A diversified way to gain exposure to fast food is through the PowerShares Dynamic Food & Beverage (NYSEArca: PBJ), which is up 7.3% year-to-date; YUM is 4.7%.

For more stories on fast food, visit our food and beverage category.

Kevin Grewal contributed to this article.

The U.S. service sector grew for the first time in 13 months in September, and although jobs are still scarce, it’s still being called a positive sign for the recovery, reports Tali Arbel for the Associated Press. The index hit 50.9, and any reading above 50 indicates growth. The index tracks hospitals, retailers, financial services companies and truckers.

• Consumer Discretionary Select Sector SPDR (NYSEArca: XLY)

• PowerShares Dynamic Food & Beverage (NYSEArca: PBJ)

Bank of America (NYSE: BAC) said that it plans to choose an emergency CEO if Ken Lewis steps down before year’s end. Lewis plans to retire on Dec. 31. The Financial Select Sector SPDR (NYSEArca: XLF) is up nearly 2.5% this morning.

The Treasury Department has said that its program to assist banks in unloading their bad mortgages may be up and running by the end of this month, reports Edmund L. Andrews for The New York Times. Five out of nine money-management firms selected to buy the unwanted securities have raised the minimum amount needed – $500 million. Another four should complete financing by the end of the month.

Earnings season kicks off this week, with reports expected from Yum! Brands (NYSE: YUM), Family Dollar (NYSE: FDO), Costco (NasdaqGS: COST) and Alcoa Aluminum (NYSE: AA).

For more stories on the financial sector, visit our financial category.

General Mills (NYSE: GIS) and ConAgra (NYSE: CAG) both reported higher-than-expected quarterly profits, thanks to falling commodity prices. Del Monte Foods (NYSE: DLM) reported a fiscal first-quarter profit and raised its target for the year, Kellogg (NYSE: K) announced that its full-year earnings should be at the high end of its goal.

It’s taking less money now for food companies to buy what is needed to make cereals, frozen vegetables and other products. Jeremy Hobson for MarketPlace reports that this is why food companies appear to be doing better than anticipated, especially in this market climate.

In addition to falling commodity prices, there are two other factors at play in the higher earnings of these companies:

• More consumers are cooking at home and are seeking out the products of traditional name brands to put food on the table.
• When commodity prices were high, this was passed onto the consumer, and now that commodity markets are no longer inflated, the price has remained the same, hence the profit margin, which equals healthier earnings.

• PowerShares Dynamic Food & Beverage (NYSEArca: PBJ): up 6.9% year-to-date; General Mills, 5.5%; Kraft, 5.1%

• Consumer Staples Select Sector SPDR (NYSEArca: XLP): up 7.4% year-to-date; General Mills, 2.2%; ConAgra Foods, 1.1%; Kraft, 4%

For more stories about food and beverage, visit our food and beverage category.

The Fed is expected to make its announcement this afternoon. The U.S. Central Bank will likely keep rates at zero, but investors are waiting for indications of when interest rates may rise as well as clues about the strength of the economic recovery. The announcement will be made at 2:15 ET.

In the earnings arena, foodmaker General Mills (NYSE: GIS) reported a 51% increase in profits on lower ingredient costs and strong demand for its products. The maker of Cheerios reported quarterly earnings of $1.28/share, beating Wall Street’s expectations of $1.03/share.  The company has witnessed increases in sales as more people are choosing to dine at home.  The news sent the PowerShares Dynamic Food & Beverage (NYSEArca: PBJ) up 0.1% in morning trading.

In the real estate sector, mortgage applications jumped to their highest levels since May when interest rates were below 5%, states Julie Haviv for Reuters.  The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending Sept. 18 increased 12.8% to 668.5.  This increase was fueled by consumer desire to refinance loans as well as obtain new mortgages to purchase homes.  Despite the news, the iShares Dow Jones Real Estate (NYSEArca: IYR) was down 1.4% in morning trading.

Globally speaking, the G-20 summit is taking place in Pittsburgh were President Barack Obama is trying to convince European leaders to impose more stringent rules and regulations on bank pay limits.  Some believe this will be tough, as European countries are becoming increasingly impatient at the pace of action on climate change and financial regulation in the U.S. Congress and by the Obama administration.

Overall, the Dow Jones Industrial Average dropped 0.2%, the S&P 500 was down 0.3% and the Nasdaq gave up 0.1% in morning trading.

For more stories on real estate, visit our real estate category.

Kevin Grewal contributed to this article.

Kraft Foods (NYSE: KFT) kicked things off by bidding for Cadbury (NYSE: CBY), which declined the offer. Now other names could be lining up, including Hershey (NYSE: HSY), Pepsi (NYSE: PEP), Nestle and Mars. Don Dion for The Street reports that several types of ETFs, from food to consumer staples, can provide exposure and give investors the opportunity to capitalize on this battle.

• PowerShares Dynamic Foods (NYSEArca: PBJ): up 7.3% year-to-date; holds large, top consumer goods companies; Pepsi is 4.2%

• Consumer Staples SPDR (NYSEArca: XLP): up 7.3% year-to-date; highly concentrated holdings and is the largest ETF in the group; with 40 holdings, 66% of assets are given to top 10 companies; Kraft is 4%; Pepsi is 4.3%

• Vanguard Consumer (NYSEArca: VDC): up 9.7% year-to-date; holds 110 companies and tracks closely to XLP; Pepsi is 6.7%; Kraft is 3.5%

• iShares Consumer Goods (NYSEArca: IYK): up 14.3% year-to-date; IYK’s holdings include large, mature firms that offer stable returns, but does not offer any retail exposure that the others do; has a higher expense ratio of 0.48%; Pepsi is 8.8%; Kraft is 3.5%

The bidding over Cadbury could drag on for months, and the attention that it could draw to the sector make these funds interesting buys in the meantime.

For more stories about consumer staples, visit our consumer staples category.

In the absence of big news, all eyes are on the upcoming Federal Reserve meeting, which takes place tomorrow and Wednesday. The consensus is that they’ll leave the main target lending rate near zero, reports The Washington Post. The biggest question is whether the Fed will let a program to buy $300 billion in U.S. Treasury bonds expire. The program was created to lower long-term interest rates and generally make lending conditions more favorable.

McDonald’s (MCD) announced that its same-store sales rose 4.3% in July. The United States’ largest hamburger chain is apparently benefiting from price-conscious diners, as well as a huge promotion of its new line of coffee drinks, says Betsy Vereckey for the Associated Press. McDonald’s fared even better overseas: in Europe, their same-store sales jumped 7.2%.

• PowerShares Dynamic Food & Beverage (PBJ): up 5.6% year-to-date; McDonald’s is 4.9%

Options traders are keeping an eye on the rally seen in the S&P 500 and increasing their bets that it won’t last in September. That month historically has been the worst for U.S. equities, say Jeff Kearns and Michael Tsang for Bloomberg. Traders are now betting that the VIX, a measure of market fear, will gain 13% in the next five weeks.

• iPath S&P 500 VIX Short-Term Futures ETN (VXX): down 20% in the last month

General Motors will begin selling cars and trucks on eBay tomorrow in an effort to reach new customers and restore its lost market share. To start, the deal will involve 225 dealerships in California, but GM hopes it goes national by September, reports Nick Bunkley for The New York Times.