Direxion’s new funds are:

• Daily BRIC Bull 2x Shares (NYSEArca: BRIL)
• Daily India Bull 2x Shares (NYSEArca: INDL)
• Daily Semiconductor Bull 3x Shares (NYSEArca: SOXL)
• Daily BRIC Bear 2x Shares (NYSEArca: BRIS)
  
• Daily India Bear 2x Shares (NYSEArca: INDZ)
  
• Daily Semiconductor Bear 3x Shares (NYSEArca: SOXS)

Many of the ETFs represent a departure from the norm for the ETF provider: the BRIC and India funds are the first to offer exposure to those economies, as well as the first funds Direxion offers that give twice the leveraged or inverse performance on an index. The semiconductor ETFs are the provider’s first to give triple leverage on that sector. [ETFs for Latin America's Recovery.]

The timing of these launches aligns with the increasing investment popularity of both emerging markets – particularly the BRICs (Brazil, Russia, India and China) – as well as the technology sector, which has notched an impressive recovery off the market’s low one year ago. [Why Technology Could Lead in 2010.]

Leveraged and inverse ETFs aren’t right for everyone; read up on how they work and understand the risks before diving in! [Our Guide to Leveraged and Inverse ETFs.]

For more stories about new ETFs, visit our new ETF category.

Analysts are calling for the semiconductor industry to have a standout year in 2010. Why?

• Manufacturers have kept supplies low, which is seen as a big positive, says EIN News. Low supplies should drive prices higher.
• PC chip shipments rose in the last quarter of 2009, indicating that the market is on its way back after the recession, reports Sharon Gaudin for Computer World. The research firm IDC reported that worldwide PC microprocessor shipments were up 31.3% in the final 2009 quarter compared to the same period in 2008. [Why semis were up in 2009.]
• IDC predicts that shipments this year will rise 15.1% this year compared to last.
• As corporations open up and qualify new client and server platforms and expand their IT budgets, the boost from this and healthy consumer spending should be good news for the semiconductor industry. [Will semis also boost the technology sector?]

For more stories about semiconductors, visit our semiconductor category.

• iShares S&P GSTI Semiconductor (NYSEArca: IGW)

• SPDR S&P Semiconductor (NYSEArca: XSD)

• PowerShares Dynamic Semiconductors (NYSEArca: PSI)

Stocks and exchange traded funds (ETFs) were strongly higher this morning, getting the new year started off on the right foot. Sentiment was boosted by an upbeat report on the manufacturing sector and a deal in the energy sector.

There were a pair of economic reports out this morning:

• Construction spending fell in November by a more-than-expected 0.6%, pulled lower by the housing and commercial sectors.
  
• The Institute for Supply Management reported that their purchasing managers index rose 55.9 in December, from 53.6 in November. The manufacturing sector grew for the fifth consecutive month and December and the 55.9 reading is the highest reading since April 2006, report Kathleen Madigan and Jeff Bater for The Wall Street Journal.

Energy stocks are generally higher this morning after France’s Total SA (NYSE: TOT), Europe’s third-largest oil company, agreed to buy a stake in Chesapeake Energy’s (NYSE: CHK) assets in the biggest U.S. natural gas field for as much as $2.25 billion. Total will pay $800 million for a 25% stake and as much as $1.45 billion over as long as six years by funding 60% of Cheaspeake’s costs in the Barnett shale formation of North Texas, report Tara Patel and Jim Polson for Bloomberg.

The Barnett field produces about half of all shale gas in the United States. Total is up nearly 3% today while Cheaspeake Energy is up about 6.5%. [For more stories about natural gas, see our natural gas category.] The PowerShares Dynamic Energy Exploration & Production ETF (NYSE: PXE) is up nearly 4% this morning.

Oil itself opened the new year with a roaring start. Crude oil rose over $2, climbing above $81 a barrel for the first time in two months. Freezing weather and improving economic prospects around the world bolstered the outlook for demand, reported Mark Shenk for Bloomberg. There were also oil supply concerns coming from both Iran and Russia. [For more stories on oil, see our oil category.] The United States Oil Fund (NYSE: USO) is up nearly 2% this morning.

The Semiconductor Industry Association reported that global semiconductor sales rose 8.5% compared to a year earlier, to $22.6 billion in November. Sales were spurred by stronger sales of HDTVs and improved demand for wireless phones and computers. It was the first time in 2009 that sales exceeded the total of the year-ago numbers, reported MarketWatch. In addition, sales have also increased sequentially for nine straight months. [For more stories on the semiconductor sector, see our semiconductor category.] The SPDR S&P Semiconductor ETF (NYSE: XSD) is up 1.5% this morning.

Tony D’Altorio contributed to this article.

The Dow Jones Industrial Average closed December with a loss of 0.4%. For the year, it was up 18.8%. The Nasdaq gained 4.3% in December and 43.9% for the year. The S&P 500 rose 0.6% for the month, and 23.5% for the year.

December was marked by some stabilization in both the U.S. dollar and gold prices. The dollar had been on a weakening trend for much of the year, but finally saw some revitalization this month. Gold prices soared to record highs in recent weeks, but took a step back in December as the dollar regained vigor. Heading into next year, the primary questions investors are asking will be: will the Federal Reserve hike rates? And if so, when and by how much? The answer could have a wide range of implications, particularly in the fixed-income space.

The top sectors in December were airlines, up 16.8%; natural gas, up 11.5%; semiconductors, up about 8%. The weakest performers this month were gold miners, down 14%; silver, down 11.9%; and Austria, down 10.4%.

To view our full December performance report, click here.

Consumer confidence rose for the second straight month. The Conference Board’s consumer confidence index climbed to 52.9 for December, up from a revised 50.6 in November. Americans have become more confident about the future as the Expectations Index jumped to 75.6 from 70.3 in November, reports Jeffry Bartash for MarketWatch. However, the Present Situation index – a measure of how consumers feel now – fell to 18.8 from 21.2 and remained at a 26-year low.

Home price gains of the past few months flattened out in October. This is according to the S&P/Case Shiller Home Price index, which covers 20 of the largest metropolitan areas in the nation. The index was unchanged in October, after four months of consecutive gains. It’s also down 7.3% from a year earlier, reported Les Christie for CNNMoney. Prices are down from their all-time highs set in 2006 by 29% for the 20-city index. [For more stories on housing, see our homebuilders category.] The SPDR S&P Homebuilders ETF (NYSE: XHB) is down about 0.6% this morning.

Technology stocks dipped into the red this morning, weighed down mostly by weakness in the semiconductor sector, reports MarketWatch’s technology editor Dan Gallagher. The Philadelphia Semiconductor Index (SOX) slipped for a second straight day. [For more stories on the semiconductor sector, see our semiconductors category.] The SPDR S&P Semiconductor ETF (NYSE: XSD) is lower by about 1% this morning.

Tony D’Altorio contributed to this article.

Defensive sectors have led the market over the last few weeks, remarks Gary Gordon for TheStreet, although, it might be because of year-end yield harvesting or efforts to combine cash-flow ETFs with growth ETFs. Among some of the top ETFs leading us out of 2009 include:

• Utilities Select Sector SPDR (NYSEArca: XLU)

• iShares Dow Jones U.S. Telecom (NYSEArca: IYZ)

Additionally, semiconductors and agribusiness are still performing remarkably well.

• SPDR S&P Semiconductor (NYSEArca: XSD)

• Market Vectors Agribusiness ETF (NYSEArca: MOO)

According to Gordon, the U.S. dollar carry trade, or “risk trade,” has a little more juice left to be squeezed out of it for these reasons:

• Government policy. “Risk trade” is the world’s belief that the U.S. interest rates will remain at practically nothing while the dollar remains weak. The U.S. government currently hasn’t shown any initiative in strengthening the dollar, and policies like health care reform, fiscal stimulus and the Fed’s reluctance to change rates have all kept the dollar from appreciating.
• Advisor strategy. Gordon has increased his exposure to utilities and others are doing the same. One ETF-only advisor specifically noted positions in technology, telecoms and utilities because of the prospect of growth with stable cash flows. [An ETF to invest in the "smart-grid" plan.]
• The U.S. dollar. The PowerShares DB U.S. Dollar Index Bullish (NYSEArca: UUP) may have gained recently; however, investors should know that since March, UUP mostly finished every month lower than the month before it. A true trend reversal may need something more substantial. [Gains in the dollar.]

These are some ETFs that help an investor interested in capitalizing on the carry-trade. [Playing the carry-trade with ETFs.]

• PowerShares DB G 10 Currency Harvest (NYSEArca: DBV)

• iPath Optimized Currency Carry ETN (NYSEArca: ICI)

Max Chen contributed to this article.

Stocks and exchange traded funds (ETFs) are being pushed higher this morning by positive news on the inflation and housing frons, while they await the statement to be released at the end of the Federal Reserve’s two-day meeting this afternoon.

Government data released this morning showed that the consumer price index (CPI) in November rose by 0.4%. The so-called core rate of inflation, excluding food and energy, was unchanged for the month. Energy costs drove up the CPI index last month, reported Ylan Q. Mui for The Washington Post. Energy prices rose 4.1% in November, led by gasoline prices. [For more stories on inflation, please see our inflation category.]

According to a government report issued today, home-building rebounded from a six-month low in November, with improvement in new home construction in all parts of the country. Construction of new homes rose by 8.9% and building permits for future construction rose by 6%. Hibah Yousef of CNNMoney reports that the extension of the $8000 homebuyer’s tax credit should have a positive impact on the housing market in the first half of 2010. [For more information on homebuilders, please see our homebuilders category.] Both the iShares Dow Jones U.S. Home Construction Index Fund (NYSE: ITB) and the SPDR Homebuilders ETF (NYSE: XHB) are up solidly today – 1.5% and 1.25% respectively.

The Federal Trade Commission today sued chip maker Intel (NASDAQ: INTC), accusing it of using its dominant position to “stifle competition and strengthen its monopoly.” According to The New York Times, the FTC said in a statement that Intel “put the brakes on superior competitive products that threatened” its microchip market share. The company has faced similar antitrust challenges around the globe over recent years, particularly from Europe. [For more stories on the semiconductor sector, please visit our semiconductors category.]

Intel is down nearly 1.75% this morning. However, other semiconductor stocks are up strongly this morning. The iShares Goldman Sachs Semiconductor Index Fund (NYSE: IGW) is up nearly 2.2%. [For more stories on sector ETFs, please visit our sector ETFs category.]

Crude oil futures added to their gains after a weekly government report showed that U.S. inventories dropped by a larger-than-expected 3.69 million barrels and Iran test-fired another missile. Margot Habiby of Bloomberg also reports U.S. gasoline consumption in November rose by 1.5% from a year earlier. Oil is up $2.13, or 3%, to $72.82 a barrel. The United States Oil Fund (NYSE: USO) is up about 2.6%. [For more stories on oil, please visit our oil category.]

Tony D’Altorio contributed to this article.

Geithner told Congress that the government must hold on to the money in case of new financial shocks. However, the administration does not expect to deploy more than $550 billion of the funds, reported Robert Schmidt and Rebecca Christie for Bloomberg. In addition, the Treasury may expand the Federal Reserve’s Term Asset-Backed Securities Loan Facility (used to jump-start the securitization markets), as well as to continue to use TARP funds to help struggling homeowners and small companies.

Wholesale inventories rose unexpectedly by 0.3% in October, snapping a record consecutive 13 declines. The news gives hope that stores will begin restocking their shelves, reports Martin Crutsinger for the Associated Press. Sales at the wholesale level rose 1.2%, which was another surprise.

Worries over sovereign debt continued as Standard & Poor’s lowered its rating outlook on Spain to negative today. They said that Spain will probably see “significantly lower” GDP growth, reports Nathan Becker of the Dow Jones Newswires. The news about Spain adds to earlier warnings this week from S&P on Greece and Portugal. (For more stories on Spain, please see our Spain category).

Spanish stocks did tumble this morning with the iShares MSCI Spain Index Fund (NYSE: EWP) currently down by 1.75%. (For more stories on global ETFs, please see our global ETFs category).

Texas Instruments (NYSE: TXN) is down nearly 3% today as investors were disappointed with the company’s mid-quarter update. The main problem with Texas Instruments seemed to be a mismatch between demand and inventory, wrote Bob Faulkner at Minyanville. In other words, the customer demand has rebounded and is there, but the company isn’t able to deliver. (For more stories on the semiconductor sector, please visit our semiconductor category).

Semiconductor ETFs have had a good run recently on the back of increased demand for semiconductors. Despite the TXN news, both the SPDR S&P Semiconductor ETF (NYSE: XSD) and the iShares Goldman Sachs Semiconductor Index Fund (NYSE: IGW) are both up slightly so far today. (For more stories on sector ETFs, please visit our sector ETFs category).

Tony D’Altorio contributed to this article.

Investor optimism that the sector is stabilizing and that companies are doing better in the near term has helped push up stock prices, reports Jennifer Cummings for The Wall Street Journal.

FTN Equity Capital Markets analyst JoAnne Feeney believes that the technology sector is the foundation for the ongoing economic recovery. Feeney also noted the improved outlook for the notebook semiconductor market. (What gives tech ETFs their power?)

Early Thursday, Fitch Ratings raised its 2010 outlook for the information-technology sector, expecting future growth in global spending for the industry.

This week’s gains in the sector were kicked off by Altera Corp. (NASDAQ: ALTR), with a raised fourth-quarter sales projection of 15% to 18%, compared to the previous forecast in the 6% to 10% range, according to RTTNews. Most other sector components have also shown strong upward movements so far this week after some key companies raised their future outlook. (Why semiconductor ETFs are rallying).

For more information on the semiconductor industry, visit our semiconductor category.

• iShares S&P GSTI Semiconductor (NYSEArca: IGW): up 62.7% year-to-date



• SPDR S&P Semiconductor (NYSEArca: XSD): up 81.5% year-to-date



• Semiconductor HOLDRs (NYSEArca: SMH): up 53.9% year-to-date

Max Chen contributed to this article.

The U.S. index of Leading Economic Indicators (LEI) rose 0.3% in October, marking the seventh consecutive monthly gain, while the Philly Fed regional survey of business activity rose to 16.7 in November, a bit better than expected, reports Bob Willis for Bloomberg. Claims for jobless benefits remained at a 10-month low.

Semiconductor stocks are leading technology stocks lower after a downgrade on 10 semiconductor stocks, including Intel (NASDAQ: INTC) – which is down nearly 5.5% after the Bank of America/Merrill Lynch downgrade, reported Tenzin Pema for Reuters. Merrill said the supply of chips is growing faster than the demand, putting earnings at risk. So far in today’s trading, the Semiconductor HOLDRS (NYSE: SMH) is down about 4% and the SPDR S&P Semiconductor ETF (NYSE: XSD) is also down about 4%. (For more stories on the semiconductor industry, please see our semiconductor category).

A computer glitch this morning at the Atlanta airport, the busiest in the nation, caused cascading flight delays across the nation, reported Brian Knowlton of The New York Times. Air traffic controllers were forced to program flight plans manually. So far in today’s trading, the iShares Dow Jones Transportation Average Index Fund (NYSE: IYT) is down nore than 2% and  the Claymore/NYSE Arca Airline ETF (NYSE: FAA) is down more than 3%. (For more news on the airline industry, please see our airline category).

On the corporate front, there was more downbeat employment news. AOL, which is being spun off from Time Warner (NYSE: TWX), is asking their employee base of about 6,900 for 2,500 volunteers to be laid off, reports Nat Worden of the Dow Jones Newswires. If the voluntary program is unsuccessful, there will be involuntary layoffs announced by AOL. (For more stories on the media industry, see our media category).

Tony D’Altorio contributed to this article.