A mostly positive durable goods orders report sent stocks and exchange traded funds (ETFs) surging, led by base metal ETFs and Europe ETFs.
The top ETFs this morning, according to the ETF Dashboard, included iShares MSCI Spain (NYSEArca: EWP) and First Trust ISE Global Copper (NASDAQ: CU), both of which are up more than 3% in early trading.
Excluding orders for transportation, durable goods rose 2% in August, besting economists’ expectations of a 1% decline. Overall, durable goods orders fell 1%, led by a 10.3% drop in transportation. Market Vectors Steel (NYSEArca: SLX) surged on the news, gaining 2.3% so far today. [Steel ETFs Trump Forecasts.]
New home sales, on the other hand, came in below expectations. Economists estimated a 6.9% increase, but sales actually fell 7.7%. Year over year, sales were down 29% and inventory levels are at 8.6 months at the current rate. SPDR S&P Homebuilders (NYSEArca: XHB) is up 2.2% so far this morning, lifted by a report from KB Home (NYSE: KBH) that it had narrowed its fiscal third-quarter loss. [Homebuilder ETFs: More Trouble Ahead?]
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. 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.