Existing home sales jumped last month. Though the results were beyond expectations, exchange traded funds (ETFs) were left feeling deflated in early trading.
- Existing home sales jumped a more than expected 12.3% in December, though sales are still down 3% from a year ago. The fact that not even bad weather hurt the numbers has delivered a dose of optimism to investors. iShares Dow Jones U.S. Home Construction (NYSEArca: ITB) is up slightly this morning by 0.6%.
- Despite the strong housing figures, it was China that was the fly in the ointment this morning. Concerns that the country’s strong growth would lead to more policy changes to cool such growth dragged the markets lower. Metal ETFs reacted the hardest to concerns; Global X Silver Miners (NYSEArca: SIL) was down the most by 6.2%.
- China’s economy rocketed ahead 10.3% in 2010, so the concerns aren’t without basis. The growth is up from last year’s 9.8%. If you’re bullish on China’s prospects for continued growth in 2011, consider Direxion Daily China Bull 3x Shares (NYSEArca: CZM) to play any big moves.
- Morgan Stanley (NYSE: MS) delivered some nice earnings this morning: quarterly profit rose 60% in the fourth quarter. Despite the earnings, iShares Dow Jones U.S. Broker-Dealers (NYSEArca: IAI) is down slightly; Morgan Stanley is 7.6%.
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.