M ajor index ETFs surged back bullishly after a choppy start Thursday, but didn’t quite erase Wednesday’s deep losses. Oil nudged higher even as it continues to trade near multiyear lows. West Texas Intermediate crude settled just above $31 a barrel. Stocks gained as the key commodity showed hints of recovery after eight losing sessions.
All 11 Select SPDR ETFs tracking S&P 500 sectors gained Thursday. Energy and biotech climbed most.
All but two of the 30 blue-chip stocks in the Dow Jones Industrial Average advanced.
Intel fell nearly 5% in after-hours trading despite reporting better-than-expected earnings and sales.
There was more corporate earnings news today.
SPDR S&P Bank ( KBE ) popped 1.1% on the stock market today . The ETF holds 62 equal-weighted stocks, but shuts out nonbank financial institutions, such as REITs, insurance companies and pure-play investment banks.
KBE slumped sharply in January along with the broad stock market. It is sitting 18% off its 52-week high of 37.28.
Its holdings include JPMorgan Chase, the nation’s largest bank, which early Thursday reported double-digit bottom-line growth in the fourth quarter. The firm benefited from lower legal expenses and a strong showing from its consumer bank unit.
Earnings were up 10.9% from a year earlier, and revenue rose 0.8% to $23.7 billion, both topping estimates.
More banks are set to report quarterly and full-year earnings in the coming days, marking their first reports after the Fed’s historic decision to raise interest rates by 0.25% in December.
Wells Fargo (WFC) andCitigroup (C) report Friday;Bank of America (BAC) andMorgan Stanley (MS) are slated for Tuesday; andGoldman Sachs (GS) is due Wednesday.
Besides JPMorgan Chase, KBE also holds Wells Fargo, Citigroup and Bank of America.
Financial Select Sector SPDR (XLF) advanced 0.9% in above-average volume.
Despite gains Thursday, the broad U.S. stock market is an unsettled state.
Anxiety about the relentless commodity slump and volatility out of China precipitated a sharp sell-off in January.
The Dow and Nasdaq Composite indexes are 10% and 11% off their 52-week highs, respectively. In stock parlance, that marks correction territory.
The S&P 500 is 9% off its old high.
Small-cap stocks have fared worse: The Russell 2000 is 21% off its June high, indicating a bear market.
Gold And Dollar
Haven assets got a setback as investors piled into stocks Thursday.
Gold ETFs sliced below their 50-day lines as the dollar gained. They are 17% off their one-year highs, set last January.
ETFs tracking the value of the euro, yen and British pound vs. the greenback all posted losses.
10 Bellwether ETFs:
Here’s a look at how the major exchange traded funds tracking various asset classes performed today.
Following daily ETF market action can be key to successful investing :
SPDR S&P 500 (SPY), +1.6%, RS 64
PowerShares QQQ (QQQ), +2.1%, RS 71
SPDR Dow Jones Industrial Average (DIA), +1.4%, RS 62
IShares Core S&P Mid-Cap (IJH), +1.1%, RS 49
IShares Russell 2000 (IWM), +1.4%, RS 45
IShares MSCI EAFE (EFA), +1.3%, RS 52
Vanguard FTSE Emerging Markets (VWO), +1.3%, RS 31
SPDR Gold Shares (GLD), -1.6%, RS 62
IShares Core U.S. Aggregate Bond (AGG), 0%, RS 78
PowerShares DB U.S.$ Bullish (UUP), +0.3%, RS 86
Follow Aparna Narayanan on Twitter @IBD_ANarayanan .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.