The market was up today on the back on news out of Europe – there is a shocker!! The ECB had a surprise rate cut and the Greek referendum vote has been tabled, both good news for equities. The S&P 500 was up 1.9% and is back to breakeven for the year. It is amazing that after the wild ride that investors have had to endure the last 10 months that the market is essentially flat.
A continued barrage of solid earnings have provided a solid backdrop for the most recent rally. A big winner today was Estee Lauder Companies ($EL), which blew expectations out of the water and rallied 18% to a new all-time high. Communication equipment company Qualcomm ($QCOM) also beat expectations and the stock finished up 7.5% at a 3-month high.
In the world of commodities, oil was able to trade at the best level in 3 months – this is one of the better future indicators of global growth. If the world was in for a recession the price of oil would not be rallying. The US Oil ETF ($USO) was up 1.8%.
The top performing Sector ETFs of the day were a surprise. When the risk trade is back on, as it was today, typically the risky sectors will rise. Not the case today. The iShares Dow Jones Aerospace & Defense ETF ($ITA) was up 3.2% and the iShares Dow Jones US Pharmaceutical ETF ($IHE) was up 2.9%.
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