Economic reports from home sales and Texas Fed bolster ETF and stock investors.
The Texas Manufacturing Outlook Survey rose from 5.8 to 11.2 for February.
From the Report:
“Texas factory activity continued to increase in February, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, rose from 5.8 to 11.2, suggesting a pickup in the pace of growth.
Other measures of current manufacturing conditions also indicated expansion in February. The new orders index was positive for a second month in a row but fell from 9.5 to 5.8. Similarly, the shipment index moved down from 6.1 to 4.2.Capacity utilization increased further in February; the index edged up from 8.5 to 10.
Perceptions of broader economic conditions were more positive in February. The general business activity index index rose to 17.8, its highest reading since November 2010.”
Home Sales Look Strong
Pending home sales for January climbed 2% to reach their best levels in nearly two years, clocking in at 97 compared to 95.1 in December.
From the report:
“Pending home sales are on an upward trend, which has been uneven but meaningful since reaching a cyclical low last April, and are well above a year ago, according to the National Association of Realtors.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 2.0 percent to 97.0 in January from a downwardly revised 95.1 in December and is 8.0 percent higher than January 2011 when it was 89.8. The data reflects contracts but not closings.
The January index is the highest since April 2010 when it reached 111.3 as buyers were rushing to take advantage of the home buyer tax credit.”
ETF Summary:
Real estate ETFs and Manufacturing ETFs responded to today's economic reports with mixed results.
iShares Dow Jones U.S. Real Estate Index Fund IYR -0.2% at noon EST. This ETF tracks the performance of the Dow Jones U.S. Real Estate Index and includes real estate holding companies and real estate investment trusts.
Vanguard REIT ETF VNQ fluctuated around flat line Monday in response to today's news. The ETF tracks an index of REITs that include commercial property, hotels and office buildings. The ETF began an uptrend at the beginning of the year that reversed in early February and now momentum indicators point lower.
iShares Dow Jones U.S. Home Construction Index ITB soared in mid-day trade, up 1.8% at mid-day. The ETF tracks the Dow Jones U.S. Select Home Construction Index and companies that build residential homes.
Manufacturing ETF Summary:
SPDR Dow Jones Industrial Average ETF Trust DIA climbed 0.15% in mid-day with the Dow Jones Industrial Average trying to hold the psychologically important 13,000 level. The ETF is designed to track the performance of the Dow Jones Industrial Average.
Materials Select Sector SPDR ETF: XLB gained 0.16% by mid-day, responding to reports of economic strength in the manufacturing and building sectors. The fund tracks the Materials Select Sector Index that includes companies in the chemicals, metals, containers and construction materials business and would benefit from stronger manufacturing and home building activity.
Bottom line: Economic reports continue showing strength in the U.S. domestic economy while technical indicators point to overbought, overextended conditions.
Go here for a Special Offer from Wall Street Sector Selector
Disclaimer: Wall Street Sector Selector actively trades a wide range of exchange traded funds (ETFs) and positions can change at any time.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
