ETFs Love Presidential Debates

Major U.S. stock indexes bounced higher today on better than expected jobs and factory order data.

The S&P 500 advanced .72% to 1461, back into resistance levels and at levels comparable to December, 2007, near the onset of the financial crisis. The advance was largely triggered on what was seen as good news showing that weekly unemployment claims came in at 367,000, up from last week but better than the 370,000 estimate, and factory orders, while still declining, beat estimates, as well.

Investing Insights to Explore Now: ETF Trading Signals>>

All eyes are on today’s monthly Non Farm Payrolls report for more confirmation that the US economy is, indeed, on sounder footing.  The Labor Department reported employers added 114,000 jobs in September and the US jobless rate fell to 7.8 pct., a 44-month low.

Thursday, the Dow Jones Industrial Average (DJI) rose 80 points, the S&P 500 (NYSEARCA:SPY) added 0.7%, the Nasdaq 100 (NASDAQ:QQQ) climbed 0.35% and the Russell 2000 (NYSEARCA:IWM) jumped 0.7%.

Gold (NYSEARCA:GLD) continued its recent bull market to reach $1791.80, a gain of 0.6% and oil (NYSEARCA:USO) jumped to $91.50/bbl, a gain of 3.9%.

September back to school sales looked solid and helped push the S&P 500 to its fourth daily gain in a row.

Bottom Line: After a short pause to consolidate, U.S. stock indexes and ETFs are poised to challenge resistance levels, and if successful, resume the recent bull market rally that now has all time highs in sight. We remain in “green flag” mode, expecting higher prices ahead.

Investing Insights to Explore Now: ETF Trading Signals>>

John Nyaradi is the author of The ETF Investing Premium Newsletter.