ETFs Enjoy First Rally of the Week

Market Wrap-Up

There was plenty for traders to digest Thursday as the stock market endured a topsy-turvy session brought about by news from Capitol Hill and from corporate boardrooms.

President Bush descended on Wall Street to give a speech ahead of this weekend's G-20 summit on the current condition of the markets and the economy. As he was in lower Manhattan, Congress was hearing testimony from five of the hedge fund world's most prominent managers on their roles in the recent financial crisis. Politicians also seemed to be debating whether or not the nation's automakers deserved a bailout plan. The Department of Labor announced 516,000 people filed initial jobless claims, a big jump from the previous week's 484,000 figure. That data stoked new concerns about escalating unemployment.

Meanwhile, news out of the corporate world wasn't all that great. Wal-Mart (WMT) posted decent third-quarter numbers but warned its fourth quarter could be impacted by currency exchange rates as the dollar strengthens. Intel (INTC) warned its fourth quarter wouldn't be good, either. Those stocks finished the day higher. But the Intel news helped push some tech-focused ETFs lower at the prospects for the industry dimmed.

A weekly inventory report from the Department of Energy showed crude oil supplies were almost unchanged from previous levels. That caused a rally in the per-barrel price, which closed at $59, up over $3.

Overnight markets in Japan and Hong Kong traded lower. That spilled over into the U.S. market during early morning trading. But the tide quickly changed as traders digested the idea the G-20 meeting might produce a coordinated global effort to kick start economic growth. Stocks rallied as the closing bell neared, especially energy names. The Dow Jones Industrial Average ended the session up 552 points to 8,835.

Winners

For most of the last week traders have been bailing on oil due to the possibility slower global economic growth would lead to a decrease in demand. But Thursday's inventory report showed oil supplies holding steady. That made investors comfortable enough to jump back into energy-related ETFs. The United States Oil ETF (USO) gained 6.4%.

Losers

Intel's tepid sales forecast dragged down the entire tech sector. The Rydex S&P Equal Weight Technology ETF (RYT) dropped 1%.

Thursday's Industry Headlines

Data Point
State Street released its monthly snap shot of the ETF industry. As of Oct. 31, there was 701 ETFs holding $482.9 billion. Assets fell 16.7% during the month, a fact that can be attributed to the overall downturn in the stock market.

Launching Pad
Rydex announced it launched CurrencyShares Russian Ruble Trust. The fund tracks the daily movements of ruble. This ETF joins a lineup that includes others based on the euro, the British pound, the Japanese yen and the Swiss franc.

Friday's Notebook

Earnings & Conference Calls
Abercrombie & Fitch, Agilent, Hewitt Associates, JCPenney

Economic Data
8:30a.m. Oct. Import Prices
8:30a.m. Oct. Retail Sales
8:30a.m. Oct. Retail Sales, Ex-Autos
10:00a.m. Sept. Business Inventories
10:00a.m. Mid-Nov Reuters/U Michigan Sentiment Index

Quick Take

A look at how the industry's most popular ETFs did on Thursday: