Chrysler Puts Brakes on ETF Rally

April turned out to be anything but the cruelest month for ETFs, as the broader market posted its biggest monthly gain since 2000. Stronger-than-expected earnings in some consumer and tech names helped a woozy Wall Street regain its footing after Chrysler filed for Chapter 11 bankruptcy Thursday, while Starbucks (SBUX) and Visa (V) both beat analysts' expectations. Investors also had a positive response to Bank of America (BAC) after the ouster of Ken Lewis as chairman. Still, the Dow Jones Industrial Average fell 17 points to close at 8168. For a complete rundown on Thursday’s trading session, see our market story.

Retail shares edged higher Thursday, helped by declining U.S. jobless data that bolstered the case for a nascent economic recovery. That boosted the SPDR S&P Retail ETF (XRT), which added 3.4% to close at $27.70. The better jobless data and word from Caterpillar (CAT) that it's seeing an uptick in business from China also fueled the materials sector. The iShares Dow Jones U.S. Basic Materials ETF (IYM) gained 2.6% to finish at $41.42.

The declining U.S. jobless claims that helped bolster retailers also hurt the price of gold, a traditional safe-haven play in times of economic distress. Gold futures closed down $9.30 at $891.20 Thursday, punishing ETFs that track the precious metal. SPDR Gold Trust (GLD) lost 1.2% to finish at $87.27, while Market Vectors Gold Miners (GDX) dropped 2.9% to close at $32.91.

Launching Pad
State Street Global Advisors (STT) on Thursday launched the SPDR KBW Mortgage Finance fund (KME). The exchange-traded fund seeks to replicate the effects of KBW Mortgage Finance Index, a modified market-cap weighted index of the stocks listed on U.S. stock markets, comprised of pure mortgage players, mortgage processors, title insurers, home builders, and banks and thrifts where mortgage loans make up the bulk of loan books. The index had 24 stocks as of March 31. The fund has an expense ratio of 0.35%.

Earnings and Conference Calls
Allergan, Aon, Chevron, Clorox, Consolidated Edison, Dean Foods, Fortune Brands, James River Coal, MasterCard, Provident Financial Services, Simon Property Group

Economic Data
9:55 a.m. End-April Reuters/Univ. of Michigan Sentiment Index
10:00 a.m. April ISM Manufacturing Index
10:00 a.m. March Factory Orders

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