The Russia email scare spooked stocks (^DJI, ^GSPC, ^IXIC), but just like that bulls were back in charge. But what happens when the next report comes out? Plus, FAANG stocks are feeling the heat recently—and there could be more pain to come, thanks to Janet Yellen. And, Go east, young man … That’s what ETF maven Tom Lydon is telling investors. We get the lowdown on why he’s high on China. Catch The Final Round at 4 p.m. with Jen Rogers and Yahoo Finance markets correspondent Myles Udland.
Winners and losers
Stocks in the red today include Barracuda Networks as the cybersecurity firm’s current quarter profit forecast missed estimates; Michael Kors as MKM Partners initiated shares with a sell rating citing bad sales metrics and too much inventory; and Snap, with shares dropping below its IPO price as lead underwriter Morgan Stanley downgrades the social media company to equal-weight, citing competition like Instagram.
Stocks in the green today include Arena Pharmaceuticals as its lung disease treatment met its primary endpoint during phase 2 trials; Rent-A-Center as the rent-to-own company rejected an $800 million takeover offer from Vintage Capital; and Western Digital, with shares of the memory and hard disk firm climbing after the company said it matched all bids for Toshiba’s chip unit, currently valued at $18 billion. Western Digital is seeking to halt an auction for Toshiba’s chip business in court.
Tom Lydon on international investing and active vs. passive
It was a close call for the first time in over a year as mutual fund inflows outpaced ETF inflows in May, according to Morningstar. What do the flows tell us about the market and the rest of the year? Tom Lydon, editor of ETF Trends.com, joins us now.