U.S. Markets closed

These Tech ETFs Dispel Rate Hike Fears, Hit 52-Week High

Sanghamitra Saha
PEBO vs. FIBK: Which Stock Is the Better Value Option?

The latest Fed minutes reflected the increased confidence of policy makers in U.S. inflation and the need to raise rates faster in 2018, especially amid the materialization of tax cuts. This has driven the yield on 10-year U.S. Treasury bonds to 2.94%, which is a four-year high, and was up from 2.46% recorded at the start of the year (read: 7 Ways to Play Rising Yields With Inverse Treasury ETFs). 

Yield on the 30-year Treasury bond shot up to its highest since July 2015, while yield on the two-year Treasury note scaled the highest level since September 2008. Many analysts, including Macquarie Group, foresee “renewed hawkishness from the FOMC in the coming months”, courtesy of solid wage and inflation data.

Needless to say, the minutes came across as equity-bashing with the three big ETFs including SPDR S&P 500 ETF SPY, SPDR Dow Jones Industrial Average ETF DIA and PowerShares QQQ ETF QQQ ending up in the red.  Fears of faster ceases in cheap money inflows kept the broader market under pressure post the release of the Fed minutes. In fact, the all-world fund iShares MSCI ACWI ETF ACWI lost about 0.4% on Feb 22.

However, there are certain investing areas which held their heads high and even hit a 52-week high on the day. Below we highlight those areas.

Sizzling Tech Investing Areas

The technology sector has been in great shape. Emerging new technologies like cloud computing, big data and Internet of Things (IoT) are expected to drive the sector in the coming days. This kind of a cyclical sector often grows in an improving economy.

The latest Fed minutes displayed that both voting members and the other policymakers had upgraded forecasts for the economic outlook since last December.

Another reason to be bullish on the sector is increasing dividends and buybacks by tech companies. Per the Earnings Trends issued on Feb 14, the technology sector is expected to grow 22.6% on fourth-quarter 2017 earnings versus the projected growth of 13.9% for the S&P 500.

Software

Earnings from the Computer Software – Services sector are expected to grow 33.5% in the fourth quarter of 2017, marking the third-highest growth rate among seven tech categories. PowerShares Dynamic Software ETF PSJ, SPDR S&P Software & Services ETF XSW and iShares North American Tech-Software ETF IGV are expected to cash in on this winning trend.

Internet & Social Media

Internet and social media stocks are riding high on rising demand for online activities. Investors should also note that semiconductor companies play a major role in the IoT space. Now, the IoT chip market is projected to register “an annual growth rate of almost 16% over the next five years and hit $17 billion by 2022, according to Research and Markets.”

In fact, the Electronic – Semiconductors segment is expected to log about 68.1% earnings growth in the fourth quarter of 2017, per Earnings Trends. Global X Social Media ETF SOCL), First Trust Dow Jones Internet ETF FDN and PowerShares NASDAQ Internet ETF PNQI are some of the funds that should gain from the online hype (read: What Investors Need to Know about the Internet of Things ETF).

Cyber Security

The fear of cyber-attacks is rising rapidly and so is the demand for cyber security. Be it the ransomware WannaCry or Petya, one or another cyber incident kept disrupting global stability in the last few months. Last September, Equifax, the credit reporting agency, revealed a huge data breach. Most recently, the Pyeongchang Winter Olympics faced a similar issue. Needless to say, demand for cyber security-related stocks are red hot for now (read: Cyber Security ETFs Scale New Highs on Robust Q4 Earnings).

ETFMG Prime Cyber Security ETF HACK and First Trust NASDAQ Cybersecurity ETF CIBR have thus successfully brushed off rising rate worries and remained steady.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
SPDR-DJ IND AVG (DIA): ETF Research Reports
 
NASDAQ-100 SHRS (QQQ): ETF Research Reports
 
SPDR-SP 500 TR (SPY): ETF Research Reports
 
PURFDS-ISE CYBR (HACK): ETF Research Reports
 
PWRSH-ND INTRNT (PNQI): ETF Research Reports
 
FT-DJ INTRNT IX (FDN): ETF Research Reports
 
SPDR-SP SOF&SER (XSW): ETF Research Reports
 
GLBL-X SOCL MDA (SOCL): ETF Research Reports
 
ISHRS-MSCI ACWI (ACWI): ETF Research Reports
 
ISHARS-NA TEC-S (IGV): ETF Research Reports
 
FT-NDQ CYBERSEC (CIBR): ETF Research Reports
 
PWRSH-DYN SFTWR (PSJ): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

  • The main reason for the stock market’s decline is NOT the coronavirus
    Business
    MarketWatch

    The main reason for the stock market’s decline is NOT the coronavirus

    The coronavirus is getting a bum rap as the cause of the stock market's recent weakness. That decline gathered steam on Monday, when the Dow Jones Industrial Average (DJIA) was at one point down more than 500 points. It's not that any of us should have sympathy for the virus, of course.

  • Lucky's Market files for bankruptcy, plans to shut down Colorado headquarters
    Business
    American City Business Journals

    Lucky's Market files for bankruptcy, plans to shut down Colorado headquarters

    Lucky's Market has filed for bankruptcy and is closing its corporate headquarters in Niwot. The Lucky's Market Parent Company — a registered LLC — owes about $36 million to its 30 largest creditors, based on Chapter 11 bankruptcy reorganization petitions the company and its affiliated stores filed Monday in the U.S. Bankruptcy Court in Delaware. The company checked the box on the paperwork saying it had between 10,001 and 25,000 creditors.

  • Typical Retirement Savings By Age Groups: Are Yours Bigger?
    Business
    Investor's Business Daily

    Typical Retirement Savings By Age Groups: Are Yours Bigger?

    Active savers — in this case, Americans who own an IRA and-or a 401(k) account in the custody of Fidelity Investments — had savings for retirement of $215,400 as of Sept. according to new data IBD has obtained from Fidelity. In contrast, the average for all working-age families is shockingly low.

  • Fog grounded choppers at time of Bryant crash
    News
    Associated Press Videos

    Fog grounded choppers at time of Bryant crash

    The helicopter carrying Kobe Bryant and eight others that crashed into a hillside outside Los Angeles was flying in foggy conditions considered dangerous enough that local police agencies grounded their choppers. All nine people on board died. Jan.

  • The first stock-market ‘correction since October has begun,’ says Morgan Stanley analyst who called 2018 tech rout
    Business
    MarketWatch

    The first stock-market ‘correction since October has begun,’ says Morgan Stanley analyst who called 2018 tech rout

    However, his prediction that the market is more likely to decline by half that much indicates that he's forecasting a retreat from stocks that have hovered near records rather than a traditional correction. Wall Street investors, perhaps, shouldn't need the strategist to determine the current state of the equities, however. On Monday, the Dow Jones Industrial Average Stock markets have traded south in the past several sessions, with the Dow momentarily losing its grip on gains for 2020, as a rapidly spreading virus in China has sparked fears of a global outbreak that could curtail economic expansion in the world's second-largest economy.

  • The stock market’s biggest problem this week isn’t the coronavirus or Mideast tensions, strategist warns
    Business
    MarketWatch

    The stock market’s biggest problem this week isn’t the coronavirus or Mideast tensions, strategist warns

    Hogan said the S&P 500 could see a pullback of as much as 5% — and it won't be because of the coronavirus or rising tensions with Iran. With a crowded slate of earnings on tap, Hogan warned that it will probably be the biggest winners getting the biggest haircuts. “There are five technology names that are driving a good chunk of the movement in the S&P. On the other side, you see the utilities index,” he explained.

  • Analysts: 2 Big 8% Dividend Stocks to Buy (And 1 to Sell)
    Business
    TipRanks

    Analysts: 2 Big 8% Dividend Stocks to Buy (And 1 to Sell)

    Dividends provide a steady income stream, whether markets go up or down. With that in mind, we delved into the market data from TipRanks.com to get the lowdown on 3 high-yield dividend stocks, two of which analysts think are set to shine in 2020, and one whose prospects aren't quite as bright. Viper has exploration rights in more than 14,000 acres in the Midland, which are exploited by third parties and subsidiaries who then pay the royalties that make up Viper's income.

  • Business
    Barrons.com

    3 Biotech Stocks Are Soaring Because Everyone Wants a Coronavirus Vaccine

    Shares of a handful of small and mid-sized biotechs that are working on vaccines for the Wuhan coronavirus soared on Monday, as worries over the spread of the illness weigh on the broader markets. “Companies stating their interest in development vaccines for coronavirus are likely too late, as we saw similar commentary around SARS and other similar situations,” wrote Jefferies health care trading desk analyst Jared Holz in a note Monday morning. The news reports bumping the three biotech stocks relate to early-stage programs using novel scientific modalities to move quickly on possible vaccines for the disease, which has killed at least 80 people worldwide.

  • Liz Weston: Retirees' top money regrets
    Business
    Associated Press

    Liz Weston: Retirees' top money regrets

    In a previous column, I detailed retirees' biggest lifestyle regrets, such as not traveling more before their health gave out and not communicating clearly with a partner about what they hoped retirement would be like. The big ones, of course, are starting to save too late and not saving enough, but there are other common regrets, according to certified financial planners from the Financial Planning Association and the Alliance of Comprehensive Planners. About 1 out of 3 Social Security recipients apply for benefits at the earliest age, which is 62.

  • Senators Elizabeth Warren and Bernie Sanders get a message from this private equity titan
    Politics
    Yahoo Finance

    Senators Elizabeth Warren and Bernie Sanders get a message from this private equity titan

    Pagliuca was responding to a question by Yahoo Finance Editor-in-chief Andy Serwer on the attacks by Warren and the likes on private equity's practices. Some of those practices include, according to many in the finance industry and government, not paying enough in taxes and firing people at acquired companies to earn fatter returns on investment. Pagliuca was quick to note Bain Capital's acquired companies have grown revenue two times faster than S&P 500 components and have created 1.1 million more jobs since being bought by the private equity shop.

  • What the new FICO credit score reveals about the precarious state of Americans’ finances
    Business
    MarketWatch

    What the new FICO credit score reveals about the precarious state of Americans’ finances

    Fair Isaac Corp. (FICO) is changing how it calculates credit scores, and the new criteria reveal some of the trouble spots in Americans' financial health. Two of the most substantial changes in the new scoring models, FICO Score 10 and 10T, are how they account for personal loans and how they measure creditworthiness over time. Previous FICO score models were not anchored as much to personal loan data, yet since 2015 the number of personal loans has risen 42%, making personal loans the fastest-growing category of debt in the country.

  • 3 “Strong Buy” Stocks Under $5 That Are Ready to Run Higher
    Business
    TipRanks

    3 “Strong Buy” Stocks Under $5 That Are Ready to Run Higher

    With Orbcomm's shares trading roughly 4X our 2021 adjusted EBITDA estimate, we view the risk reward on the shares as very positive… We believe if management can execute, the shares should return to higher multiples. What does it mean, then? It means that Walkley keeps his Buy rating on Orbcomm.

  • A-list celebrities attend lavish party at Jeff Bezos' D.C. home
    Politics
    Yahoo Finance Video

    A-list celebrities attend lavish party at Jeff Bezos' D.C. home

    Jeff Bezos threw a lavish party at his new Washington, D.C. home, and some high-profile names were in attendance. These include Federal Reserve chairman Jerome Powell, Ben Stiller, Kellyanne Conway, Bill Gates, and Jared and Ivanka Trump.

  • Mortgage Rates Slide Again and Head Toward All-Time Lows
    Business
    MoneyWise

    Mortgage Rates Slide Again and Head Toward All-Time Lows

    Mortgage rates that had been sitting on the slopes have gone back on their downhill course this week — possibly on their way to record territory. “Rates fell to the lowest level in three months and are about a quarter point above all-time lows,” said Sam Khater, chief economist with Freddie Mac, in a statement on the mortgage giant's latest weekly survey. If you're shopping for a home or are thinking about a refinance, you might compare mortgage rates and find you have the perfect opportunity to save serious money on interest.

  • Why Warren Buffett's Berkshire Hathaway is a hot stock pick for millennials
    Business
    Yahoo Finance

    Why Warren Buffett's Berkshire Hathaway is a hot stock pick for millennials

    When it comes to investing, it appears 89-year-old Warren Buffett is still hip with millennials.The Oracle of Omaha's Berkshire Hathaway landed on millennials' top 10 list of investments in the fourth quarter of 2019, according to new research from the clearing house Apex Clearing. To be sure, they're buying the less expensive Berkshire Hathaway Class-B stock (BRK-B), which currently trades at around $200 per share, compared to Berkshire's Class-A shares (BRK-A), which have traded at or near $300,000 per share for the last two years. The Apex Q4 Millennial 100 report analyzed more than 734,000 investment accounts owned by U.S.-based investors with an average age of 31.

  • Stock Market Coughs After Catching Chinese Flu; Time To Take Profits In These 2 Big Names?
    Business
    Investor's Business Daily

    Stock Market Coughs After Catching Chinese Flu; Time To Take Profits In These 2 Big Names?

    The stock market fell sharply early Monday but recovered from the lows in later trading as concerns about the spread of the deadly Chinese coronavirus hit markets around the world. Apple and Tesla, both with deep ties to China and reporting earnings this week, fell. The Nasdaq, a haven for growth stocks, bore the brunt of the flu-related sell-off, declining 1.7%.

  • Stock soars for Cincinnati firm that could help combat coronavirus
    World
    American City Business Journals

    Stock soars for Cincinnati firm that could help combat coronavirus

    The value of Meridian Bioscience Inc. stock soared by nearly 40% on Monday on news that one of the firm's test kits is being used by diagnostic companies and laboratories in China to develop fast and accurate screening assays for the deadly new strain of coronavirus. The respiratory illness was first detected in Wuhan, China, but has spread rapidly to other countries. China has restricted travel for 35 million people because of the virus, which has been linked to 81 deaths and nearly 3,000 other cases.

  • Boeing 737 Max Could Get FAA OK Soon But Earnings Promise Huge Sticker Shock
    Business
    Investor's Business Daily

    Boeing 737 Max Could Get FAA OK Soon But Earnings Promise Huge Sticker Shock

    The timeline for resuming production on the Boeing 737 Max and returning it to service will be big topics when the company reports earnings Wednesday. Analysts see Boeing's earnings falling 68.4% to $1.73 per share, excluding any new charges, with revenue down 23.5% to $21.67 billion. "As we noted in our 4Q19 earnings preview, we are expecting Boeing's upcoming results to be 'an absolute disaster,' and that now looks guaranteed," wrote Vertical Research analysts Robert Stallard and Karl Oehlschlaeger in a note.

  • Apple Q1 earnings will put its China rebound in focus
    Business
    Yahoo Finance

    Apple Q1 earnings will put its China rebound in focus

    Apple is set to announce its Q1 2020 earnings results on Tuesday, giving investors and analysts their first solid look at the company's performance during the crucial holiday sales period, as well as a better understanding of how well the iPhone 11 has sold in its first few months of availability. The large year-over-year jump in expected revenue is a result of improved sales in China, which saw a significant slowdown for Apple in 2019, prompting CEO Tim Cook to issue a rare guidance revision ahead of the company's Q1 2019 earnings report. Importantly, analysts increasingly believe iPhone 11 sales outperformed their previous estimates, which may have helped Apple beat expectations in the quarter.

  • Business
    Barrons.com

    AT&T Reports Earnings Wednesday. Here’s What To Expect.

    On the other, changing technologies and consumer preferences keep the pressure high on its DirecTV satellite TV and WarnerMedia entertainment units. AT&T (ticker: T) is scheduled to report its fourth-quarter earnings on Wednesday before the market opens. Any new details about AT&T's capital allocation priorities—the balance between dividend payments, share buybacks, investments, and debt reduction—will also be a focus.

  • Business
    Barrons.com

    Coronavirus Isn’t the Stock Market’s Biggest Problem This Week, Strategist Warns

    Longtime stock-market bull and National Securities chief market strategist Art Hogan is bearish ahead of what looks to be a very busy week of trading. My guess is if we're going to rationalize a market that's pretty stretched right here, it's going to happen right now,” he said in a CNBC interview. We have about a third of the S&P 500 reporting.

  • U.S.
    TheStreet.com

    Afghanistan Plane Crash Unlikely Linked to Boeing; US Military Investigating

    Boeing Co. shares extended declines Monday after reports that one of its planes was involved in a crash in the Taliban-controlled Afghan province of Ghazni. Later reports, however, indicated that the aircraft involved in the crash could belong to the U.S. Military, and the acting CEO of Ariana Afghan has said none of his company's fleet have been reported missing. A Taliban spokesperson later claimed responsibility for the crash, while a U.S. Military spokesperson told the Associated Press that the Army was investigating the claims.

  • Business
    MarketWatch

    Dow down 414 points on losses for American Express, UnitedHealth stocks

    Dragged down by losses for shares of American Express and UnitedHealth, the Dow Jones Industrial Average is in a selloff Monday morning. The Dow (DJIA) was most recently trading 414 points lower (-1.4%), as shares of American Express (AXP) and UnitedHealth (UNH) have contributed to the blue-chip gauge's intraday decline. American Express's shares have fallen $6.09 (4.5%) while those of UnitedHealth are off $9.60 (3.3%), combining for a roughly 106-point drag on the Dow.

  • Avenatti Googled ‘Insider Trading’ Before Nike Meeting
    U.S.
    Bloomberg

    Avenatti Googled ‘Insider Trading’ Before Nike Meeting

    Celebrity attorney Michael Avenatti did internet research on put options and insider trading before trying to extort millions of dollars from Nike Inc. federal prosecutors told a judge. Lawyers for the government on Monday told U.S. District Judge Paul Gardephe in Manhattan that they intend to show Avenatti's search history to jurors at a two-week trial getting underway this week, calling it evidence of the California attorney's state of mind during the alleged crime.

  • AMD chief Lisa Su joins Cisco board as networking giant touts 5G, silicon products
    Business
    American City Business Journals

    AMD chief Lisa Su joins Cisco board as networking giant touts 5G, silicon products

    Lisa Su, the CEO and president of chipmaker Advanced Micro Devices Inc., has joined the board of San Jose-based Cisco Systems Inc. Cisco said Monday that Su, who has been CEO at AMD since 2014, joins the board of the networking giant effective immediately. "Lisa is an accomplished business leader with deep expertise in the semiconductor industry," Cisco CEO and Chairman Chuck Robbins said in a statement. "We look forward to her contributions to Cisco's board and our business as we continue to develop ground breaking technologies, and a new internet for the 5G era that will help our customers innovate faster than ever before." At Santa Clara-based AMD, Su has overseen record revenues and new products.