|Bid||30,850.00 x 0|
|Ask||30,900.00 x 0|
|Day's Range||30,750.00 - 30,900.00|
|52 Week Range||25,680.00 - 33,400.00|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.00|
|Expense Ratio (net)||0.09%|
Previously, we discussed Mark Mobius’s view on the “tremendous opportunity” offered by North Korea. After the US-North Korea summit, the country’s tone has changed.
After the US-North Korea summit on June 12, geopolitical tension fell in the whole economy. North Korea signaled that it might open up its economy and take up bilateral relations with the United States (SPY) (QQQ). According to CNBC, Mark Mobius, emerging market investor and former executive chairman of Templeton Emerging Markets Group, “pointed to North Korea’s population of 25 million as a boon for investors.” North Korea’s step towards denuclearization and peace signals a potential commercial opportunity.
Gundlach is not the only major fund manager who thinks the Fed may have made a policy mistake. As they turned overweight on US stocks (SPY) (DIA) for the first time in 15 months, fund managers cited trade war risk as their number-one concern in June.
While fund managers have turned bullish on US equities (SPY), there is still no dearth of concerns. In the BAML (Bank of America Merrill Lynch) survey, 31% of respondents see a trade war as the biggest tail risk for the markets, up from 25% in May. The developments during the one-month period have again put the trade war risk at number one in June from its number two position in May.
Previously, we discussed Warren Buffett’s and Jamie Dimon’s optimistic views on the US economy (SPY) (DIA). At Berkshire’s 2018 annual shareholder meeting in May, Buffett told investors that Bitcoin is “probably rat poison squared,” and advised investors against cryptocurrencies.
There are various major economic indicators that investors should look out for this week: US (SPY) final services PMI UK (EWU) final services PMI Japan final services PMI France (EWQ) final services PMI Eurozone (EZU) (VGK) final services PMI German (EWG) final services PMI Spain final services PMI
Two legendary investors, Berkshire Hathaway (BRK-B) chair Warren Buffett and JPMorgan Chase (JPM) chair Jamie Dimon, shared their latest views on the US economy, the equity market, Bitcoin, and the healthcare business in a joint interview with CNBC’s Squawk Box.
Donald Trump seemed already isolated going into the G7 summit due to his mercurial approach to international diplomacy. US allies have been disappointed with the United States withdrawing from the Iran nuclear deal and pulling out of the Paris Agreement on climate change. The new war of words could further isolate the United States on the world stage.
The material sector is very sensitive to dollar index movement. While the Materials Select Sector SPDR ETF (XLB) rose 2% in May, it had fallen 0.7% year-to-date as of June 5. The material sector is an important component of the broader-market S&P 500 (SPY), which rose 2.1% in May.
Utilities form an important sector in the S&P 500 (SPY) and investors’ portfolios. The Utilities Select Sector SPDR ETF (XLU) fell 1.2% in May, while the broader-market S&P 500 rose 2.1%.
So far this week, the S&P 500 Index has increased ~1.4% to $2,772.35 on June 6, up from last week’s close of $2,734.62. Although the S&P 500 Index is making a series of higher lows, what’s missing so far is a higher high on the daily chart. A new uptrend in the S&P 500 would be confirmed only if it makes a higher high by moving above $2,801.90.
With that said, let’s take a look at the 11 S&P 500 (SPY) sectors and try and determine which ones have some value. All categories are based on the Level 1 S&P 500 GICS Index. The energy sector is up 6.2% this year, edging out the performance of the S&P 500 as a whole at +3.5%.
In the previous article, we discussed the outcome of the latest Business Roundtable CEO Economic Outlook Survey. During a June 5 conference call to discuss this survey, JPMorgan Chase’s (JPM) CEO, Jamie Dimon, said, “One of the flies in the ointments is this trade stuff. Following its trade negotiations with China (FXI) in May, the Trump administration announced on May 31 that it would impose new tariffs on steel and aluminum imports from Canada and Mexico. Trump’s decision appears to signal that NAFTA is less likely to help the United States’ trade relations with these two neighboring countries.
The consumer staples sector is important for investors, as its defensive nature helps them during market turmoil. The Consumer Staples Select Sector SPDR ETF (XLP) fell 1.5% in May, while the broader-market S&P 500 (SPY) rose 2.1%. Major XLP holdings Procter & Gamble (PG), PepsiCo (PEP), and Coca-Cola (KO) returned 1.1%, 0.23%, and -0.5%, respectively, in May.
The broader-market S&P 500 (SPY) rose 2.1% in May. The CBOE (Chicago Board Options Exchange) volatility index, which measures the S&P 500’s volatility, fell 3.1%.
Previously in this series, we saw that the broader-market S&P 500 (SPY) and its major sectors improved in May. However, various changes in Donald Trump’s trade rules, North Korea talks, and trade negotiations affected markets.
President Trump has taken a hard stance on trade. The Commerce Department is now investigating the impact of automotive imports on US national security. The SPDR S&P 500 (SPY), which had turned negative at one point this year, is now in the green.
Previously, we saw that the broader-market S&P 500 (SPY) rose 2.1% in May despite political turmoil. The energy sector also rose.
The S&P 500 Index rose ~0.07% to 2,748.80 on June 5 due to a rise in materials and consumer discretionary stocks. Bullish sentiments due to the increase in the US service sector in May and record high US job openings in April have been driving the S&P 500 higher. Four out of the ten major sectors in the S&P 500 rose on June 5.
Investors should assess whether the financial sector could recover in June after its poor May performance. Previously in this series, we discussed how the broader-market S&P 500 (SPY) gained in May despite various macro events.
On June 5, the Bureau of Labor Statistics released its Job Openings and Labor Turnover Survey (or JOLTS) data for April. The JOLTS data are based on a monthly survey that collects information on new employees hired, employees who have quit, employees who have been asked to leave, and employees who have separated from their jobs for other reasons. There are about 16,000 entities in government, private industry, and the non-farm sector that participate in the survey.
Although many investors believe that they should “sell in May and go away,” major US indexes proved them wrong this year. The S&P 500 (SPY), Dow Jones Industrial Average (DIA), and NASDAQ Composite (QQQ) rose 2.1%, 1%, and 5.3%, respectively, in May. Although US equity markets improved in May, various macro events affected market movement.
After gaining for two consecutive trading weeks, the S&P 500 started this week on a stronger note by rising to ten-week high price levels on Monday. Carrying forward the strength, the S&P 500 opened higher on June 5 and closed the day slightly higher. On Tuesday, five out of 11 major S&P 500 sectors rose.
Donald Trump has slapped Section 232 tariffs on steel and aluminum imports from NAFTA and European Union countries, indicating that Commerce Department findings suggested that steel and aluminum imports threaten US national security. Last month, the Commerce Department initiated a similar probe into automobile imports. While the Section 232 steel tariffs have lifted US steel prices and are expected to boost earnings of steel companies such as U.S. ...
Upon Donald Trump’s election in 2016, riding the “Make America Great Again” slogan, Trump talked about protecting US jobs, boosting the country’s infrastructure, and overhauling the country’s tax bill. Trump has delivered on tax reform by lowering tax for US corporates, strengthening US companies’ earnings and financial markets. The SPDR S&P 500 (SPY) rose sharply last year as Trump pursued a pro-business agenda.