|Bid||0.00 x 1200|
|Ask||0.00 x 1200|
|Day's Range||246.42 - 247.53|
|52 Week Range||208.32 - 265.93|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.15%|
Most of the major U.S. indexes moved lower over the past week as 10-year and 30-year Treasury yields moved to multi-year highs, although small-cap stocks posted slight gains. Higher wages often lead to higher consumer prices, which translates to higher Treasury yields and potentially slower economic growth as lending rates increase. The SPDR S&P 500 ETF (ARCA: SPY) fell 0.73% over the past week.
Whether you have your heart set on Apple or Facebook, Alibaba or Baidu, or a domestic vs. foreign stock, you can access them all via ETFs.
Seadrill (SDRL) stock has skyrocketed. Seadrill has one of the highest winning streaks in the last three days. In the past year, Seadrill shares have traded in a range of $0.15–$0.74. The share price has gained 286% from its 52-week low.
Stock market volatility is well off its highs already, but it remains elevated compared to what we saw last year. First, it’s important to be aware of the index that measures volatility, the VIX. It should be noted that the VIX volatility index cannot be bought or sold like a stock.
The S&P 500 (SPY) moved higher last week and started this week on a stable note. After a brief pullback on Tuesday, the S&P 500 opened Wednesday on a stronger note and surged higher. On May 16, nine out of 11 major S&P 500 sectors rose. Strength in the materials and consumer discretionary sectors pushed the market higher. Weakness in the real estate and utilities sectors limited the market gains.
Nothing really to write home about. But this Philly Fed print of 34.4 looks pretty strong. It was last this strong in January of 2017 and then in May of 2017. It seems like the first real positive post-crap weather of April. I am aware that the Philly Fed is also not the main gauge of how markets will do. Markets (SPY) (DIA) are still pretty flat today, digesting (CSCO) and (WMT). But neither really were that disconcerting. Cisco even looks interesting since the numbers don’t fall off next year like a lot of tech companies and you get to collect a 3% dividend.
According to recent regulatory filings, activist investor Carl Icahn cut his holdings in Freeport-McMoRan (FCX). Icahn built his position in Freeport-McMoRan in 2015, when miners including BHP Billiton (BHP), Glencore (GLNCY), and Rio Tinto (RIO) were battling a commodity price slowdown.
President Trump extended the temporary Section 232 exemptions until the end of this month. As quoted by CNBC, the statement on the exemptions said, “The Administration is also extending negotiations with Canada, Mexico, and the European Union for a final 30 days. South Korea has managed to get a long-term exemption from the Section 232 tariffs.
Recently, Goldman Sachs shared its latest view on the economy, interest rate movement, and factors impacting the interest rate in a report. Two important things are happening in the US economy that haven’t happened since World War II. The US budget deficit is expanding and the unemployment rate has been falling in the US economy (DIA). According to data provided by the Bureau of Labor Statistics, the unemployment rate in the economy stood at 3.9% in April, which has been gradually falling since the high of 10% in October 2009.
US-China trade talks are scheduled for this week. While it’s tough to predict the outcome of US-China trade talks, let’s look at some of the events that have unfolded this year. Earlier this year, President Trump imposed Section 232 tariffs on US steel and aluminum imports.
Asset allocation is a common term that people use in the wealth management industry but most people do not fully understand it or how to apply it. In the simplest form, asset allocation is an investment strategy that is designed to balance risk and reward by investing a portfolio's assets across a wide spectrum of assets to achieve a healthy risk-adjusted return. The goal is to keep the portfolio diversified so it can perform in a manner that meets (or exceeds) the investor's goal(s), risk tolerance and investment time-frame.
The dividend yield is what investors get in return for every dollar they invest in a company’s equity during their holding period. Higher dividend yields along with good growth attract long-term investors. As of May 15, 3M’s (MMM) dividend yield stood at ~2.7%, the highest it has been since the fourth quarter of 2015.
After regaining strength last week, the S&P 500 started this week on a stable note. However, the S&P 500 (SPY) opened lower on May 15 and continued to fall. On Tuesday, ten out of 11 major S&P 500 sectors closed the day lower. Weakness in the real estate, healthcare, and IT sectors pushed the market lower.
May has not been a positive month for equity investors historically, and investors are quite familiar with the advice to “sell in May and go away.” Having said that, the first half of May has been positive for broader equity markets this year. Steel stocks like U.S. Steel (X) and AK Steel (AKS) have also seen some traction after the Section 232 exemptions spooked investors earlier in the month.
The US Services PMI (Purchasing Managers’ Index) improved marginally in April compared to March, according to data provided by Markit Economics. It was 54.6 in April and 54 in March, meeting the preliminary market estimate of 54.4.
My Economy column last week covered some of the ways the U.S. economy is affected by oil. Changes in oil-related business investment spending now more or less completely offset any changes to household consumption and nonoil investment. First, here is the long history of U.S. oil consumption, domestic production, and net imported supply: (Consumption is estimated as domestic production plus net imports before 1981 and as refinery and blender net input after that.
The S&P 500 (SPY) rebounded last week and broke the two-week losing streak. Carrying forward the strength, the S&P 500 opened higher on May 14, rose, lost momentum as the day progressed, and closed the day with limited gains. On Monday, seven out of 11 major S&P 500 sectors closed the day lower. Strength in the healthcare and energy sectors boosted the market. Weakness in the real estate, utilities, and telecom services sectors limited the market gains.
The US steel industry has seen considerable action in 1Q18. In March, President Donald Trump imposed tariffs on steel imports, acting on the results of the US Department of Commerce’s Section 232 investigation.
On May 4–11, US equity indexes had the following performances: The S&P 500 Index (SPY) rose 2.4%. The Dow Jones Industrial Average Index (DIA) rose 2.3%. The S&P Mid-Cap 400 Index (IVOO) rose 2.2%.
On May 8, 3M (MMM) announced its dividend for 2Q18. 3M’s board has declared a dividend of $1.36 per share—an increase of 15.7% on a YoY (year-over-year) basis. In 2Q17, 3M paid a dividend of $1.18 per share. To be eligible for the dividend, investors should hold the stock as of May 18. 3M intends to pay the dividend on June 12.
The S&P 500 started this week on a stable note and moved higher as the week progressed. After rebounding higher on Wednesday, the S&P 500 (SPY) opened higher on May 10 and surged to the highest levels traded since mid-March. All 11 major S&P 500 sectors rose on Thursday.
In his annual letter released on April 5, billionaire investor Jamie Dimon shared his views on the potential trade war between the United States (SPY) and China (FXI). Dimon believes that if the world’s two largest economies enter into a trade war, it will affect not only the two countries but also global trade. On March 22, when President Donald Trump announced that the United States would impose retaliatory tariffs on up to $60.0 billion worth of Chinese imports, the S&P 500 Index (SPY), the Dow Jones Industrial Average (DIA), and the NASDAQ Composite Index (QQQ) fell ~2.5%, ~2.9%, and ~2.4%, respectively, as global trade war concerns increased.
Jamie Dimon, legendary investor and chair and CEO of JPMorgan Chase (JPM), shared his latest views on the US economy in an interview with Bloomberg on May 8. Various macroeconomic factors have been improving gradually, which is strengthening economic growth. .It looks like this [economic growth] may have legs to go.
Boeing (BA) has a forward dividend yield of 2%, which is slightly higher than the average 1.6% forward dividend yield of the aerospace and defense sector peer group. Most of the companies in the aerospace and defense sector have a lower dividend yield. A company’s forward dividend yield is calculated by dividing a year’s worth of expected future dividend payments by its present stock price.