|Bid||266.53 x 800|
|Ask||266.67 x 1100|
|Day's Range||266.25 - 266.70|
|52 Week Range||221.99 - 267.31|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.15%|
President Trump imposed $200 billion worth of tariffs on Chinese goods – although at a lower rate than expected – and China retaliated with tariffs on another $60 billion of U.S. goods. Investors will be watching to see if President Trump will respond with further tariffs on China. In recent comments, he suggested potential tariffs on an additional $267 billion in Chinese goods, which would cover the value of all goods that the U.S. buys from China.
On September 13–20, US equity indexes had the following correlations with US crude oil November futures: the Dow Jones Industrial Average (DIA): 16.5% the S&P 500 (SPY): 0.1% the S&P Mid-Cap 400 (IVOO): -13.1%
On September 20, US crude oil November futures fell 0.6% and settled at $70.32 per barrel ahead of OPEC and non-OPEC members’ meeting. On the same day, the Energy Select Sector SPDR ETF (XLE) was unchanged. The S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) rose 0.8% and 1% on September 20. Mute energy stocks might have helped these indexes rise. In Part 3 of this series, we’ll analyze US crude oil’s relationship with these equity indexes.
At the end of the second quarter, Caterpillar’s (CAT) debt was $36.17 billion. Caterpillar’s debt increased in the second quarter after it declined for three years. Debt includes short-term borrowings, long-term debt due within one year, and long-term debt.
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Friday’s open to this week’s Thursday close.
The CBOE SKEW Index was developed in the aftermath of the 1987 stock market crash, as a measure of investor unease with the market. It recently registered its highest levels of worry among investors since its inception in 1990, Business Insider reports.
On September 19, US crude oil November futures rose 1.7% and closed at $70.77 per barrel—the highest closing level for active US crude oil futures since July 13. In the last trading session, the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) rose 0.1% and 0.6%, respectively.
Initial Jobless Claims reached a near-49-year low to 201K -- down another 3000 claims from the previous week's slightly upwardly revised 204K and 213K from the previous week.
Other market gurus have been raising alarms this year, warning that wrenching stock market declines are on the horizon. Among the respected long-time market watchers who aren't buying into doom and gloom is Richard Bernstein. After 21 years as a top investment strategist with Merrill Lynch, he founded investment advisory firm Richard Bernstein Advisors in 2009, where he serves as CEO and chief investment officer (CIO).
For the past few years, Boeing (BA) has been behind Airbus in the order booking race. However, Boeing seems set on breaking that record in 2018.
26 analysts are currently tracking Boeing (BA) stock. One analyst dropped the stock coverage after Q2 2018 results. Currently, eight analysts have a “strong buy” recommendation on the stock. 11 analysts have a “buy” recommendation. Seven analysts tracking the stock have a “hold” rating. There aren’t any “sell” or “strong sell” ratings on Boeing stock.
Airbus left no stone unturned to win the 2017 order race against Boeing, and its efforts paid off extremely well. The aircraft maker booked 1,229 gross orders and 1,109 net orders for the year. Its A320 series had the most orders with it alone accounting for 1,054 net orders. The A350 series booked 36 orders and the A330 series booked 21 orders.
It seems like fund managers can’t get enough of technology stocks. They continue to invest in the so-called FAANG and BAT stocks—US stocks Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), and Google (GOOGL) and China’s Baidu (BIDU), Alibaba (BABA), and Tencent (TCEHY). They’re the most crowded trades.
On September 18, natural gas October futures rose 4.2% and settled at $2.933 per MMBtu (million British thermal units)—the highest closing level for active natural gas futures since August 23.
This is a dramatic step for the largest U.S. bank to take, given that U.S. stocks have more than quadrupled in value since their financial crisis lows in March 2009. U.S. stocks have continued to surge ahead in 2018, rebounding from a sharp correction earlier this year, and thus far have defied ominously bearish warnings from some notable market gurus.
New economic data crosses the tape. These findings will be of particular importance to Fed members who reconvene next week to decide on new interest rate policy.
BAML (Bank of America Merrill Lynch) conducted a survey that polled 244 global investors with $742 billion in total assets under management from September 7–13. The divergence theme in equity markets was quite evident in the allocations in September. The equity allocations to emerging markets (EEM) fell to 10% underweight in September compared to 1% underweight in August.
In Could Trade Tensions Support the US Dollar Again? we discussed how the dollar makes a comeback after trade tensions seem to escalate. Year-to-date, gold prices have fallen 8.6% while the US Dollar Index has risen 4.8%. As the news of the new round of trade tariffs hit the market, gold prices fell while the dollar rose.
US markets have been quite resilient for the most part in 2018—even in the face of escalating trade tensions between the United States and the European Union, Canada, Mexico, and China. The markets have tended to dive initially only to erase most of the losses later on—probably because the markets believe that the United States has the upper hand in the trade situation and has less to lose. In contrast, China’s major indexes have plunged ~25.0% from their highs this year, and its economic growth is also feeling the pressure from these escalating trade tensions.
On September 17, US crude oil October futures fell just 0.1% and settled at $68.91 per barrel. However, in the last trading session, the Energy Select Sector SPDR ETF (XLE) rose 0.2%.
Which Sectors Are Worried about Rising US–China Trade Tensions? Are there unintended consequences to the trade war? CLSA’s head of economic research, Eric Fishwick, believes that the trade war between the US (SPY) (DIA) and China (FXI) could inadvertently encourage China to build its political and economic influence.
Which Sectors Are Worried about Rising US–China Trade Tensions? President Trump is taking a tough stance against China (FXI) on trade tariffs and other concessions for access to its markets. China’s major stock indexes have plunged ~25.0% from their highs this year, and its economic growth is also feeling pressure from these escalating trade tensions.
The US dollar (UUP) made a comeback on September 14 after reports suggested that Donald Trump is planning to impose tariffs on Chinese goods worth $200 billion, despite trade talks. The US dollar has benefited significantly from safe-haven bids due to escalating trade tension, especially between the United States and China (FXI).
Between September 7 and 14, US crude oil October futures rose 1.8% and closed at $68.99 per barrel. In September, US crude oil active futures have fallen 1.2%, after rising 1.5% in August. The US dollar’s fall may have boosted oil prices, and oil inventories‘ large fall may have been behind WTI’s outperformance of Brent oil.
Amid the US-China (MCHI) trade tension, investors should note that bilateral trade between the countries is lopsided—China imports far fewer goods from the United States than it exports. Therefore, China will likely not be able to retaliate dollar-for-dollar to tariffs on $200 billion in Chinese goods. However, it may explore other ways to respond.