43.00 -0.02 (-0.05%)
After hours: 4:01PM EDT
|Bid||43.04 x 46000|
|Ask||43.05 x 308700|
|Day's Range||42.69 - 43.06|
|52 Week Range||40.63 - 52.08|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.69%|
Live from the floor of the New York Stock Exchange, Yahoo Finance's Jared Blikre joins Alexis Christoforous to discuss the latest moves.
This week marks the 10-year anniversary of the bankruptcy of Lehman Brothers, the unofficial start off the financial crisis. Since then we've seen central banks pump trillions into global markets and while asset prices have largely recovered, economic growth has been uneven. Mohamed El-Erian is the Chief Economic Adviser at Allianz and he joined The Final Round to talk about the current state of the markets, the global economy, and what we've learned since the crisis.
Stocks are mixed today as trade fears linger and technology struggles. We are at the start of what is historically one of the toughest months for stocks. Yahoo Finance's Seana Smith and Dion Rabouin talk with Jason Browne, Chief Investment Strategist at FundX Investment Group.
A New York Times op-ed claims senior officials inside the Trump Administration are involved in a conspiracy against the President. Yahoo Finance's Seana Smith, Dion Rabouin, Rick Newman, and Dan Roberts discuss along with Third Seven Advisors' Michael Block.
Are emerging markets flashing a global warning sign? The U.S. vs. the world, with Chris Verrone, Strategas Research Partners, CNBC's Melissa Lee and the Fast Money traders, Pete Najarian, Karen Finerman, Steve Grasso and Guy Adami.
A record number of fund managers in the BAML (Bank of America Merrill Lynch) September survey believe that gold (IAU) is undervalued, trading at a 17-year low. The SPDR Gold Trust ETF (GLD) has fallen ~8.5% year-to-date and ~13% from its April peak. It’s usually considered a safe-haven asset in which investors take refuge in the event of uncertainty and risk. However, gold has not been able to draw safe-haven bids so far in 2018 since the strong US dollar (UUP) keeps weighing it down.
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.
Emerging-market stocks have been one of the most volatile asset categories of 2018, suffering major losses as investors grapple with severe headwinds.
The Nasdaq Composite shed 1.43% at Monday's closing bell, thanks to investors fretting over the additional tariffs U.S. President Donald Trump is set to impose on $200 billion of Chinese goods. Apple lost 2.7% on potential issues looming as the trade war escalation between the U.S. and China could negatively impact computer parts. While the trade wars continue to move and shake the U.S. capital markets, it hasn't deterred investors from deploying capital into exchange-traded funds (ETFs)--$167.9 billion worth of inflows.
The iShares MSCI Emerging Markets Index Fund ( EEM) has been sold aggressively since January 2018, when the Trump administration fired the first shot in a multi-front trade war focused on Chinese goods and north-south commerce. The index has fallen nearly 20% since that time, mired in a bear market that should grow exponentially worse following the impositions of $200 billion in new tariffs.
The CFTC (Commodity Futures Trading Commission) reports the position of major players in the futures market through its COT (Commitment of Traders) report. According to the COT report for the week ended September 4, money managers resumed building their short positions in gold futures. The money managers increased their net short positions from 75,772 contracts to 82,722 contracts in the latest week.
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 capital markets possibly got an early smoke signal that the current bull run in U.S. equities might be stopping for air as the latest consumer price index numbers showed inflation rose at a slower pace than expected. During this bull run that has seen a heavy emphasis on growth-oriented plays, U.S. equities have been the default maneuver, but that may change with a steady shift to value, which could benefit China and emerging markets. While the stock market has been largely tepid this week, the major indexes returned to their upward trajectory as the Dow, Nasdaq Composite and S&P 500 all saw gains in today's trading session, helped, in part, by renewed trade talks between the U.S. and China.
The strong dollar, political volatility in Brazil, trade wars with China and chaos in Turkey are among the factors punishing emerging markets assets this year. Year-to-date, the widely followed MSCI Emerging Markets Index is lower by 12.50%. This year, investors have yanked $5.12 billion from the iShares MSCI Emerging Markets ETF (EEM) , which tries to reflect the performance of the benchmark MSCI Emerging Markets Index.
Trade war fears and a strong U.S. dollar continued to weigh on China and emerging markets stocks this week. But prices have fallen to such low levels that contrarians are starting to take note. I share their interest and think the time is ripe for a bullish play on the Emerging Markets ETF (NYSEARCA:EEM). EEM offers a broad-based way to bank on a rebound in this beaten-down area.
Year-to-date, the UUP ETF (UUP) has risen 5.2%, while the SPDR Gold Shares ETF (GLD) has declined 8.4%. According to a Reuters poll, while the US dollar could hold onto its gains for the rest of this year, it’s unlikely to maintain its ascent after that. Other factors supporting the dollar such as rate hikes and trade tensions have now been priced into the dollar. Morgan Stanley analysts also believe that the US dollar is “topping out,” according to Bloomberg.
Emerging-market stocks fall into bear-market territory amid tighter U.S. monetary policy, worries about global trade and economic meltdowns in Argentina and Turkey.
The inaugural game of the 2018 NFL season begins tonight with the Atlanta Falcons facing the Philadelphia Eagles. Every team has a go-to play like the quick slant to obtain that swift, short yardage gain to establish or maintain forward momentum and in the playing field of exchange-traded funds, U.S. ETFs have mimicked that call. According to a report from State Street Global Investors, 80% of all equity inflows were into domestic-oriented funds and $19.7 billion were deposited into U.S.-listed equity ETFs in August alone.
It's getting harder to ignore the risk of contagion in emerging markets that many investors have been pushing aside, even as conditions in Argentina and Turkey have worsened. The news out of emerging markets this week has been decidedly glum. South Africa unexpectedly dipped into recession in the second quarter, with weak growth exacerbating continued jitters about the rand and raising the risk of a credit downgrade.
Emerging markets are in decline, led by currency crises in Turkey and Argentina, but investors are not selling emerging markets funds. Either long-term investors are sticking to their guns or the worst is yet to come.