46.45 +0.03 (0.06%)
Pre-Market: 4:03AM EDT
|Bid||45.99 x 1300|
|Ask||46.80 x 100|
|Day's Range||46.24 - 46.74|
|52 Week Range||37.51 - 54.00|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.74%|
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.
While the broader surge in commodities helped iron ore prices, China’s (FXI)(MCHI) surprise cut in its reserve ratio requirement (or RRR) for some Chinese lenders from the People’s Bank of China led to price gains in iron ore. This move is expected to improve the liquidity in the system, boosting economic activity.
Let's face it, the world of Exchange Traded Funds (ETFs) can be daunting. There are over 1,700 ETFs out there with almost $3 trillion in assets. Sometimes that can mean too much choice. First off, the Vanguard Total Stock Market ETF, which covers the U.S. market, and the Vanguard FTSE All-World ex-U.S. ETF can be good choices to build a stock portfolio. Together these two, low-cost, passive funds own around 5,000 different stocks, with the All-World ex-U.S. fund having 1% or more exposure to 19 different countries including developed and emerging markets.
Asia ETFs are in the spotlight over potential trade disputes, Trump's bid to rejoin the Trans Pacific Partnership and bilateral talks between Japan and China.
China's economic expansion continues on the back of strong consumer spending. However, growth is expected to slow down in the coming months.
Nokia (NOK) has a device licensing agreement with China’s (FXI) HMD Global. Nokia and BlackBerry (BB) have outsourced their smartphone manufacturing businesses to third-party producers in China and Southeast Asia. Nokia generates revenue through royalties and licensing agreements.
Shares of consumer technology company GoPro (GPRO) rose 7.8% in the week that ended on April 13, 2018, to close at $5.26. GoPro stock rose 8% on April 13, 2018, after several websites reported that it might be acquired by China’s (FXI) Xiaomi. GoPro’s CEO, Nicholas Woodman, stated that the company was open to an acquisition and had hired JPMorgan (JPM) to look for potential buyers.
In the recent weeks, the performance of the US bond markets (BND) has been influenced by trade conflicts between the US and other nations, primarily China (FXI), rather than the underlying economic performance. First, there were the steel and aluminum import tariffs, which were followed by $50 billion worth of tariffs on Chinese imports. The fear of a full-blown trade war reduced risk appetite and increased demand for safe-haven assets like bonds, which further pushed yields lower.
The Philippines President Rodrigo Duterte is teaming up with the wrong partner to fight the country’s growing corruption problem—China, a country with a big corruption problem of its own.
The US Bureau of Economic Analysis publishes a monthly report on US international trade in goods and services that details the changes in imports and exports. The latest report indicated that the goods and services deficit was $57.6 billion in February, an increase of $0.9 billion from $56.7 billion in January. The trade deficit is currently at a nine-year high, and this could be cited as one of the key reasons the Trump administration has taken steps to increase trade barriers.
At the start of 2017, HP (HPQ) claimed the top position from China’s (FXI) Lenovo (LNVGY) to become the world’s leading PC (personal computer) manufacturer. At the end of 4Q17, HP led the PC market with a 23.5% share and 8.3% unit shipment growth. In comparison, global PC shipments rose only 0.3% in 4Q17. Top players Lenovo, Dell, Apple, ASUS, and Acer Group (ACEIY) had market shares of 22.2%, 15.7%, 8.2%, 6.4%, and 6.4%, respectively.
China's CPI and PPI data show signs of economic weakness. Moreover, risks of a trade war with the United States might intensify pressure.
Why did Susquehanna become pessimistic about AMD? A week before this news came out, Susquehanna analyst Christopher Rolland confirmed it, stating that he’d learned about it in his travels in Asia. He believed that this news would negatively impact AMD, so he downgraded the stock. Rolland estimated that AMD earns ~20% of its revenue from Ethereum miners who use its GPUs (graphics processing unit) to solve mathematical problems to mine cryptocurrency.
In fact, AMD fell another 1.8% as Susquehanna analyst Christopher Rolland downgraded the stock and reduced its price target from $13.0 to $7.50 over concerns surrounding cryptocurrency trends. Rolland even downgraded NVIDIA (NVDA) after he found out that a Chinese alternative to AMD’s and NVIDIA’s GPUs (graphics processing unit) is on its way for use in crypto mining. Rolland believes that AMD and NVIDIA earn 20% and 10% of their revenues, respectively, from cryptocurrency mining.
Despite efforts to defuse trade tensions between the world’s two largest economies, we haven’t seen much of an improvement in the friction between the US and China (FXI). Notably, the trade war escalated recently after President Trump talked about a tariff on $100 billion worth of Chinese goods. China, which previously vowed a retaliation on $50 billion worth of US goods, exported only $130 billion worth of goods last year to the US.
The global wearables market has been on an upward trajectory in both the fourth quarter and full-year 2017 with total shipment volumes reaching 37.9 million units in 4Q17 and 115.4 million units in 2017, as per IDC. Moreover, Apple (AAPL) became the biggest shipper of wearables in both the quarter and the year, owing to the surge in smartwatch shipment volumes. According to data from the International Data Corporation (or IDC), Apple moved past competitors Fitbit (FIT), Garmin (GRMN), and China’s (MCHI) (FXI) Xiaomi, and Huawei.
Ericsson (ERIC) has taken a beating in the radio market for several years. Ericsson launched the Ericsson Radio System (or ERS) in 2016, which has helped with cost reductions and improving service delivery efficiencies. At the end of 4Q17, 61% of radio deliveries were based on ERS, and Ericsson predicts this level will hit 100% by fiscal 2018.
The Swedish activist investor firm Cevian Capital has urged Ericsson (ERIC) to accelerate its cost savings program. During the company’s 4Q17 earnings call, Ericsson’s management stated that they’re on track to achieve the cost savings target of $1 billion by mid-2018. Cevian Capital has a share of over 8% in Ericsson as well as 5% of total votes.
Stocks are enjoying a relief rally to open the week on Monday but make no mistake: the volatility that’s been in play in recent weeks isn’t going anywhere. This looks and feels like a very short-lived reprieve ahead of more fireworks.
Apple’s (AAPL) Apple Watch has had a strong performance in 1Q18. In fact, Apple Watch posted over 50% growth in revenue and units in the last four quarters. Apple Watch also posted strong double-digit growth in every geographic segment.
Earlier in this series, we discussed the impact of the Federal Reserve’s rate hike on the US dollar (UUP). The Trump administration is looking into the huge US trade deficit. In 2017, the US trade deficit in goods was $796.0 billion in 2017, of which $342.0 billion was attributed to China.