|Bid||39.670 x 1200|
|Ask||39.680 x 40000|
|Day's Range||39.150 - 39.895|
|52 Week Range||38.490 - 54.000|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.39|
|Expense Ratio (net)||0.74%|
Shares of China-based companies pulled back in U.S. trade Tuesday after a two-day rebound by Chinese stock market indexes gave way to renewed pressure, contributing to a global stock-market selloff. U.S.-listed shares of Alibaba Group Holding Ltd. fell 1.6%, giving back a chunk of a sharp Monday rally. The stock is off more than 11% in the month to date. Among other U.S.-listed shares, JD.com Inc. fell 2.5%, NIO Inc. shed 5.5%, and iQUIYI Inc. pulled back 4.8%. The iShares China Large-Cap exchange traded fund was down 2.3%, leaving it off 7.5% in October. The Shanghai Composite ended 2.3% lower Tuesday, while the China Shenzhen Index dropped 1.9%.
The Nasdaq (QQQ) is down 9% this month, but still up 6% YTD. China (FXI) is down 30% this year. Germany (DAX) is down 13% this year. Only Brazil stands out nicely, up 10.5% so far this year. The DJIA (DIA) is hanging on to a 1% gain while the S&P 500 (SPY) is up just over 1%. When will the madness end? And should you be buying into to these daunting charts?
The Trump Administration has also been taking several other economic actions directed at China. In USMCA (United States–Mexico–Canada Agreement), the Trump Administration managed to get a clause that says that if any of the member countries enter into a trade agreement with a “non-market economy” the remaining countries can exit USMCA and sign a bilateral deal instead. China’s BRI (Belt and Road Initiative) has also faced criticism from the Trump Administration.
China has been at the forefront as President Trump tries to address the country’s rising trade deficit and the general offshoring of manufacturing jobs (SPY). While President Trump has imposed tariffs on $250 billion worth of Chinese goods, the Section 232 steel tariffs aren’t expected to have much of an impact on China’s steel exports. More restrictions on Chinese steel exports wouldn’t impact US steel imports or Chinese steel exports much.
Earlier this year, President Trump imposed a 10% tariff on aluminum imports and a 25% tariff on steel imports. The tariffs were imposed under Section 232 of the Trade Expansion Act of 1962 after the Department of Commerce’s investigation found that steel and aluminum imports were a threat to US national security. The Section 232 tariffs were the first major salvo by the Trump Administration.
Pot Stocks Get Smoked, Crash Nearly 10% The legal cannabis sector just got smoked, or blazed, but not in a good way. Pot stocks cratered the most in record for a single day, with the ETFMG Alternative Harvest ETF (NYSEARCA:MJ) plummeting 9.5% on volume close to 3x average. On top of it being the worst […] The post Market Morning: Pot Stocks Get Smoked, Bayer Breathing Room, More Tax Cuts, appeared first on Market Exclusive.
Shares of Alibaba Group Holding Ltd. shot up 3.4% in premarket trade Monday as part of a broad rally in China-based company stocks, following reassuring comments by China President Xi Jinping. The stock had tumbled 24% over the past three months through Friday, while the S&P 500 had slipped 1.2%, amid concerns over a trade war with the U.S. and a slowing economy. Monday's rally comes despite Benchmark analyst Fawne Jiang cutting the price target to $220 from $245, citing concerns that near-term earnings growth could come under pressure. Over the weekend, Xi emphasized support for the private sector, according to reports, and new details on proposed tax cuts were released, helping send the Shanghai Composite up 4.1%. The iShares China Large-Cap ETF , which had closed at a 17-month low on Thursday, ran up 3.0% ahead of Monday's open. Among other U.S.-listed shares of China-based companies, Nio Inc. hiked up 4.5%, iQiyi Inc. rallied 2.8% and JD.com advanced 3.3%.
Earlier this month, the IMF lowered its global growth forecast for 2018 and 2019 from 3.9% to 3.7%. At the beginning of the year, the IMF had raised its 2018 global economic growth forecast to 3.9% from 3.8%, calling it “the broadest synchronized global growth upsurge since 2010.” Six months down the line, while it maintained the growth forecast, it dropped the term “synchronized.” Now, even the growth forecast has been trimmed due to the trade war scare. Lower global growth isn’t encouraging for markets (QQQ).
Equity markets have come under pressure this month. The Invesco QQQ ETF has lost 6.9% in October, while the SPDR S&P 500 ETF (SPY) has shed 5.0%. Chinese equity markets have been pressured by a slowing economy amid its trade spat with the United States.
As a result, top Chinese officials from the People's Bank of China issued public statements to help quell the fear in the markets. "The recent stock market volatility is primarily the result of investor expectations and emotions," said the Chairman of the People's Bank of China, Yi Gang. China Securities Regulatory Commission Chairman Liu Shiyu issued a separate statement to help re-instill confidence in the capital markets.
Japan, long called the Land of the Rising Sun, made me wonder what we, as investors, should be calling China (FXI). China’s major indices are still down 25-30% this year alone. We know all the main excuses: tariffs from the US and excessive lending/credit bubble in China are leading to slower growth. Take a look a the relative performance this year between the S&P 500 (SPY) and the FXI, a popular large cap Chinese ETF.
To receive further updates on this iShares China Large-Cap ETF (NYSE:FXI) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of Power Options Weekly today. Today, I am recommending a bearish trade on the iShares China Large-Cap ETF (NYSE:FXI), a fund that tracks the results of an index made up of large-cap Chinese equities traded on the Hong Kong Stock Exchange. The stock market hates the unknown, and right now the biggest unknown factor is how the elections will impact the economy and the stock market.
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.
Apple (AAPL) has disclosed that some of its accounts were hacked in China (MCHI) (FXI) with the intention to steal money. In a statement on October 16, Apple apologized to Chinese users for these phishing scams, though the breach affected only some of the users. According to the company, the hackers duped some Apple users and then accessed their mobile-payment services such as Alibaba’s (BABA) Alipay and WeChat, through their Apple ID credentials and stole their cash.
Texas Instruments (TXN) supplies power management chips, analog IC (integrated circuits), and microcontrollers, which are used in almost all electronic devices, spanning industrial, automotive, communication equipment, personal electronics, and enterprise system markets. Texas Instruments is the world’s largest analog IC company, earning 67% of its revenue from the analog market and 24% from embedded processing. The personal electronics market is seasonal. The second and third quarters have been strong for Texas Instruments, with the company typically reporting double-digit sequential growth in the third quarter.
In the previous part of this series, we saw that Intel (INTC) stock has been on a downtrend. US tariffs on Chinese (FXI) imports, CPU (central processing unit) supply constraints, delays in 10 nm (nanometer) products, competition from Advanced Micro Devices (AMD), and the departure of its CEO could significantly impact Intel’s earnings. Despite these headwinds, Intel raised its 2018 revenue guidance from $67.5 billion to $69.5 billion in its second-quarter earnings call. Its upcoming third-quarter earnings on October 25 could shed some light on the financial impact of these headwinds.
In the BAML (Bank of America Merrill Lynch) October 2018 survey, while trade war concerns were still cited as the top concern among global fund managers, as they have been for six of the past eight months, the intensity of the concern dropped. About 35% of fund managers surveyed cited it as their top tail risk, which is lower than 43% and 57% of fund managers citing it a top risk in September and August, respectively. While the trade risk is still fresh and the recent trade escalations between the United States and China (FXI) have kept fund managers concerned about ongoing trade tensions, other risks have become more prominent.
Futures Down Again, China Hits 4-year lows, Yuan Throttled, Treasuries Back Above 3.2% US stock futures were down a bit but mostly subdued, while movement in Asia was a little wilder. China’ Shanghai Composite Index reached new 4 year lows today, down another 3% on the day as the Yuan (NYSEARCA:CYB) got perilously close to […] The post Market Morning: China, Yuan Crushed; Fed Minutes Sparse, HIV Meets Match, Exxon Wants China appeared first on Market Exclusive.
Unit shipments fell 13.5% in the second quarter of calendar year 2018, 11.7% in the first quarter of 2018, 7.9% in the fourth quarter of 2017, and 5.5% in the third quarter of 2017. Tablet sales have in fact declined for the last 15 consecutive quarters, according to research firm IDC. Despite this decline, Apple (AAPL) has managed to easily outperform markets and generate robust iPad sales.
According to the latest BAML (Bank of America Merrill Lynch) survey, investors’ outlook for economic growth has worsened further. In August, a net 7% of the managers surveyed expected global growth to slow down next year. In September, a net 24% of the managers surveyed expected global growth to slow down in the next 12 months.
According to market research company Gartner, Apple’s share in the global personal computer (or PC) market is estimated to decline in the third quarter of calendar year 2018 (or Apple’s fourth quarter of fiscal 2018). Global PC shipments have been estimated to be flat at 67.20 million units in the third quarter. Gartner estimated Apple’s (AAPL) MacBook shipments at 4.9 million units in the third quarter of 2018, a decline of 8.5% year-over-year compared to 5.4 million units shipped in Q3 2017.