|Bid||244.54 x 1100|
|Ask||249.76 x 800|
|Day's Range||240.30 - 247.10|
|52 Week Range||183.25 - 278.19|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-8.74%|
|Beta (5Y Monthly)||0.85|
|Expense Ratio (net)||0.43%|
The healthcare sector is benefiting from trends that are creating products and services we all need in good times and bad, explains Adamo Mayers, editor of the Adam Mayers Blog.
The S&P 500 continues its run in Market State 1, now at 14 consecutive days. Typically, it is a good sign to see the Nasdaq leading the S&P 500. When analyzing the market, and more specifically the S&P 500, it is always interesting to look at the strength of certain market sectors.
The core inflation rate for August hits the highest level in a year while the overall annual consumer price inflation declines. These ETFs could be beneficiary of this trend.
Up nearly 24% year-to-date, the iShares US Medical Devices ETF (IHI) , the largest ETF dedicated to medical device manufacturers, is continuing its run of being on the of the best-performing healthcare ETFs over the past several years. Industry observers argue that medical technology companies can tap into increased healthcare spending among emerging economies while the U.S. market has matured and could experience slower growth. Healthcare is typically less correlated to the general economy and has, and will likely continue to, see high top-line growth due to the aging U.S population,” according to Seeking Alpha.
A wobbly stock market has knocked many ETFs off their highs, but iShares U.S. Medical Devices is holding near a prior high. Now the fund, boasting some of the best health care stocks, is in a buy area.
The healthcare sector is usually viewed as defensive and derives significant portions of revenue from within the U.S., making the group an ideal sector for investors looking to avoid the trade war controversy. The previously high-flying iShares US Medical Devices ETF (IHI) , the largest ETF dedicated to medical device manufacturers, is up 10.42% year-to-date, but some market observers see the fund's components as potentially vulnerable to a trade spat with Mexico, the largest trading partner of the U.S. “For the overall medtech space, I think it’s going to be manageable,” RBC Capital Markets analyst Brandon Henry told Barron’s on Friday morning.
With the benefit of hindsight, the old adage about selling in May and going away proved to be good advice this year. As has been the case for much of this month, trade wars sank stocks on Friday as the Nasdaq Composite and the S&P 500 slipped by 1.5% and 1.3% while the Dow Jones Industrial Average dropped 1.4% today.Source: Shutterstock Chinese retaliatory tariffs on over 5,100 U.S.-made products go into effect June 1. Beijing boosted tariffs on the U.S. imports to 20% to 25% from a previous range of 5% to 10%. However, those were not the tariffs that really roiled markets on Friday.The White House announced tariffs on Mexican imports to the U.S., slated to start at 5% on June 10 and rising to 25% until Mexico steps up to help the U.S. with the illegal immigration issue.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Washington will impose a 5% tariff from June 10, which would then rise steadily to 25% until illegal immigration across the southern border was stopped, President Donald Trump tweeted late on Thursday," reports Reuters. A Sea Of Red in the MarketsAt the close on Friday, all of the members of the Dow Jones Industrial Average were trading lower, making it easy to find offenders for May's final trading session. While some Dow Jones components were bigger losers on the day, Exxon Mobil (NYSEARCA:XOM) and Chevron (NYSE:CVX) each lost more than 1% as oil prices dropped. * 7 Stocks to Buy for Monster Growth Adding to the woes for the two largest U.S. oil companies are the aforementioned Mexico tariffs. Tariffs on Mexican oil could be a negative for U.S. refiners. As integrated oil giants, Exxon and Chevron have major refining operations."Mexico sends 600K-700K bbl/day of oil to the U.S., mostly to refiners that process the crude into gasoline, diesel and other products, while Mexico buys more than 1M bbl/day of U.S. crude and fuel, more than any other country," according to Seeking Alpha.As was noted here yesterday, Verizon Communications (NYSE:VZ) was slammed Thursday after UBS lowered its rating on the stock to "neutral" from "buy." That now looks like a prescient call because shares of Verizon and rival AT&T (NYSE:T) were drubbed Friday on reports that Amazon (NASDAQ:AMZN) could be looking to enter the wireless telecommunications business.Another potential area of concern amid the Mexico tariffs is medical device makers. While no Dow component is a dedicated medical device manufacturer, Johnson & Johnson (NYSE:JNJ) has a big footprint in this space.That industry "relies on Mexico for 15% of its imports and 7% of its exports," according to Barron's. The iShares U.S. Medical Devices ETF (NYSEARCA:IHI) traded lower today. Bottom Line on the Dow Jones TodayThe Dow Jones Industrial Average lost more than 5% this month, so the bottom line is May was a brutal month and investors are right to be glad it is in the books. However, if seasonal trends hold true to form, there could be June gloom.Over the past 20 years, the S&P 500 has averaged a June decline of 0.7%, making the sixth month of the year the second-worst month in which to be long stocks.In terms of sectors that historically perform well in June, it is, not surprisingly, defensive fare. Utilities and healthcare are usually the best-performing groups in the S&P 500 in June. Those are the only two sectors that average positive returns in the sixth month of the year.As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Monster Growth * Ranking the Top 10 Stock Buybacks of Last Year * 5 Stocks Under $10 With Big Upside Potential Compare Brokers The post Dow Jones Today: A Miserable May Ends in Miserable Fashion appeared first on InvestorPlace.
The healthcare space might have seen a sluggish year so far. But its valuation and near-term prospects make it a good space for investments right now.
While biotechs and pharmaceuticals are making breakthrough discoveries, makers of medical devices are innovating too, one reason iShares U.S. Medical Devices is now one of the best ETFs.