|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||281.45 - 282.43|
|52 Week Range||243.45 - 288.69|
|PE Ratio (TTM)||84.91|
|Expense Ratio (net)||0.04%|
Johnson & Johnson (JNJ) announced its Q2 2018 earnings results on July 17. JNJ stock rose ~3.5% on the day and ended at a closing price of $129.12. On July 16, the stock closed at $124.69.
Gold prices (IAU) have been on a losing spree since mid-April due to the US dollar’s strength and diverging monetary policies in the United States (IVV) and the rest of the world. During the congressional testimony, Fed Chair Jerome Powell gave an upbeat assessment of the US (VOO) economy. The assets are attractive when interest rates (TLT) are high because gold doesn’t generate any income.
A net -11% of respondents in the BAML (Bank of America Merrill Lynch) July survey expect faster economic growth over the next 12 months, which is the lowest since February 2016. At the start of 2018, a net 40% of polled fund managers expected faster economic growth in the next year. While it is very difficult to pinpoint a turning point in the economic cycle, the consensus is generally growing that we are in the late stage of the economic cycle, which typically precedes a recession.
A version of this article was published in the June 2018 issue of Morningstar ETFInvestor. Download a complimentary copy of Morningstar ETFInvestor by visiting the website. As of the end of May 2018, there were three dozen China-focused stock exchange-traded funds, no two alike.
Stocks across the globe have suffered their worst first half in a year since 2010, wiping out trillions of dollars from the MSCI's 47-country world index. Inside the hot and flop ETFs in terms of fund flows.
BlackRock, Inc. ( BLK) was able to supplant Vanguard in terms of assets flowing into U.S. mutual funds and exchange-traded funds (ETFs) for the month of May, marking the second month in a row that BlackRock has exceeded the inflows of its rival. According to data from Morningstar, May asset flows to passive U.S. equity mutual funds and ETFs were $29.1 billion compared with $18.2 billion in April. Meanwhile, Morningstar said that actively managed funds in the U.S. pulled in $8.4 billion in May compared with $11.4 billion in April.
After a brief lull the previous week, ETF inflows rebounded sharply last week due to the recovery in broader benchmark indices. According to FactSet data, US-listed ETFs collected $15.3 billion during the week, which takes the inflows to $135.1 billion year-to-date. While investors are positive on US equity (JPM) (GS) (BAC), international equity still wasn’t popular and saw outflows of $2.1 billion. US fixed-income ETFs added $2.8 billion, while international fixed-income saw net redemptions of $137 million.
The markets responded negatively to the latest news of U.S. President Donald trump imposing a 25 percent tariff on up to $50 billion in Chinese goods by plunging over 200 points at the open. The measures by the Trump administration will affect Chinese goods "that contain industrially significant technologies" and that the action comes "in light of China's theft of intellectual property and technology and its other unfair trade practices," said Trump in a statement. In addition, Trump announced that the imposition of further tariffs could be on the horizon should China retaliate with tariffs of their own on American products, such as crops.
The Federal Open Market Committee (or FOMC) is due to meet for a two-day meeting starting today. The Fed is widely expected to increase interest rates by a quarter percentage point. This would be the seventh rate hike since the current tightening cycle began in December 2015 and the second rate hike in 2018.
There are clearly reasons to continue giving this bull market the benefit of doubt, but the risks are rising and that means a defensive approach is warranted. While we won’t rule out new bull market highs as the year progresses, one should be cautious in committing new or additional money to stocks, particularly over the near-term. Over the 58 years since 1960, the S&P 500 has averaged a gain of 6.8% for the winter period, while the summer average is only 1.0%.
The Conference Board website explains that the consumer confidence index (or CCI) is a barometer of the health of the US economy (VOO) from the perspective of the consumer. The consumer confidence survey compiles consumer perceptions of employment and business conditions and their expectations for the next six months. The latest report indicated that the consumer confidence index has increased to 128.0 in May as compared to a downward revised April reading of 125.6.
Last week, lower volatility helped investors add a substantial amount to US-listed ETFs. According to FactSet, investors poured $8.5 billion into ETFs last week, which increased the YTD (year-to-date) inflows to $117 billion. US equity (MS) (GS) (C) continued to be the most popular asset class with investors. US equity saw an addition of $6.17 billion, while international equity lost $243.5 billion. US fixed-income ETFs saw a net addition of $2.24 billion amid a decline in the US ten-year Treasury yield from 3.1% the previous week to 2.9% last week. ...
Last week (ended May 25), the S&P 500 appreciated by 0.31% and closed at 2,721.3, helped primarily by reduced odds of a fourth rate hike this year. The US-North Korea summit took a new turn when Donald Trump canceled the summit, leading to some risk-off trading. However, the losses were limited for the S&P 500.
Will China suddenly increase the imports of certain products? If it does, will there be sufficient demand for these products in China, or will China cut the imports of such products from its other trading partners?
This came as a surprise to the markets, as the president’s comments stood in stark contrast to those made by the US Treasury secretary, Steve Mnuchin, who is heading the negotiations from the US side. Mnuchin said that the United States and China (MCHI) were close to a deal after a joint statement from both the sides was released on May 19, and the stock markets (VOO) rallied at the beginning of this week as US-China trade tensions seemed to be cooling off. Why was Trump unhappy?
The S&P 500 Index (SPY) continued its negative run with another lower close in April. The Conference Board Leading Economic Index (or LEI) uses the performance of the S&P 500 Index (VOO) as one of the constituents of the LEI. The inclusion of the S&P 500 performance in the Conference Board Leading Economic Index (or LEI) is supported by econometric evidence, as some economists would argue that the stock markets are not a true reflection of the state of the economy.