|Bid||0.00 x 800|
|Ask||0.00 x 1300|
|Day's Range||279.21 - 279.36|
|52 Week Range||254.77 - 296.69|
|PE Ratio (TTM)||84.20|
|Beta (3Y Monthly)||1.00|
|Expense Ratio (net)||0.04%|
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.
Along with volumes, realized revenues are among the most important components that drive a commodity company’s top line. Realized prices also help assess market sentiment, as they derive from existing market prices.
Are you wondering if the S&P 500 is a good place to park your investment dollars? While last week's selloff might have unnerved you, no less a sage than Warren Buffett says that the best retirement plan is to put 10% of your funds in short-term government bonds and 90% in an S&P 500-tracking exchange-traded fund (ETF). The S&P 500 is perhaps the best depiction of the U.S. economy, covering all the main sectors and representing roughly 80% of the nation's market cap.
Does the Sell-Off Imply Market Repositioning for Lower Growth? One of the major market worries at the core of the current market sell-off is the coming earnings deceleration. The stock market rally in 2018 has been fueled in part by the tax reform windfall.
For the last few days, the bond markets have seen sell-offs due to stronger-than-expected economic data and hawkish comments from the Federal Reserve. On October 3, Fed chair Jerome Powell said, “We may go past neutral, but we’re a long way from neutral at this point, probably.” These comments likely mean that more rate hikes are ahead. Higher yields are usually negative for equities because companies’ borrowing costs increase as the risk-free rate goes up. Higher rates might deter some investment and increase the cost of borrowing, which could impact companies’ earnings and stock prices.
The demand for gold in India (INDA) was lukewarm in the first half of the year, mainly due to stronger equity markets and higher gold prices measured in rupees. This event caused local gold prices to rise, even with the price decline measured in US dollars. According to the latest Assocham-World Gold Council (or WGC) report, the gold demand in India is likely to surge 25% in the second half due to the improved purchasing power of farmers.
The trade balance is the difference between a country’s monetary value of exports and imports. A positive balance is known as a trade surplus where exports are greater than imports. A negative balance is known as a trade deficit.
Bank of America (or BofA) contends that gold prices (GLD) should surge over the next year as US budget deficit and trade war concerns start to have an impact on the US economy (SPY) (IVV). Bank of America expects gold prices (IAU) to average $1,350 per ounce in 2019 as the effect of US tax reforms wears off.
Biogen’s (BIIB) net revenues grew from $3.1 billion in the second quarter of 2017 to $3.4 billion in the second quarter, which reflected an ~9.0% YoY (year-over-year) growth and 7.0% growth sequentially. Wall Street analysts expect Biogen to generate revenues of $3.3 billion in the third quarter.
Will the S&P 500 and ETFs tracking the index find support and rebound off the 50-day this week? Or will they slice through the line?
As we’ve learned, stocks saw a sell-off in February after stronger-than-expected wage growth data. If today’s wage growth comes in on the upside, the markets could again go into panic mode. In a tweet, Bill Gross, the “bond king” and manager of Janus Henderson Global Unconstrained Bond Fund, mentioned the pricing out of European and Japanese buyers of Treasuries (BND) as the main reason for the bond sell-off.
The unemployment rate for August was unchanged at 3.9%, which was higher than economists’ expectations of 3.8%. The Fed expects unemployment of 3.5% by the end of 2018. According to the consensus, economists expect the unemployment rate to fall to 3.8% in September from 3.9% in August.
Economists expect the US economy to add 180,000 jobs in September—below the 201,000 job additions reported in August and the average monthly gain of 196,000 over the previous 12 months. Economists’ estimate for job additions could have an upside, according to data from ADP and Moody’s Analytics. Based on the data released on October 3, private companies added 230,000 more jobs in September—much higher than the expectations of 184,000 jobs. The job additions were the highest level since 241,000 job additions in February.
Cleveland-Cliffs (CLF) announced the closure of the sale of its Asia-Pacific iron ore assets to Mineral Resources on August 28. Through this final step, its direct exposure to the volatile seaborne iron ore market is over. The company’s exit from the direct seaborne iron ore business is expected to reduce its stock’s volatility. The company is primarily a US-based (DIA)(IVV) iron ore pellet producer and should be valued as such. However, the seaborne iron ore prices impact Cleveland-Cliffs indirectly.
Steel prices are a major driver of steelmakers’ earnings and revenues. According to S&P Global Platts, US (SPY)(IVV) hot rolled coil (or HRC) prices have fallen 2.7% from their July average to $893 per short ton. While prices have corrected recently, the overall momentum in steel prices has remained strong.
Federal Reserve Chairman Jerome Powell is making investors jittery, according to JPMorgan Chase & Co. ( JPM). In a research note, reported on by CNBC and MarketWatch, analysts claimed that the stock market suffered losses of around $1.5 trillion in market cap following speeches from the Fed’s top boss. Powell has hosted three news conferences after Federal Open Market Committee meetings since taking over as chairman in February.
If you’re new to investing, one of the best ways you can dip your toe into the water is to buy a mutual fund or exchange-traded fund (ETF) that invests in all 505 of the S&P 500 stocks. Your first question: What is the S&P 500? Your second question: How come there are 505 stocks, not 500? Both are relatively painless questions to answer. First, the S&P 500 represents 500 of the largest and most established companies listed on a U.S. stock exchange.
Cleveland-Cliffs’ (CLF) customers, including AK Steel (AKS) and ArcelorMittal, are directly affected by steel imports into the United States. As a result, investors should track this information to get a sense of CLF’s shipment outlook.
This article is a part of InvestorPlace’s Best ETFs for 2018 contest. Kent Thune’s pick for the contest is the Energy Select Sector SPDR (NYSEARCA:XLE). The Energy Select Sector SPDR (NYSEARCA:XLE) ended the third quarter on a high note as energy finished the final week of September as the leading sector, thanks in part to rising oil and gas prices.
The Federal Reserve’s assessment of the US economy is still strong. Yesterday, it raised its outlook for US economic growth for 2018 from 2.8% to 3.1% and for 2019 from 2.4% to 2.5%. However, there are several risks to the US economy, including trade wars and the emerging markets (EEM) crisis, which some believe could derail economic expansion.
A yield curve tracks Treasury securities’ yields that are maturing at different times. The yield curve mainly reflects bond market investors’ expectations of the Fed’s actions and future economic conditions (SPY) (IVV). Last month, the difference between ten-year and two-year Treasury yields hit 19.75 basis points—the lowest level since August 2007.
The debate over active vs passive investing is as old as investing itself. Should you invest in actively-managed funds or should you buy index funds? The active vs passive investing debate often centers around the history of performance when comparing actively-managed funds with passively-managed funds.