166.50 -2.10 (-1.25%)
Pre-Market: 4:35AM EDT
|Bid||166.52 x 1000|
|Ask||166.66 x 1000|
|Day's Range||166.73 - 168.61|
|52 Week Range||134.12 - 168.61|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.20%|
Yahoo Finance's Alexis Christoforous and Jared Blikre break down the latest market action as President Trump and Kim Jong Un prepare to meet in Singapore to discuss denuclearization of the peninsula.
Yahoo Finance's Alexis Christoforous and Jared Blikre break down the latest market action.
Yahoo Finance's Alexis Christoforous and Jared Blikre break down the latest market action after the May Challenger Job Cuts, weekly Jobless Claims and April Personal Income and Outlays reports are released.
Smaller company stocks are typically seen as more risky when compared to their larger peers, but more recently, small-cap stocks and related ETFs are exhibiting volatility at record lows relative to large-caps. In a small cap-led US equity space, the Russell 2000 Index has increased 10.3% relative to a 5.0% gain for the US large cap Russell 1000 Index so far this year. Meanwhile, the year-to-date volatility differential between small and large cap US stocks is at an all-time low, according to new research from Cboe Global Markets and FTSE Russell.
According to the latest survey from the American Association of Individual Investors (AAI), the bullish percent rose 5.8 points to 44.8%, the highest reading since the February 15 reading at 48.5%. From the January 2016 low to the January 2018 high, EEM gained 96%.
Traders can expect more volatility this week following President Trump's tariffs on Chinese goods and the strengthening of the U.S. dollar. President Trump announced a 25 percent tariff on $50 billion worth of Chinese goods that contain "industrially significant technologies" last Friday, which many experts believe could mark the beginning of a trade war between the U.S. and China. The White House indicated that it would impose tariffs on aerospace, robotics and machinery in response to the "unfair practices related to the acquisition of American intellectual property and technology." China has threatened to retaliate with its own tariffs on soybeans, meat, whiskey, airplanes and cars.
A long time ago, in a far, far away place, some of us used to train wearing ankle weights. This type of resistance training, once thought to be a good idea was eventually abandoned by those trying to improve both strength and stamina as it became apparent that adding unnatural weight to one's stride below the knee caused injury. As you rip that ugly melon cradling your intellectual capacity away from that warm pillow on Friday morning, you'll notice a marketplace that seems to be trying to run while wearing ankle weights.
The benefit of chart reading -- aka technical analysis -- is the ability clearly identify trend and to locate where probable support and resistance levels may be lurking. Here's the hourly chart where the Sunday night/Monday morning plunge is most apparent: Bitcoin chart, hourly. The previous week's 7400 support level -- where buyers had shown up and stopped a drop -- got taken out and then it just kept going.
While digital currencies tend to dominate the headlines for their flashy, highly volatile price antics, many investors have turned their attention to exchange-traded funds (ETFs). Over the past several years, ETFs have grown at an astonishing pace. For the time being, ETFs have seen years with consecutive months of inflows, while the percentage of investors owning ETFs remains low enough that analysts predict steady growth for the immediate and foreseeable future.
Smaller stocks and corresponding exchange traded funds have recently been enjoying renewed fanfare and rightfully so. Year-to-date, the iShares Russell 2000 ETF (NYSE: IWM) is up 9.6 percent, or double the gains of the large-cap S&P 500. Smaller small-caps, or micro-caps, are performing even better.
The U.S. small-cap space has exhibited an impressive rally this year with the Russell 2000, posting its 18th record close for the year on Jun 6. Small-cap fund iShares Russell 2000 Index ETF (NYSEARCA:IWM) is up 5.2% in the past one month and 17.9% in the last one year. So far this year, IWM has advanced 7.9% while the S&P 500 is up 2.8% (as of Jun 7, 2018).
There have already been contentious tweets between President Trump and the leaders of France and Canada. Trump continues to stress that trade treaties have been unfair to the United States for many years and that he intends to see them changed. Apple typically releases its new phones during that period and this news is causing a reaction.
History shows us that 80% of pullbacks and corrections do not turn into a bear market, here are two ways successful investors handle volatility in the stock market. Successful investors know that volatility is part of the process on Wall Street. Instead of fearing volatility, they have learned to plan for it and actually embrace it.
The iShares Russell 2000 ETF (IWM) , which tracks the benchmark Russell 2000 Index, is up more than 6% over the past month, outperforming major large-cap indexes along the way. Small-caps have trailed large-caps for a couple of years now, prompting some market participants to say smaller stocks are playing catch-up and could enter a long period of out-performance. The Russell 2000 (RUT) “as I have observed many times, is an index that tends to pivot both short-term and long-term at both half-century and century marks.
During last week's trading range action, I commented how individual stock picking was outperforming market timing. It shifts the nature of the action and creates the illusion that there is more strength than there was last week because it is now the higher visibility and more well known names that are leading. Both names are the sort of 'go to' stocks that do well in this sort of environment.
A host of Trump’s anti-trade policies has been playing foul in the stock market, leading to increased market uncertainty and trade tensions between the United States and countries around the world. After both the United States and China reached an agreement and vowed not to launch a trade war against each other, Trump’s announcement to impose a hefty 25% tariff on $50 billion worth of Chinese goods escalated tensions between the two. Trump also plans to restrict Chinese investment in U.S. companies and limit the number of goods that these can sell to China.
Both the Russell 2000 and S&P 600 indices hit all-time highs last week as investors continued to jump on the small-cap bandwagon. Can anything stop small-cap stocks from moving higher over the remainder of 2018? A recession would halt them in their tracks, but barring the unthinkable, you might want to consider selling some of your large-cap holdings for small-cap stocks or exchange-traded funds because they’re hotter than a pistol.
Crude oil has again taken the headlines this week along with the ongoing political debacle in Italy. The black commodity started to reverse gains after Saudi Arabia and Russia hinted that output could be boosted to avoid a supply shock. Regional banks trended second after U.S. Congress rolled back legislation aimed to prevent a fresh financial crisis. Small-Cap Index Russell 2000 felt like a safe haven amid the market turmoil and was third in the list. Emerging markets equities and emerging markets bonds close the list. Check out our previous trends edition at Trending: Strong Dollar Plunges Argentina Into Crisis, Again
The bears are arguing that a looming trade war will be a negative that sends this market back down. The European Union will retaliate with tariffs on a wide variety goods such as Levi Jeans and Jack Daniel's whiskey. The Italian bond crises seems to have been forgotten and there isn't any panic over the prospects of a trade war.
Whatever worries there were Tuesday they have now been forgotten. One of these days there is going to be some downside momentum generated by a crisis like Italian bonds but Wednesday is not the day. Market players have been conditioned to buy any and all dips regardless of what the headlines might be.