|Bid||0.00 x 1300|
|Ask||0.00 x 1000|
|Day's Range||145.14 - 146.76|
|52 Week Range||125.81 - 173.39|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.25|
|Expense Ratio (net)||0.20%|
Small-cap stocks are off to their best start since 1987, with the iShares Russell 2000 Index (NYSE: IWM) up already 8 percent in 2019, said CNBC "Trading Nation" host Mike Santoli. Does this mean investors should be adding exposure to the small-cap group? Small-cap stocks were down 17 percent in the back half of 2018, while the S&P 500 index was down by just 7 percent, Strategic Wealth Partners' Mark Tepper said during the "Trading Nation" segment.
Small caps are making big moves. The Russell 2000 has gained more than 8 percent year to date — a far cry from its 2018 performance, when the index saw its worst annual loss since the financial crisis.
On Wednesday, Bespoke Investment Group put out a report saying that the S&P 500 is having a very rare comeback. After declining over 19% in the span of just three months, the S&P 500 has come roaring back and is now on pace for a 10% gain in just 10 trading days. Since World War II, there have only been 12 other declines of 15%+ within the span of three months that were followed immediately by a 10%+ gain in 10 trading days or less.
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. Despite worries about trade wars and an economic slowdown across the board, the U.S. job market is making great strides. In the last month of 2018, the U.S. economy added 312,000 jobs, nearly double the figure expected by analysts. The showing for November itself was revised up by 21,000 to 176,000. At the same time, hourly earnings increased by 0.4% in December on average compared with 0.3% expected by pundits. Such a rise in hourly earnings has not been seen since September. Meanwhile, the unemployment rate jumped from 3.7% to 3.9%, a sign the labor market is expanding and more people are joining the labor force. Amid market turbulence, Federal Reserve Chair Jerome Powell attempted to ease market concerns, saying he was aware of the risks stemmed from raising interest rates too quickly and was listening carefully to what the markets had to say. Stocks posted a strong rally this week. On Thursday, Powell spoke again, saying the Fed can be patient on monetary policy given the stable inflation. The Federal Reserve minutes revealed that policymakers have become more dovish, finally acknowledging the risks related to a slowdown in China, trade wars and political turbulence. U.S. non-manufacturing purchasing managers’ index (PMI) dropped dramatically in December, from 60.7 to 57.6, signaling a deteriorating sentiment. U.S. crude oil inventories declined by 1.7 million barrels in the week ended January 4, following two straight weeks of flat gains. Stockpiles have not seen a weekly rise since the end of November when they ended a ten-week streak of gains. U.K. economic output expanded 0.2% in November, beating expectations of 0.1%. The upbeat figure comes as the country still struggles to reach a Brexit solution, with the government and the Parliament at odds. An increasingly likely scenario is to push back the March 29 exit date to avoid chaos.
If economic growth sputters this year, investors may want to consider embracing large-cap exchange traded funds over small-cap equivalents. Last year, the large-cap blend iShares Russell 1000 ETF (NYSEArca: ...
Shares of Nike (NYSE:NKE) have done relatively well over the past three months. They're not up a casual 14% like Starbucks (NASDAQ:SBUX) over that time frame, but NKE stock has outpaced the broader stock market indices. Its 4% decline over the past 90 days looks pretty good compared to the 10.1% and 10.8% respective declines in the Dow Jones Industrial Average and S&P 500 index. But investors aren't interested in whether they can lose less money in Nike than in the Dow. Rather, they want to know if they can make money in Nike stock and whether it can continue its recent run higher. One of the more recent concerns has been China. Apple (NASDAQ:AAPL) recently updated investors with worse-than-expected guidance, blaming part of the slowdown on sluggish sales in China. Samsung (OTCMKTS:SSNLF) disappointed investors as well. While it's certainly something to take note of, I wouldn't use smartphone sales to put a warning sign on every company's back that has sales in China. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As pundit Felix Salmon wrote earlier this week: "Apple is not China". And to point a finer point on that, consider comments from Nike's CFO Andrew Campion, who told participants on the recent earnings call: "We have not seen any impact on our business from some of the U.S.-China dynamics that we're all reading about." To be sure, China's economy is stumbling a bit at the moment, and it's a question of how long it will take to regain its balance. For Nike though, it's going pretty well. When the company reported earnings in December, sales in China were up 31% year-over-year over the past three months and 25% over the past six months. Earnings before interest and taxes were up 48% and 38% over the same periods, respectively. All said, it was a pretty good quarter as Nike beat on earnings and revenue expectations. ### Valuing Nike Stock The company's strong earnings gave investors more confidence in the name. However, should China trade negotiations sour or if the country's economy slows further, investors will likely sell Nike stock first and ask questions later. Whether that's right or wrong ultimately depends on the investor. * 9 A-Rated Safety Stocks for a Grossly Oversold Market Short-term traders won't likely care that only 15% of Nike's revenue comes from China. However, long-term investors will very much consider it a buying opportunity if the stock is hammered on the rationale that Nike is done for in the long term if sales in China slip. As it stands, we have a very consistent company with Nike. Analysts expect earnings to grow 7.7% this year (fiscal 2019) and next year. However, on the earnings front, estimates call for 10.5% growth this year and 18.9% growth next year. Not only does that suggest margins are expanding, but it means the growth rate of that expansion should increase over the next four to six quarters. That's highly encouraging to investors, even as Nike stock trades at about 28 times this year's earnings estimates. With solid inventory management, improving margins, predictable growth and a burgoening direct-to-consumer business, Nike stock looks to be in good hands. But what does the stock chart say? ### Trading NKE Stock Price Click to Enlarge We've seen a quick 15% rally off the Christmas Eve lows. While that's a big move, it's not all that overenthusiastic. Consider that the Russell 2000 ETF (NYSEARCA:IWM) is up about 13% in the same period, while names like Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX) are up almost 30% and 40%, respectively. * The 7 Best Stocks in the Entrepreneur Index So NKE stock price rallying 15% isn't absurd. Still, a pullback and/or some consolidation wouldn't be unhealthy. When a stock goes too far, too fast, it just makes the pullback all the more painful. In other words, let's get it out of the way. We saw Nike stock pullback hard into earnings on Dec. 20, then rally after the print. It then gave back its gains in the ensuing sessions. When it stalled out, it did so at the 50-day and 200-day moving averages. This is highlighted on the chart with a purple arrow. Just recently though, NKE stock pushed through the 200-day. As a result, I would love to see Nike stock pullback and find support near the 200-day, between $74 and $75. If so, I think it can give NKE the energy it will need to push through $78, a level that's been resistance over the last three months. If it can get through, NKE stock will have the opportunity to make new all-time highs. Let's watch this one going forward, particularly if the overall markets cooperate. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long SBUX, AAPL and AMZN. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy Down 20% in December * 5 Chinese Stocks to Avoid Now (But Buy Later) * 3 Big Gainers That Easily Could Be the Best Stocks to Buy Compare Brokers The post Will Nike Stock Lace Up a Rally to All-Time Highs? appeared first on InvestorPlace.
After a monstrous rally on Friday and a continuation on Monday, the markets are finally taking a pause on Tuesday. That's got investors wondering, are stocks consolidating before another rally or are we in the midst of a dead cat bounce? We'll try to navigate this tricky landscape as best we can as we eye our top stock trades for Wednesday. ### Russell 2000 ETF (IWM) Click to Enlarge One reason this market is tricky? Because a few weeks ago, market participants were under the belief that the Federal Reserve would continue hiking interest rates at a time where the yield curve was about to invert and the economy would eventually tumble into a recession. InvestorPlace - Stock Market News, Stock Advice & Trading Tips After printing a monstrous jobs report on Friday and after the Fed came out with a more dovish tone on the same day, investors are rethinking their outlook for the U.S. After a big rally in stocks though, many names are coming into key levels as we're only about a week and a half away from earnings. Then there's President Trump's speech on Tuesday night regarding "the wall." Like I said, tough sledding. The Russell 2000 ETF (NYSEARCA:IWM) has been one of the leaders when it comes to market direction. Meaning its direction has been the early tell on what the overall market is doing. Lately, it's been strong and that's a good sign for bulls. However, it's coming into a big-time prior support level now. $145 was a key level through 2018. Some may say that the February and April bounces were a result of the 200-day moving average. I would say that it was likely that both levels played a role. * The 7 Best Stocks in the Entrepreneur Index In any regard, the IWM has rallied eight of the last nine sessions while rallying about 12.5% in that time. To see $145 and the 50-day moving average act as resistance would come as little surprise at this point. If it does, I would love to see the 21-day moving average act as support. ### Union Pacific (UNP) Click to Enlarge Up over 8.5% on Tuesday, Union Pacific (NYSE:UNP) is making waves after announcing a new COO. After the stock's massive gap-up, it leaves traders who weren't in the trade in a tough spot. Do you chase up here or take a pass? I would love to see a $5 pullback into the mid-$140s. UNP has a chance to find support from the 50-day and 200-day moving averages down near this level. On the upside, it could run into the backside of a few prior uptrend support lines between $150 and $155. Ultimately though, I'm more interested in how UNP handles $157.50. ### Salesforce (CRM) Click to Enlarge Salesforce (NYSE:CRM) has been bouncing back with a vengeance and bulls sure are happy to see it. While CRM has been extra volatile, it's hard to ignore a best-in-breed cloud play. I'm not a big head-and-shoulders guy, but this one has similar makings of a bullish inverse head-and-shoulders setup. Although I would feel better about a healthy pullback down to the $135 to $138 area before recharging higher, the $147 level is proving it will be pivotal. A push through the "neckline" could spark a breakout rally. Considering the last few months though, I would be more inclined to take profits in CRM and wait for a pullback than bank on a breakout. ### Tilray (TLRY) Click to Enlarge Shares of Tilray (NASDAQ:TLRY) had been stuck in a big downtrend since September. All of its large rallies were met with sellers at downtrend resistance (black line), while buyers have buoyed the stock near downtrend support (blue line). Jumping 12.5% on Tuesday, the stock is popping over downtrend resistance for the first time in months. It's also over the 21-day moving average. Bulls can use a stop-loss at ~$75 and target the $95 to $100 range. ### Amazon (AMZN) Click to Enlarge We flagged this one coming into the new year, along with the rest of FAANG. The chart for Amazon (NASDAQ:AMZN) is practically identical from that article. After going from ~$1,300 to $1,650 in just a few trading sessions, I am not a buyer of AMZN stock up 27%. If downtrend resistance doesn't slow AMZN, I expect the 200-day moving average to slow its roll. So where will it pullback to? That's a tough question because it depends on what the overall market is doing. I would love to see $1,540 to $1,600 hold up as support, but that represents a decline of just 3% to 6%. In a market like this, we can see that in just a day. But where to buy Amazon isn't my main concern, it's not buying it at this point. Wait for a better setup before chasing Amazon $350 off the low and into resistance. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell was long AMZN and CRM. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy Down 20% in December * 5 Chinese Stocks to Avoid Now (But Buy Later) * 3 Big Gainers That Easily Could Be the Best Stocks to Buy Compare Brokers The post 5 Top Stocks to Trade Wednesday: Where to Buy Amazon, Tilray appeared first on InvestorPlace.
Technically speaking, the U.S. benchmarks’ most firmly-grounded rally attempt since October has reached its first significant resistance, writes Michael Ashbaugh.
While the indices have gone from oversold to overbought quite quickly, the big positive for market players is that the action is shifting form a focus on the indices to individual stocks. What I am watching for as we move into earnings season is more focus on stock picking. It is important to note that despite the huge moves since December 24, only 35 stocks hit new 12-month highs today.
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.
The "Options Action" traders share three options trading strategies to kick off the week. Mike Khouw recommends a call spread in Disney DIS . Carter Worth recommends the Russell 2000 small-cap ETF IWM .
Would you be prepared if the Dow Jones Industrial Average fell another 4,000-plus points? The Dow has fallen more than 4,000 points from its high this year — all of it in the fourth quarter. In mid-October I suggested that investors be prepared for a sudden downdraft, asking in a column “Would you be prepared if the Dow Jones Industrial Average were to fall 5,700 points?” I chose that number because the Dow fell 23% on Black Monday in October 1987, equivalent to about 5,700 points today.
Honing in on dollar volume ETFs will reveal the true picture of liquidity. We have highlighted 10 ETFs that have seen higher dollar volume this year.
With the way the stock market is trading, you would think we're on the precipice of a second financial crisis. As of Christmas Day, the S&P 500 was down 14.8% for the month, wedged between the Nasdaq's 15.5% beating and the Dow's 14.7% fall. It's been a horrendous month in a horrible quarter, featuring the worst Christmas Eve trading session ever.
The central bank chairman is administering regular doses of interest-rate increases, ultimately helping the stock market.
Many market players were optimist this morning that a dovish Fed combined with an oversold market and positive seasonality would help to deliver a positive finish to the year. The market wanted another dose of lower interest rates. Both the market and President Trump want Powell to address stock prices and not some vague worries about being behind the curve when it comes to inflation concerns.
The VIX shows that many sophisticated investors appear to be positioning for a rally in the short term.