|Day's Range||1.0800 - 1.0800|
Investors usually embrace small-cap stocks for growth and over the course of that indulgence, they're often willing to sacrifice profitability to attain that growth. Profitable or not, small caps are riskier than larger companies, but if lack of profitability is added into the equation, than the risks exponentially increase. For investors looking to dial back that risk profile while adding an element of quality to small-cap investing, the WisdomTree U.S. SmallCap Fund (NYSE: EES) is an ETF that makes a lot of sense.
Target and Microsoft stock were early leaders and Herman Miller scored a breakout, while the S&P; 500 and Dow Jones today aimed to turn the week positive.
Thursday, investors can expect the weekly initial jobless claims figures, as well as existing home sales for the month of August.
The stock market closed mixed on Wednesday, despite the Federal Reserve's much-anticipated quarter-point cut in its benchmark fed funds rate.
The Dow Jones Industrial Average was slightly lower in the stock market today as the Fed kicked off its two-day policy meeting and oil prices plunged.
Where will we go next remains the question, with a lot of uncertainty in the air. Stocks could enter a holding pattern for a bit here as people assess what’s going to happen next in the Gulf and wait for the Fed’s decision on rates tomorrow afternoon. Volatility hasn’t really moved much since late yesterday, with the Cboe Volatility Index (VIX) just below 15.
Stocks slipped modestly yesterday to start the week after an attack on Saudi Arabia’s oil facilities over the weekend. Despite the new geopolitical risks, the benchmark S&P 500 and tech-heavy Nasdaq were down only 0.3% for the session. The closely-watched CBOE Volatility Index (VIX) was up nearly 7% yesterday on the modest losses for the overall market, but remains below the $15 level.
Investment funds focused on big companies cut their holdings of tech stocks last quarter, but their small-cap counterparts took a different approach. They held on in tech and industrial shares, while hanging back on health-care stocks.
Since Aug 31 of 2018, the small-cap Russell 2000 (RUT) index has fallen more than 9%, compared to a rise of 3.6% for the large-cap S&P 500 index (SPX) but in September, the Russell’s fortunes began to turn around, and there’s now reason for cautious optimism that a rally in smaller-company stocks is here to stay. Month-to-date, the Russell 2000 has risen 6.4%, while the S&P 500 has advanced 2.4%, as of Monday’s close. DeSanctis pointed to rising bond yields as evidence that the market believes the U.S. economy will avoid a recession next year, but also predicted that the Russell 2000 will benefit from a Federal Reserve interest rate cut for the second time this year at the conclusion of the central bank’s meeting Wednesday.
The U.S. economy may see a real lift-off in consumer prices due to higher energy prices, even if certain sectors stand to benefit greatly -- as might the trade deficit.
Major U.S. stock market indexes traded lower near midday Monday as the stock market tried to adjust to the weekend attack on Saudi Arabian oil facilities. Small caps in the Russell 2000 advanced 0.7%, but the major indexes remained in the red.
Outspoken former White House Communications Director Anthony Scaramucci claims the president is 'unhinged' and in 'steady decline.'
Monetary policy has been eased and forward guidance has been strengthened via an open-ended QE [quantitative easing] program. The market implications from today’s measure will be dominated by the trend in global growth, something out of the ECB’s control.
It wasn't necessarily an unlucky Friday the 13th on Wall Street, but it was lackluster and indexes closed with minor change and growth stocks lost more ground.
Until last week, small-cap stocks’ underperformance was a frequently cited reason for bearish equity market forecasts. The Russell 2000 (RUT) popped 8.8% after sitting at a six-month low just a couple weeks ago. From Sept. 9-11, the Russell 2000 recorded three consecutive daily gains of more than 1% each, a rare feat.
Guess we'll see, but there is no doubt, that with trade headlines swirling, a more aggressive (than I expected) ECB, and the Fed ready to step to the plate next week, all with markets teetering on, but not quite at what I see as technically over-bought conditions. On the other hand, trading volume was notably lower at both of New York's major exchanges despite the churn... in fact far lower than on more positive trading days earlier this week.
Still, we believe the energy sector is setting up another great trade opportunity for skilled technical traders. Watch how this sets up below $46 and watch for deeper price moves below $45. Once the momentum base is set up, the upside price move should be very clean and fairly quick.
The stock market battled as Trump delayed the tariff increases, and the European Central Bank cut interest rates for the first time since 2016.
The surprises included Oracle Corporation (NYSE: ORCL) announcing earnings a day early (see more below) and President Trump tweeting that new tariffs on China would be delayed two weeks in what he called a “gesture of goodwill.” Stock futures seemed to get a lift from the trade announcement, especially coming after yesterday’s news that China would exempt some U.S. products from its tariff list. In what had to be one of the more widely anticipated moves in recent history, the European Central Bank (ECB) probably surprised few if anyone today when it lowered its deposit rate by 10 basis points and announced new quantitative easing (QE).
The S&P 500 index (SPX) jumped to close just above 3,000 on Wednesday, its eighth gain in the last 10 sessions, and the Dow Jones Industrial Average (DJIA) rose for the sixth straight session to end solidly above 27,000. The Nasdaq Composite index (COMP) is less than 2% off its record peak, and the small-cap Russell 2000 index (RUT) and the bellwether Dow Jones Transportation Average (DJT) , which lagged the other averages, have rallied sharply in recent weeks. This comes amid worries about yield curve inversions, recession (60% of Americans think one’s coming in the next 12 months, according to the latest ABC News/Washington Post poll), trade tensions, negative interest rates in Europe and Japan, and slumping global economies.