|Bid||279.09 x 3200|
|Ask||279.10 x 2900|
|Day's Range||278.41 - 279.21|
|52 Week Range||241.83 - 286.63|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.09%|
The S&P 500 Index rose ~0.11% to 2,801.31 on July 13—the highest closing since February 1. The expectation of strong second-quarter earnings results has been driving the S&P 500. However, the escalating trade war between the US and China has limited the upside for the S&P 500. Six out of the 11 key sectors in the S&P 500 advanced on July 13.
The biggest ETFs have been getting all the attention over the years as investors grouped into these traditional market capitalization-weighted plays, but the ones tracking an equal-weight indexing methodology have been quietly outperforming all along. The biggest and most popular ETFs on the market largely include those that track traditional market capitalization-weighting methodologies, or they weight component stocks based on the companies' market capitalization, so bigger companies have a greater say in the direction of the overall ETF's performance. In contrast, an equal-weighted indexing, like its naming suggests, would equally distribute the weight among all company holdings within the index, regardless of the market cap of each company.
The summer of 2018 should've been the most bullish period for crude in several years, but both Brent and West Texas Intermediate have taken a beating on mounting concerns about what could disrupt equilibrium. Energy stocks have also taken a hit with the Energy Select Sector SPDR (XLE) notching a 1.2% decline. The negative implications for crude prices are hard to ignore.
Cleveland-Cliffs’ (CLF) new management has always been keen on exiting the volatile seaborne iron ore business as soon as possible, and an announcement finally came on April 6 that it expected to close its Australian operations by June 30. The increasing discounts for its lower-content ore and the quality of its remaining iron ore reserves were the main factors driving this decision. On June 12, CLF announced that it had agreed to sell the business to Australian mining services company Mineral Resources for an undisclosed amount.
While slightly lowering their price targets for Applied Materials Inc. ( AMAT) and Lam Research Corp. ( LRCX), Morgan Stanley analysts Joseph Moore and Craig Hettenbach are still overweight on the two chip-equipment makers and see at least 25% for both. Whether this is due to technical manufacturing issues or just Samsung looking to manage its supply in order to maintain higher prices, the result is the same—lower spending on WFE.
Key index funds were mixed Friday as the Dow industrials led but the tech-heavy Nasdaq composite lagged. Bank ETFs were lower.
A federal grand jury led by special counsel Robert Mueller has indicted 12 Russian military officers with hacking the Democratic National Committee and Hillary Clinton’s campaign networks with the intent to interfere with the 2016 presidential election. Deputy Attorney General Rod Rosenstein said President Donald Trump was briefed on the allegations earlier in the week. Specifically, the indictments don't appear to impact his upcoming meeting with Russian President Vladimir Putin, who he said he will “absolutely firmly” ask about the allegations.
With an end-of-year target level of 2,850 for the S&P 500, Goldman does not see much upside left for the latter half of the year. In the sphere of U.S. politics, worries over senior staff turnover, the possibility of Democrats re-taking the House, and the ongoing Special Counsel investigation have all raised policy uncertainty.
Micro-cap stocks and the related exchange traded funds are delivering some impressive returns, so perhaps it is time for some additions to the fray. “DWMC seeks long-term capital appreciation by investing in exchange-listed micro-cap equities with sufficient liquidity that have a market capitalization of less than $1 billion,” according to a statement from Maryland-based AdvisorShares.
In the preceding parts of this series, we discussed how gold prices have remained weaker despite escalating trade war fears and geopolitical tensions. Many of these risks stem from the ongoing trade spats, which would create inflationary (TIP) pressures in the economy apart from uncertainty. Gold (GLD) is often seen as an inflation hedge.
After a more than six-fold gain in five years many on Wall Street are wondering just how much further Amazon.com Inc. ( AMZN) can rise. Revenues from advertising, cloud computing and the e-commerce giant’s Prime service could push the stock’s price to as high as $2,600, implying a 45% upside from Thursday’s close, according to Barron’s. While Morgan Stanley’s price target of $1,700 is below Amazon’s current stock price, the bank’s analysts do see a way in which that price could hit the significantly more optimistic forecast of $2,600.
After a bumpy ride in the first half of the year, global stocks are bouncing back, with iShares MSCI ACWI Index Fund (NASDAQ:ACWI), which targets the global stock market, up 1% last week. The U.S. stocks, as indicated by SPDR S&P 500 ETF (NYSEARCA:SPY), which tracks the S&P 500 index, is up 1.5% to start the second half versus 0.6% gain for Vanguard FTSE All-World ex-US ETF (NYSEARCA:VEU), which targets the international equity market excluding the United States.Source: Investment Zen via Flickr (Modified)
Each day, Benzinga takes a look back at a notable market-related moment that happened on this date. What Happened On July 12, 1909, Congress approved the 16th Amendment empowering the legislature to charge ...
The S&P 500 Index fell ~0.7% to 2,774.02 on July 11. On the same day, the US government threatened to impose new tariffs on goods worth $200 billion imported from China. The escalating trade war between the US and China pressured the S&P 500 the same day. China warned the US and said that it would take strict countermeasures. Ten out of the 11 key sectors in the S&P 500 dropped on July 11.
Rising prices for things like gasoline and housing are eating into U.S. consumers' wage increases, a potential threat to the U.S. expansion and the stock market. The Labor Department’s consumer-price index rose 2.9% from a year earlier in June, data showed Thursday. Economists fear the widening gap between inflation and wage growth will dampen consumer spending, which drives two thirds of the U.S. economy.
As we’ve discussed previously in this series, the escalating trade tensions haven’t been able to support gold much in 2018 mainly due to the simultaneous appreciation in the US dollar (USDU), which has capped gold’s gains. While the index for current conditions came in as expected, the sentiment over future business conditions and income prospects declined. Investors should note that consumer spending (XLY) constitutes more than two-thirds of the US economy.
The US non-farm payroll figure for June improved at a marginally slower rate than in May. In June, 213,000 jobs were added compared to 244,000 in May. The data for June, however, beat the market expectation of 195,000 job additions. The broader market S&P 500 Index (SPY), the Dow Jones Industrial Average Index (DIA), and the NASDAQ Composite Index (QQQ) rose 0.85%, 0.41%, and 1.34%, respectively, on Friday, July 6, after the announcement of the non-farm payroll report. The US unemployment rate threw a surprise for June as it grew to 4.0% from 3.8% a month earlier.