|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||265.61 - 269.05|
|52 Week Range||234.56 - 286.58|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.09%|
While there are many complementary explanations, the most heated arguments center on the role of monetary policy. Careful analysis suggests John Williams, the incoming president of the Federal Reserve Bank of New York, may agree with those who blame excessively low interest rates for the boom and bust. In response to the triple shocks of the tech bust, the Sept. 11 terrorist attacks, and the wave of corporate defaults in the early 2000s, Fed Chairman Alan Greenspan and the majority of his colleagues pushed the policy interest rate down to 1%.
What happened to the synchronized global upswing? In just a few short (but memorable) months, the economic outlook has soured. Is this the end of the expansion, or typical late-cycle behavior?
Procter & Gamble (PG) reported weak sales and earnings growth in fiscal 3Q18 (period ended March 31, 2018) on April 19, 2018. The company’s stock fell 4.2% after the release and closed at $74.95. Procter & Gamble’s soft organic sales and tepid margin performance sent the stocks of other major CPG (consumer packaged goods) companies down as investors fear that price competition, business reinvestment needs, and inflation in commodities and transportation costs are likely to dent the financials of these companies.
Wells Fargo, Steve Madden, Facebook, Apple, AT&T and Time Warner are the companies to watch.
Larry Fink, the legendary investor and chair of BlackRock (BLK), said that investors should stay invested in the equity market rather than trying to time the market.
Between April 12 and April 19, 2018, US equity indexes’ correlations with US crude oil June futures were as follows: the S&P 500 Index (SPY) at -23.9% the S&P Mid-Cap 400 Index (IVOO) at -25.5% the Dow Jones Industrial Average Index (DIA) at -45.7%
Between April 12 and April 19, 2018, energy subsector ETFs’ correlations with US crude oil June futures were as follows: the VanEck Vectors Oil Services ETF (OIH): 91.4% the SPDR S&P Oil & Gas Exploration & Production ETF (XOP): 79.6% the Energy Select Sector SPDR ETF (XLE): 49.6% the Alerian MLP ETF (AMLP): -59.3%
Bolstered by a surge in global crude prices, oil and gas companies have taken over as the U.S. stock market's priciest segment. As The Wall Street Journal’s Morning MoneyBeat newsletter noted on Friday, energy stocks have surged lately alongside rising crude prices. Energy companies, whose share prices were depressed by a multi-year slide in oil prices, are now among the market’s best performers as investors anticipate higher oil prices will bolster their revenue and profits.
Following a strong performance last week, the S&P 500 started this week with strong sentiment and advanced in the first three trading days. However, the S&P 500 opened lower on April 19 and declined as the day progressed. Nine out of 11 major S&P 500 sectors declined on Thursday. Weakness in the consumer staples, real estate, and IT sectors weighed on the market. Strength in the financials sector limited the market losses.
In the previous part of this series, we saw that Morgan Stanley (MS) believes the bull market might end soon and the earnings growth of the S&P 500 Index (SPY) is gradually reaching its peak. Tax reform played an important role in market movement. Although many market participants expect a higher infrastructure spending bill and defense spending to boost the equity markets, Morgan Stanley believes the boost could be short-term.
T-Mobile (TMUS), the third-largest wireless carrier in the United States (SPY), continues to provoke the wireless industry with innovative service plans and added subscriber benefits every few months rather than just competing on price.
The US has imposed tariffs on several products this year. In January, President Trump slapped tariffs on washing machines and solar panel imports. In another major move, we saw tariffs imposed on steel and aluminum imports.
After regaining strength last week, the S&P 500 started this week on a stronger note and gained in the first two trading days. Carrying forward the strength, the S&P 500 opened higher on April 18 and closed the day at four-week high price levels. Five out of 11 major S&P 500 sectors closed higher on Wednesday. Strength in the energy and industrials sectors pushed the market higher. On the other hand, weakness in the consumer staples and telecom services sectors limited the market gains.
The stock price of consumer electronics retailer Best Buy (BBY) rose 3.6% on April 18 following news of a partnership with Amazon (AMZN) to sell televisions that have Amazon’s Fire TV system built in. Beginning this summer, Best Buy plans to launch over ten 4K and HD Fire TV Edition models from Toshiba and Best Buy’s in-house brand Insignia. Through this partnership, Best Buy will become the exclusive retailer to sell Fire TV edition smart TVs.
This week, investors were preoccupied with Russia, as the country’s equities fell dramatically after the relations with countries in the West, including the U.S., deteriorated. First in the list, however, is Barclays Capital, as the asset management arm of the British bank said it would shut down a host of exchange-traded notes (ETNs). Russia is second in the list followed by crude oil, which has been on a tear lately thanks to dropping stockpiles in the U.S. Leveraged ETFs and biotechnology stocks close the list. Check our previous trends edition at Trending: Soybean Prices Whipsaw on Trade War Fears.
Juniper Networks’ (JNPR) revenue fell 11% YoY (year-over-year) in 4Q17, primarily due to weakness in the company’s routing business and cloud vertical. Juniper has attributed this weakness to a shift to scale-out from scale-up architecture among cloud customers. Lower demand from cloud customers has meant that Juniper stock has fallen ~11% since October 2017, when the company announced its preliminary 3Q17 results, which were lower than analyst estimates.