|Day's Range||0.1600 - 0.2000|
Stifel Head of Institutional Equity Strategy Barry Bannister joins the On The Move panel to discuss the best cyclical sectors to invest in as the federal reserve continues to hold on rate cuts.
The movements in these sector ETFs should be watched closely as the phase-1 trade deal is being signed and there is no tariff relief for a huge chunk of goods until phase-2.
U.S. stock indexes closed at new record highs on the first trading day of 2020, with bulls building on the best year for the S&P 500 since 2013 after a move by China’s central bank aimed at stimulating the country’s economy.
Shares of General Electric Co. are starting 2020 with a bang, as the 5.2% gain leads all gainers among its large-capitalization industrial peers. The rally puts the stock on track to close at the highest price since Oct. 23, 2018. The stock is adding to its 2019 gain of 53.4%, which was the best yearly performance since it soared 65.4% in 1982. It followed up a dreadful two years for the stock, in which it suffered its worst-ever yearly performance in 2018--it tumbled 56.6% that year, after suffering its fourth-worst year in 2017 with a 44.8% decline. GE's stock has now rallied 38.0% over the past three months, while the SPDR Industrial Select Sector ETF has gained 10.8% and the Dow Jones Industrial Average has advanced 10.3%.
Boeing has announced production halt of 737 MAX airliner in January with no timeline of output resumption. The news could benefit/hurt these ETFs.
General Electric Co. said Friday it will pay a quarterly dividend of a penny a share, which means the industrial conglomerate will be keeping it at that lowered rate for over a year. The dividend will be payable Jan. 27 to shareholders of record on Dec. 23. GE's stock was up 2.0% in afternoon trading. At current prices, the stock's dividend yield is 0.36%, compared with the yield for the SPDR Industrial Select Sector ETF of 1.94% and the implied yield for the S&P 500 of 1.89%, according to FactSet. GE had slashed its dividend to a penny per share from 12 cents last year in an effort to preserve cash. That first 1-cent dividend was paid out on Jan. 25, 2019 to shareholders of record Dec. 20, 2018. GE's stock has run up 55.8% over the past 12 months, while the industrial ETF has gained 16.1% and the S&P 500 has advanced 16.8%.
Shares of General Electric Co. rallied 1.7% in afternoon trading, putting them on track for the highest close since Oct. 24, 2018. The industrial conglomerate's stock has now run up 27.8% since it reported better-than-expected third-quarter earnings before the Oct. 30 open. The stock is now the best performer of the 69 equity components of the SPDR Industrial Select Sector ETF over the past month, with a 31.6% gain, and over the past three months, with a 41.9% rise. The ETF has gained 8.6% the past three months, while the Dow Jones Industrial Average has advanced 6.1%.