|Bid||53.47 x 1000|
|Ask||53.66 x 1400|
|Day's Range||52.50 - 54.99|
|52 Week Range||47.66 - 64.84|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-14.60%|
|Beta (5Y Monthly)||0.66|
|Expense Ratio (net)||0.13%|
Investors worried about the next market downturn can find plenty of protection among exchange-traded funds (ETFs). Individual stocks can carry a lot of risk, while mutual funds don't have quite the breadth of tactical options. But if you browse through some of the best ETFs geared toward staving off a bear market, you can find several options that fit your investing style and risk profile.Entering 2020, Wall Street keyed in on a multitude of risks: the outcome of the Democratic primaries and the November presidential election; where U.S.-China trade relations would head next; and slowing global growth, among others.But Collaborative Fund's Morgan Housel hit it on the nose early this year in a must-read post about risk: "The biggest economic risk is what no one's talking about, because if no one's talking about (it) no one's prepared for it, and if no one's prepared for it its damage will be amplified when it arrives."Enter the COVID-19 coronavirus. This virus, which has a fatality rate of about 2% and appears highly contagious, has afflicted more than 80,000 people worldwide in two months, claiming 2,700 lives. Those numbers almost assuredly will grow. The Centers for Disease Control and Prevention have already warned that they believe an expanded U.S. outbreak is not a question of "if," but "when." U.S. multinationals have already projected weakness due to both lower demand and affected supply chains, and the International Monetary Fund is already lowering global growth projections.Whether a bear market is coming remains to be seen. But investors clearly are at least rattled by the prospects; the S&P; 500 has dropped more than 7% in just a few days. If you're inclined to protect yourself from additional downside - now, or at any point in the future - you have plenty of tools at your disposal.Here are a dozen of the best ETFs to beat back a prolonged downturn. These ETFs span a number of tactics, from low volatility to bonds to commodities and more. All of them have outperformed the S&P; 500 during the initial market panic, including some that have produced significant gains. SEE ALSO: Kip ETF 20: The Best Cheap ETFs You Can Buy
The beer industry is made up of companies specializing in the production of beer, although many of these firms also produce other alcoholic and non-alcoholic beverages. Beverages are considered consumer staples and thus the beer industry may be considered a small part of the broader consumer staples sector. Some of the well-known names in the industry include Netherlands-based SABMiller International BV, Netherlands-based Heineken NV, and Molson Coors Beverage Co. (TAP).
ETF Trends CIO & Director of Research Dave Nadig joins Seana Smith on The Ticker to discuss his top ETF picks amid market volatility surrounding the coronavirus outbreak.
Stocks bounce back following yesterday’s market sell off. Tracy Chen, Brandywine Global Portfolio Manager and Head of Structured Credit joins Yahoo Finance’s On The Move panel to discuss.
Sam Stovall, CFRA’s Chief Investment Strategist, joins On The Move to discuss how the markets are faring amid the coronavirus outbreak and how leadership is responding to the health scare.
The Department of Justice is seeking informants to crack down on anti-trust schemes like price fixing. This comes as consumers are stocking up on supplies like cleaning supplies, canned foods, and hand sanitizer. Yahoo Finance’s Dan Roberts, Jared Blikre and Dan Howley join Seana Smith on The Ticker to discuss.
During the coronavirus-spurred 2020 stock correction, these ETFs have outperformed the market, including U.S. Treasuries, bonds, gold and China-linked ETFs.
Stocks are plunging, volatility is skyrocketing and bears are partying like its 2008. The rush into bonds has submerged Treasury yields across the curve -- even out to 30 years -- below 1% for the first time in history. Given the risky backdrop, you'll be forgiven for your desire to sit on the sidelines until some semblance of normalcy returns. But for those brave enough to enter the fray, I have three top stock trades for this week that include some safe stocks to buy.What do I mean by safe? Well, for starters, these stocks have exhibited relative strength during the market meltdown. That is to say, they've fallen far less than the S&P 500. Second, they all boast betas well below the market.So, if the S&P 500 is a hare, these stocks are tortoises.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMoreover, two of the three picks are also well-known for their lofty dividend payouts. So in a world where bond yields are seemingly headed toward zero, the appeal of dividend-paying stocks is on the rise. * 10 Ways to Diversify Your Portfolio at This Time of Crisis That said, here are three top stock trades to consider. Top Stock Trades This Week: Walmart (WMT)Source: Jonathan Weiss / Shutterstock.com Beta: 0.43The "safeness" of Walmart (NYSE:WMT) is on full display this morning. While the rest of Wall Street is having a rough day Monday, WMT stock is not even down 1%. That said, its resiliency is likely a byproduct of two things. First, it belongs to a defensive sector -- consumer staples -- with a history of outperforming during times of turmoil.Secondly, pandemic fears surrounding the coronavirus from China have boosted stocks like Costco (NASDAQ:COST) and Walmart due to the increased foot traffic as worried consumers snatch-up bottled water, toilet paper and paper products to fill their bunkers.Therefore, because both of these dynamics are likely to remain, Walmart is one of my favorite top stock trades of safe stocks to buy.The Trade: Equity lovers could buy WMT stock outright. Options traders can buy the May $120/$125 bull call spread for around $2.30. Consumer Staples Select Sector SPDR Fund (XLP)Source: Shutterstock Beta: 0.66Instead of picking individual companies and running the risk that your safe stock suddenly sours, you could opt for a more diversified play using Exchange Traded Funds (ETFs). Moreover, to harness the defensive nature of consumer staples, for example, you could purchase the Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP).In addition to Walmart, its top holdings include household names such as Procter & Gamble (NYSE:PG), Coca-Cola (NYSE:KO) and PepsiCo (NASDAQ:PEP).Compared to the S&P 500's 7% drubbing Monday, XLP is only down 4.5%. Furthermore, from February's peak, the fund off nearly 9%. Meanwhile, the S&P has lost almost 18% of its value over that same time period. The juicy dividend yield of 3.31% for XLP is also likely to keep buyers flocking -- even if prices fall further.Remember, unless the companies comprising XLP start cutting their dividends, the cheaper you can buy the fund, the higher the dividend yield becomes. Which, is the silver lining of corrections and bear markets. Overall, these reasons make XLP a top stock trade for this week. * 5 High-Yield Dividend Stocks With Great Buyback Programs The Trade: Buy XLP stock. Options traders looking to lever up the potential returns could buy the June $60/$63 bull call spread for $1.50. Utilities Select Sector SPDR Fund (XLU)Source: Shutterstock Beta: 0.35For our final safe stock pick, we're sticking with the defensive sector theme and choosing the Utilities Select Sector SPDR Fund (NYSEARCA:XLU). Utility companies have business models that are less sensitive to economic downturns than virtually every other industry. And as such, they've held up quite well during bear markets of the past.The low beta and relative strength have been on full display this month. Compared to the S&P's whack today and recent peak-to-trough decline, XLU is down 5.7% and nearly 10%, respectively. Additionally, its dividend yield of 2.96% is almost as tasty as the consumer staples ETF.So from a charting perspective, XLU has the best looking chart of all the sectors. It's the only one still above its 200-day moving average. And while the short-term trend is a mess, the long-term picture remains healthy.The Trade: Buy XLU stock. Options traders could buy the June $65/$70 bull call spread for around $2.25.As of this writing, Tyler Craig didn't hold positions in any of the aforementioned securities. For a free trial to the best trading community on the planet and Tyler's current home, click here! More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Ways to Diversify Your Portfolio at This Time of Crisis * 3 Cannabis Stocks That Are Ready to Run * 5 High-Yield Dividend Stocks With Great Buyback Programs The post 3 Top Trades This Week of Safe Stocks to Buy appeared first on InvestorPlace.
Canaccord Genuity Managing Director Tony Dwyer joins On The Move panel to discuss how the markets have been acting amid the coronavirus and what investors should look for as they invest.
Over the last few weeks, we have shared some of our concerns about the market -- falling margins, slowing manufacturing, yield inversions, etc.Source: Shutterstock We've also covered some of the issues traders are talking about that aren't likely to have a long-term or predictable impact on the major indices -- the outbreak of the coronavirus from China, the Democratic presidential primary, Brexit.So far, it appears that our generally positive outlook was justified, if perhaps a little overly cautious.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, we still recommend maintaining a careful stance because most of the fundamental issues facing the market remain unchanged. In this week's update, let's do a quick review of some potential trouble spots in market sentiment and what might motivate a shift in our outlook in either direction. Yields Remain FrustratingLately, you may have seen headlines in the financial press about long-term Treasury bond prices falling again.Although the yield curve -- comparing the 10-year yield to the 2-year yield -- hasn't inverted since last August, falling long-term yields are worrisome on their own because of their status as a leading indicator for minor (and sometimes major) corrections in the market.As you can see in the following chart, the yield on 10-year U.S. Treasury bonds, as represented by the CBOE 10-year Treasury Note Yield Index (TNX), has been falling since just before the Christmas holiday. However, prices on the S&P 500 have been rising during that period.Source: Charts by TradingView Historically, a divergence like this that lasts for more than a month has a 74% chance of ending with a 7%-15% correction in stock prices within 60 days. There is a lot of variability in the data, but the pattern is reliable enough to warrant watching the market closely.The last time we saw this sort of divergence was in the third quarter last year when the market pulled back against resistance twice in a row. Risky Assets Like IWM and XLP Are UnderperformingA confirmed bullish rally is usually led by the riskiest asset classes, like small-capitalization stocks, high-yield bonds and emerging-market stocks. Currently, those asset classes are lagging safety assets like Treasury bonds and large-cap stocks.As you can see in the following chart, small-cap stocks (light blue), as represented by the iShares Russell 2000 ETF (NYSEARCA:IWM), are still trading below their recent highs. On the other hand, consumer staples (candles), as represented by the Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP), have been setting new records this week.Source: Charts by TradingView The positive takeaway in a situation like this is that at least investors are taking on new risk -- even if it is in the safest sectors.However, in our experience, if this second divergence continues, we will likely experience greater volatility in March. A very similar situation occurred just prior to the volatility we experienced in the third quarter last year. It's also similar to the situation right before the bear market in late 2018. Sentiment IndicatorsOne of the ways we can get an internal view of the market is through sentiment indicators that look at derivatives pricing for signs of stress. For example, one of our favorites is the CBOE SKEW index, which measures the pricing of put options on the S&P 500. Investors use puts to hedge against risk. If the SKEW is high, investors are hedging, meaning they are nervous.Sometimes the SKEW index can be very wrong, but when it reaches extremes it is usually correct. The spike in the SKEW that occurred on Dec. 19, 2019 turned out to be a false alarm. But our concern is that the lows on the SKEW haven't returned to normal levels. Instead, they continue to rise with the market.As you can see in the following chart, the SKEW is still at moderate levels. But, the floor for the index is higher than it has been since the fall of 2018. This indicates that option prices remain elevated and big traders are still keeping their hedges close.Source: Charts by TradingView The Bottom LineWe don't bet against the market trend, so our outlook remains positive for now. But this update was a chance to explain why we feel a cautious approach is best. We should increase our tolerance for adding risk if rates start to rise, risky assets begin outperforming again or sentiment begins to improve.Conversely, if the indicators we have discussed continue to deteriorate, we will want to be a bit more aggressive about hedging our own risk. We may even want to seek some opportunities to the downside.One of the advantages we have as option traders is our ability to be flexible about how much risk we are taking on and our capacity to determine what that risk looks like.This is especially important right now because it gives us the opportunity to harvest extra premium from the options market.John Jagerson & Wade Hansen are just two guys with a passion for helping investors gain confidence -- and make bigger profits with options. In just 15 months, John & Wade achieved an amazing feat: 100 straight winners -- making money on every single trade. If that sounds like a good strategy, go here to find out how they did it. John & Wade do not own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 20 Stocks to Buy From the Law of Accelerating Returns * 10 Strong Lottery Ticket Stocks That Could Soar in 2020 * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Stocks Are Bullish, But Traders Are Still Cautious appeared first on InvestorPlace.
Shares of Kraft Heinz Co. slipped 0.1% in premarket trading Thursday, after the food and beverage company reported a fourth-quarter profit that beat expectations, although sales fell short. The company swung to net income of $182 million, or 15 cents a share, from a loss of $12.57 billion, or $10.30 a share, in the year-ago period. Excluding non-recurring items, such as impairment charges, adjusted earnings per share slipped to 72 cents from 84 cents but was above the FactSet consensus of 68 cents. Sales fell 5.1% to $6.54 billion, below the FactSet consensus of $6.61 billion. In the U.S., sales declined 2.7% to $4.68 billion to miss expectations of $4.74 billion, as volume/mix decreased by 5.8 percentage points as lower shipments of cheese, coffee, cold cuts and bacon offset growth in condiments and sauces. Pricing increased 3.1%. The stock has dropped 9.8% over the past three months, while the SPDR Consumer Staples Select Sector ETF has gained 4.8% and the S&P 500 has climbed 9.2%.
Reynolds Consumer Products Inc.'s stock opened Friday morning 5.8% above its initial public offering price, to give the household products maker a market capitalization of nearly $5.6 billion. The first trade for the stock was at $27.50 at 10:36 a.m. Eastern for 6.5 million shares, after the IPO priced late Thursday at $26, which was in the middle of the expected range of $25 to $28. The stock has inched slightly higher since then, and was last up 6.2%. Reynolds went public at a time that the Renaissance IPO ETF has rallied 10.9% over the past three months, while the SPDR Consumer Staples Select Sector ETF has gained 4.2% and the S&P 500 has advanced 6.9%.
Shares of Procter & Gamble shed 2.5% in premarket trading Thursday, after the consumer products company reported a fiscal second-quarter profit that beat expectations but revenue that rose less than forecast. Net income increased to $3.72 billion, or $1.41 a share, from $3.19 billion, or $1.22 a share, in the year-ago period. Excluding non-recurring items, core earnings per share came to $1.42, above the FactSet consensus of $1.37. Sales increased 5% to $18.24 billion, below the FactSet consensus of $18.42 billion. Beauty sales increased 7%, grooming sales rose 2%, health care sales increased 14%, fabric and home care sales rose 4% and baby, feminine and family care sales rose 4%. For fiscal 2020, the company raised its sales growth guidance range to 4% to 5% from 3% to 5% and lifted its core EPS growth outlook to 8% to 11% from 5% to 10%. The stock has gained 2.1% over the past three months through Wednesday, while the SPDR Consumer Staples Select Sector ETF has climbed 4.7% and the Dow Jones Industrial Average has advanced 8.8%.
Fairway Market issued a statement via its Twitter account saying it's not filing for bankruptcy. "Despite reports, Fairway Market has no intention to file for chapter 7 or liquidate all of its stores," the iconic New York City grocer wrote. "All 14 stores remain open for business, offering a complete range of high quality, specialty food products, and we look forward to seeing our customers and employees." The New York Post previously reported that Fairway was on the verge of bankruptcy and would be closing all of its locations, though interest from Village Super Market Inc. could save a "handful" of stores. Fairway, which was previously publicly traded, has struggled in the past. An ill-timed expansion and debt drove a chapter 11 filing in 2016. It emerged from bankruptcy with a new board and consortium ownership that included Blackstone Group's GSO Capital Partners. Blackstone's GSO no longer has a position in the company. The Consumer Staples Select Sector SPDR Fund is up 23.4% over the past year while the S&P 500 index has gained 26.6% for the period.
Reynolds Consumer Products set terms of its initial public offering Tuesday, to raise up to $1.32 billion and to value the consumer products company at up to $5.07 billion. The company, which brands include Reynolds Wrap, Hefty and Alcan, said it will offer 47.17 million shares in the IPO, which is expected to price between $25 and $28 a share. The company said there will be 202.63 million shares outstanding after the IPO. If the underwriters, led by Credit Suisse, Goldman Sachs and J.P. Morgan, exercise all the options to buy additional shares, Reynolds Consumer could raise up to $1.52 billion. The company recorded net income of $135 million on revenue of $2.20 billion over the nine months ended Sept. 30, compared with net income of $92 million on revenue of $2.24 billion in the same period a year ago. The company is looking to go public at a time that the Renaissance IPO ETF has rallied 17.4% over the past three months, while the SPDR Consumer Staples Select Sector ETF has gained 4.7% and the S&P 500 has tacked on 10.7%.
Nearby resistance combined with common technical sell signals suggest that the consumer staples sector could be headed for a pullback.