58.87 0.00 (0.00%)
After hours: 6:24PM EDT
|Bid||58.57 x 3200|
|Ask||58.99 x 2200|
|Day's Range||58.76 - 59.10|
|52 Week Range||48.33 - 59.43|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.59|
|Expense Ratio (net)||0.13%|
On June 14, the U.S. Census Bureau announced the advance estimates for US retail and food services sales in May. According to the data, consumer spending increased. Did the economy breathe a sigh of relief?
ETFs tracking three of the S&P 500's 11 sectors are headed for record closes Friday, but before investors see that as a bullish sign they should note two are for sectors used as bond proxies and the other is a defensive sector. The SPDR Real Estate Select Sector ETF rose 0.4% toward a third-straight record close; the SPDR Utilities Select Sector ETF rallied 1.1%, to top the previous record reached on June 6; and the SPDR Consumer Staples Select Sector ETF edged up 0.2% toward a seventh-straight record. Many use the REIT and utilities ETFs as bond proxies given their relatively high yields, with the REIT ETF yielding 3.16% and the utilities ETF yielding 2.97%, versus the S&P 500's implied yield of 1.99%. The 10-year Treasury note has been rallying, and yields have been falling, as investors believe the Federal Reserve's next move on interest rates will be a cut amid concerns that the economy is a slowing. That concern is also helping the consumer staple sector, which is seen as defensive as it includes companies that sell products consumer need rather than want.
Quick, what’s the best performing sector in the S&P 500 so far in June? No, it isn’t the highflying information technology sector — that’s second best.
Markets Soar: Could the Fed Cut Rates?(Continued from Prior Part)Consumer sector soarsOn Friday, Donald Trump announced tariffs on Mexico would be postponed as the Mexican government had agreed to help limit illegal immigration into the US. Rising
UUP, which tracks the Deutsche Bank Long USD Currency Portfolio Index, is up 3.58 percent. Underscoring the strength in the dollar this year, the WisdomTree Bloomberg U.S. Dollar Bullish Fund (NYSE: USDU) is up almost 2.20 percent year to date. Amid expectations that the Federal Reserve will not raise interest rates this year after doing so four times in 2018, dollar strength is confounding some market observers while others expect the scenario to continue.
Technically speaking, the major U.S. benchmarks continue to whipsaw amid trade-fueled volatility though the bigger-picture damage has thus far been largely contained, writes Michael Ashbaugh.
Did April's US Retail Sales Report Fail to Impress?April retail sales data releaseOn May 15, the US Census Bureau announced advance estimates for US retail and food service sales for April 2019. The results were slightly disappointing for the
Tyson Foods Inc. Chief Executive Noel White said Wednesday the processed meats company plans to enter the "alternative protein" space on its own, in a "meaningful way," rather than just invest in an existing company. Speaking at the BMO Farm to Market Conference in New York, White said the company was an early investor in a couple alternative protein companies. "And rather than competing directly with somebody that we have an investment in, we decided that we would exit the investment and move into that category utilizing all the resources that we have available to them to us," White said, according to a transcript provided by FactSet. "So, from an insight standpoint, innovation standpoint, R&D, manufacturing, distribution, sales, we plan to take full advantage of all the resources at our disposal and move into the category in a meaningful way." He said an alternative meats business "certainly has the capability of being a $1 billion business for us" in time. The stock rose 1.1% in afternoon trade. It has soared 54.5% year to date, while the SPDR Consumer Staples Select Sector ETF has rallied 13.2% and the S&P 500 has gained 13.8%.
Shares of Coca-Cola Co. climbed 2.1% in morning trade, enough to pace the Dow Jones Industrial Average's gainers, after Morgan Stanley upgraded the beverage giant, citing valuation. Analyst Dara Mohsenian raised his rating to overweight from equal weight, and boosted his price target to $55 from $52, saying he believes the company has morphed into a structurally higher sales growth company relative to its consumer packaged goods (CPG) peers. Mohsenian said that "surprisingly, and despite clear historical proof," that this is not being recognized in valuation, at what he sees as an "unfair discount to peers." That has provided a "compelling buying opportunity" for investors, Mohsenian said. The stock has gained 3.6% year to date, while the SPDR Consumer Staples Select Sector ETF has rallied 12.5% and the Dow Jones Industrial Average has advanced 9.1%.
What April's Job Numbers Tell Us about the US Economy(Continued from Prior Part)Which sectors added jobs?Hiring across most US sectors looked positive in April. At 76,000, the most jobs were added in the professional and business services sector.
Shares of Kraft Heinz Co. dropped 1.8% in premarket trade Monday, after the branded foods company said it will restate the financial statements in its annual reports for 2016 and 2017, and for each quarterly period for the first nine months of 2018, as it continues to investigate "certain misstatements." The company said the investigation is "substantially complete," but said it still could not file its 2018 annual report, and will not be able to file its 10-Q quarterly report for the first quarter on time. The company previously disclosed it received a subpoena from the Securities and Exchange Commission related to its accounting policies, procedures and internal controls related to its procurement area. Over the weekend, Warren Buffett, who's Berkshire Hathaway Inc. is Kraft Heinz's largest shareholder, said a dispute between Kraft and its auditor prevented Berkshire from reflecting Kraft's performance in its latest earnings report. "There's something going on," Buffett said on CNBC. The stock has tumbled 24.3% year to date, while the S&P 500 has gained 17.5%.
With the expected pricing of Uber next week, U.S. IPO issuance will be at the highest level since 2008. Volatility is also depressed, with the VIX on a steady downtrend. That, combined with the S&P 500 reaching a new record, might suggest a “risk on” environment. But at least one technical indicator tells a […]
How to Make Sense of Economic Indicators and Invest Accordingly(Continued from Prior Part)More power to usSo far, our focus has been on the stock market and manufacturing segment, but what about you and me? Do our activities impact the economy?
Investors wanting to stay ahead of the curve are wise to begin looking at the best exchange-traded funds to buy for a slowing economy. The best ETFs can help protect and diversify your portfolio.While the economy can be considered healthy on many counts, the GDP trend is clearly down. Depending upon which report you believe, the U.S. economy grew by about 3% in 2018. Growth was 4.2% in the second quarter of 2018, 3.4% in the third quarter and a 2.2% in the fourth quarter. The Federal Reserve expects GDP growth of 2.1% this year and 1.9% in 2020.The bottom line is that the economy is still growing but the pace of growth appears to be slowing. Now is not likely the best time to invest for recession, but it is a good time to tap down on risk while continuing to maintain exposure to the market. In different words, don't jump out of your stock funds and pile into cash. Just stay invested in a smarter way.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best Stocks to Buy for May To make smarter moves for a slowing economy, these are the best ETFs to consider holding now: Best ETFs to Buy for a Slowing Economy: SPDR S&P 500 (SPY)Expenses: 0.0945%, or $9.45 for every $10,000 investedLong-term investors are wise to hold a low-cost stock fund like the SPDR S&P 500 (NYSEARCA:SPY), no matter what the economy and markets are doing.SPY is an outstanding core holding to build upon in your portfolio because of its primary quality as a diversified stock fund. But this same diversification is a key quality to look for in a fund when uncertainty abounds in the market.Since SPY tracks the S&P 500, you'll get exposure to approximately 500 of the largest U.S. companies, as measured (and weighted) by market cap. This means top holdings include mega-caps like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN). Healthcare Select Sector SPDR (XLV)Expenses: 0.13%The healthcare sector can be a smart defensive play when the economy is weakening, and the Healthcare Select Sector SPDR (NYSEARCA:XLV) is just what the doctor ordered for this condition.No matter what the economy is doing, consumers still go to the doctor and fill their drug prescriptions. For this reason, healthcare stocks can hold up better than a broad market stock index when the investor herd begins to shift into risk-off mode. * 7 Stocks That Are Soaring This Earnings Season XLV gives investors a diversified basket of health stocks, primarily large U.S. names like Johnson & Johnson (NYSE:JNJ), UnitedHealth Group (NYSE:UNH) and Pfizer (NYSE:PFE). Utilities Select Sector SPDR (XLU)Expenses: 0.13%In addition to healthcare, the utilities sector is known for its defensive qualities, which makes an ETF like the Utilities Select Sector SPDR (NYSEARCA:XLU) a smart choice in a slowing economy.Utilities stocks are value-oriented investments, which tend to perform better than growth stocks as the economy gets closer to recession, especially when stocks enter a bear market.When the investor herd begins to turn away from the market risk of growth stocks, they like to buy the solid, dividend-producing stocks like XLU top holdings NextEra Energy (NYSE:NEE), Duke Energy (NYSE:DUK) and Dominion Energy (NYSE:D). Consumer Select Sector SPDR (XLP)Expenses: 0.13%Investors wanting broad exposure to defensive stocks will like what they see in the Consumer Select Sector SPDR (NYSEARCA:XLP).XLP tracks the Consumer Staples Select Sector index, which means it's full of defensive stocks in consumer industries and products such as beverages, household goods, food, and tobacco. Top holdings include Proctor & Gamble (NYSE:PG), Coca-Cola Company (NYSE:KO) and PepsiCo (NASDAQ:PEP). * 7 Stocks to Buy That Ought to Buy Back Shares XLP can compliment other defensive stock funds investing in the healthcare and utilities sectors because there is very little overlap with these sectors. SPDR Gold Shares (GLD)Expenses: 0.4%Investors wanting to build a defensive portfolio in anticipation of market volatility or a bear market may want to consider adding a low-cost precious metals fund like SPDR Gold Shares (NYSEARCA:GLD).Unlike mutual funds that invest in gold and other precious metals, GLD does not invest in mining stocks; it simply tracks the price of gold bullion, less expenses.Funds that track the price of gold can be great diversification tools because gold price movements have very little correlation with stock prices. Investors wanting to add GLD, or other funds with narrow concentrations in one sector or asset type, are wise to allocate 10% or less of their portfolio so they can receive the benefits of diversification without adding unnecessary market risk. iShares MSCI Emerging Markets (EEM)Expenses: 0.67%A slowing U.S. economy does not by default mean that economies elsewhere in the world are in trouble. If you want to diversify away from U.S. stocks, one of the best ETFs to do the job is the iShares MSCI Emerging Markets (NYSEARCA:EEM).EEM tracks the MSCI Emerging Markets Index, which consists of large- and mid-cap stocks, with the greatest concentration of exposure to emerging and developed Asia, including China, South Korea, Taiwan and India. * 7 A-Rated Stocks That Are Under $10 Most of the holdings in the EEM portfolio are large-caps like Tencent Holdings (OTCMKTS:TCEHY), Alibaba (NYSE:BABA) and Taiwan Semiconductor Manufacturing (NYSE:TSM). iShares Core U.S. Aggregate Bond (AGG)Expenses: 0.06%A slowing economy typically coincides with moderating or falling interest rates, which means bond prices can move higher. A cheap, diversified bond fund like the iShares Core U.S. Aggregate Bond Fund (NYSEARCA:AGG) is one of the best ETFs in this environment.AGG tracks the Bloomberg Barclays U.S. Aggregate Bond Index, which consists of over 7,000 bond securities, ranging from Treasuries to corporate bonds and municipal bonds of all maturities.Although long-term bonds can see higher price gains during recession, a slowing economy can be more challenging to navigate, which is why diversification is key for bond holdings, as well as stocks, in this environment.As of this writing, Kent Thune did not personally hold a position in any of the aforementioned securities. However, he holds SPY, XLV, XLP, GLD, and AGG in some client accounts. Under no circumstances does this information represent a recommendation to buy or sell securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Stocks to Buy for May * 5 Elephant-Sized Companies Warren Buffett Could Buy * 7 Cheap ETFs for Novice Investors Compare Brokers The post 7 of the Best ETFs to Buy for a Slowing Economy appeared first on InvestorPlace.
Shares of Kellogg Co. sank 4% in premarket trade Thursday, after the cereal and snack company reported a first-quarter profit that beat expectations, while sales came up a bit shy, amid weakness in North American, Europe and Latin America, and said its chief financial officer was leaving. Net income fell to $282 million, or 82 cents a share, from $444 million, or $1.27 a share, in the year-ago period. Excluding non-recurring items, adjusted EPS fell to $1.01 from $1.23, above the FactSet consensus of 95 cents. Sales rose 3.5% to $3.52 billion, just below the FactSet consensus of $3.54 billion. Sales in North America fell "less than 2%," in Europe fell 4% and in Latin America declined 3%, but increased 60% in Asia, Middle East and Africa (AMEA). In North America, cereal sales fell 4.9%, snacks sales slipped 0.25 and frozen sales declined 1.5%. Separately, Kellogg said CFO Fareed Khan was leaving the company on July 1, after 2 1/2-years in the role. The company named Amit Banati, currently president of Kellogg AMEA, as Khan's successor. The stock has gained 4.8% over the past 12 months, while the SPDR Consumer Staples Select Sector ETF has rallied 16.3% and the S&P 500 has advanced 10.9%.
Investors should consider sector-specific ETFs to focus on targeted segments of the market, especially as U.S. markets head in to the late business cycle. On the recent webcast, How Sectors Can Help with ...
Investors often believe May brings with it potential downside for stocks, but over the past two decades, the S&P 500 has averaged May gains of 0.30 percent. What comes after May can be trying for investors, ...
Investors watching this week's G-20 summit closely, as President Trump is expected to meet with President Xi to smooth things on the trade front. UBS predicting the global growth to drop by as much as 75 basis points should those talks fail. Wilmington Trust CIO Tony Roth joins Yahoo Finance's Seana Smith.
Stocks sank sharply for the second day in a row, as investor concern that delicate trade talks between the U.S. and China could collapse. Michael Gapen, Barclays Chief U.S. Economist, joins Seana Smith on 'The Ticker' to discuss how a trade war could impact the country's GDP.
The U.S. jobs report is a solid beat on expectations, adding 263,000 jobs in April. Average wage growth was underwhelming which grew 0.2%. Bankrate.com Senior Economic Analyst Mark Hamrick and Rockland Trust Vice President & Portfolio Manager Rachael Aiken joins Yahoo Finance's Seana Smith.