|Day's Range||6.23 - 6.35|
Investors awaiting progress in the U.S.-China trade talks as Bloomberg reports China will stop buying soybeans from the United States. Meanwhile, Morgan Stanley CEO James Gorman says market segment is "fragile." Yahoo Finance's Seana Smith and Wealth Consulting Group CEO Jimmy Lee discuss.
The Dow drops more than 200 points as investors run for cover over trade fears. With CNBC's Brian Sullivan and the Fast Money traders, Tim Seymour, Karen Finerman, Dan Nathan and Guy Adami.
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.
Investors can take a look at exchange traded fund flows to see how markets respond to the developing global trade war. “Participation through ETFs has trended higher in the last month, aligning with escalation ...
Utilities exchange traded funds (ETFs), such as the Utilities Select Sector SPDR (XLU) , usually sport above-average dividend yields and defensive traits that investors seek amid broader market turmoil. Investors who are looking for companies to invest in that carry minimal risk will often consider utility stocks. Utility companies typically comprise the most fundamental necessities, such as food, water and shelter, or are closely related to the energy required to refrigerate food, heat up water and light up a house.
Rate cut expectations have been inching higher. What does the bond market's message send to investors? asks income expert Bryan Perry, editor of Cash Machine.
As is the case with the other 11 months of the year, there are sector-level opportunities with exchange traded funds in June. Using the original nine sector SPDR ETFs (there are now 11) as the gauges, just two average positive returns in the month of June, according to CXO Advisory. In a month that historically rewards playing defensive, it's not surprising that the best-performing sector SPDR in June usually is the Utilities Select Sector SPDR (NYSE: XLU).
Investors who are looking for companies to invest in that carry minimal risk will often consider utility stocks. Utility companies typically comprise the most fundamental necessities, such as food, water and shelter, or are closely related to the energy required to refrigerate food, heat up water and light up a house. The utilities sector is one of this year’s best-performing groups, underscoring the notion that many investors will embrace utilities stocks and exchange traded funds during favorable interest rate environments.
The trade war between the United States and China is well into its second year. Since Jan. 22, 2018, American stocks have made two runs into all-time-high territory, but overall, they haven't made much progress. The Standard & Poor's 500-stock index is just 2% higher than when the trade conflict started.Now, uncertainty has returned, which means volatility has returned. So today, we'll look at some of the best exchange-traded funds (ETFs) to battle another round of trade jitters.On-again, off-again talks between the U.S. and China seemed headed toward a resolution for most of 2019 but hit a considerable wall in May. The U.S. accused China of walking back some of its agreements and raised tariffs on $200 billion in Chinese imports from 10% to 25%, prompting Beijing to retaliate with new and escalated tariffs of its own.Certain sectors have taken on hair-trigger demeanors. For instance, technology, which experts think could be heavily targeted in future rounds of tariffs, swings daily on the latest comings and goings out of Washington and Beijing. Semiconductor companies, many of which generate gobs of their sales from China, are among the most susceptible stocks.The best ETFs to buy if you want to beat back the trade war, then, avoid these sensitive industries and instead focus on businesses that should come out far less scathed than others. Here, we look at seven top funds from various corners of the market. SEE ALSO: The 19 Best ETFs for a Prosperous 2019
As many corners of the stock market fared well on the new of temporary exemption of the export blacklist against Huawei, a few sector ETFs hit new 52-week high in the recent trading session.
Utilities: Analyzing Movers and Shakers Last Week(Continued from Prior Part)Institutional ownership in XLUAccording to the recent 13F filings, Goldman Sachs was the largest institutional investor in the Utilities Select Sector SPDR ETF (XLU) as of
Utilities: Analyzing Movers and Shakers Last Week(Continued from Prior Part)Chart indicatorsCurrently, the Utilities Select Sector SPDR ETF (XLU) is trading at $58.8, which is more than 1% and 6% above its 50-day and 200-day moving average levels,
[Editor's note: This story was originally published in September 2018. It has since been updated and republished.]Utility stocks were supposed to be yesterday's favorite investment. The theory regarding utility stocks was simple: Robust economic growth coupled with a full labor market was supposed to spark rising inflation. The Fed was supposed to fight rising inflation with rate hikes. Fixed income yields were supposed to rise. Utility stocks, which were long viewed as bond substitutes in an era of ultra-low interest rates, were supposed to fall.But that theory hasn't fully materialized into reality.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe result? Utility stocks haven't lost their shine. With inflation relatively contained and investors ducking into safety, stocks in utilities are still attractive assets to own for yield hunters. That is why the Utilities Select Sector SPDR ETF (NYSEARCA:XLU) finished the past month up 2.3%.compared to the S&P 500's loss of 83 basis points.The markets' recent volatility has contributed to the XLU's gain, as investors flee toward any safe haven. Not to mention, a number of other catalysts are in play. Inflation isn't soaring higher because technology giants are suppressing inflationary pressures (just think about the downward pressure Amazon (NASDAQ:AMZN) is putting on all consumer goods prices). This trend won't reverse any time soon, and thus, inflationary pressures should remain subdued for the foreseeable future. With those forces subdued, utility stocks have room to rally. * Top 7 Dow Jones Stocks of 2019 -- So Far With that said, what are the best utility stocks to buy for your portfolio? Here's a list of five stocks that I think are worth a look: American Electric Power (AEP)Considered one of the industry's heavyweights, American Electric Power (NYSE:AEP) is a massive electric utility company that delivers electricity to more than 5 million customers across eleven states. Over the past month, AEP stock is up just shy of 3%.The business right now is doing pretty well, as robust economic strength in the company's core markets has boosted the business. Overall, sales and earnings are both trending higher at a healthy rate. Sempra Energy (SRE)Another one of the industry's heavyweights is Sempra Energy (NYSE:SRE), the multi-faceted energy company that provides energy services to more than 40 million customers globally across Southern California, Texas, Chile and Peru. In the past month, SRE stock is up 2.6%.Sempra's business is doing well: Both revenues and earnings are trending higher amid a favorable economic backdrop. Plus, the company is continuing its energy diversification efforts by expanding its liquid natural gas (LNG) business, something which the company feels can help fuel sustainable long-term growth. * 10 Baby Boomer Stocks to Buy The dividend yield on SRE stock sits right around 2.96%. That isn't great, but it's right around where the yield has been over the past several years. Duke Energy (DUK)Next up is electric power and gas utility giant Duke Energy (NYSE:DUK). Much like the other names on this list, Duke's operations are stable and healthy. That said, DUK stock is down 3% over the past month. That's contributed to an increased dividend yield, at 4.3%.Business remains fine, despite DUK's downturn, mostly thanks to favorable weather and strengthening economic conditions. And Duke's revenues and earnings have been trending consistently higher at a slow and stable rate.This level of growth should persist for the next several years as economic conditions remain solid. American Water Works Company (AWK)Although electricity and power are very important utilities, another utility of equal importance is water, and that is where American Water Works Company (NYSE:AWK) comes into the picture.American Water provides waters services to 15 million people across 46 states and Canada. That makes American Water the largest and most diverse publicly traded water company. Moreover, American Water is planning on spending a whole bunch of money over the next several years to modernize water distribution infrastructure, an investment that will likely lead to rate hike approvals and robust long-term earnings growth. * 7 Stocks to Buy that Lost 10% Last Week AWK stock has a dividend yield of 1.8%. That isn't great. But, what the company lacks in dividend yield, it makes up for in earnings growth, which should be able to run around 10%-per-year for the next several years. That combination of healthy earnings growth and stable yield should make AWK stock a winning investment. NextEra Energy (NEE)Perhaps the utility stock with the most long-term earnings-growth potential on this list is NextEra Energy (NYSE:NEE). That is because not only does NextEra operate a massive utility business like the other utility players on this list, but the company is also a leading player in renewable energy and battery storage.Over the past decade, this company has grown earnings and dividends at an 8%-per-year clip, and that robust growth should continue so long as the company's renewable business continues to scale.The one thing to be worried about when it comes to NEE stock is that the dividend yield is at 2.52%, which is a five-year low. But, earnings growth is robust, and it is large enough to compensate for a historically low dividend yield.As of this writing, Luke Lango was long AMZN and AWK. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post 5 Utility Stocks to Buy for an Extra Durable Portfolio appeared first on InvestorPlace.
Shares of Pacific Gas and Electric Co. fell 1.3% in premarket trade Thursday, after the San Francisco-based utility said it accepts the determination that its electrical transmission lines were the cause of November's Camp Fire that killed at least 85 people. The determination was made by the California Department of Forestry and Fire Protection (CAL FIRE). "While we have not been able to review CAL FIRE's report, its determination that PG&E transmission lines near the Pulga area ignited the Camp Fire on the morning of November 8, 2018, is consistent with the company's previous statements," PG&E said in a statement. "We have not been able to form a conclusion as to whether a second fire ignited as a result of vegetation contact with PG&E electrical distribution lines, as CAL FIRE also determined." The stock has tumbled 24% year to date through Wednesday, while the SPDR Utilities Select Sector ETF has gained 9.8% and the S&P 500 has advanced 14%.
Technically speaking, the U.S. benchmarks’ May downturn has inflicted damage, writes Michael Ashbaugh, though the S&P 500 has thus far maintained last-ditch support.
Investors Flock to Utilities amid Trade War TensionsUtilities back in focusThe increasing severity of the trade war pulled broader markets down ~2.5% yesterday. The “widow-and-orphan” utilities sector stood firm throughout the day and rose over
How Utilities Fared amid Broader Market Swings Last Week(Continued from Prior Part)ValuationAlmost all the top utility stocks have showed a decent rally in the last few months. They are trading more than 17 times their forward earnings, higher than
How Utilities Fared amid Broader Market Swings Last Week(Continued from Prior Part)Moving averagesThe Utilities Select Sector SPDR ETF (XLU) is currently trading at ~$58.0, marginally above its 50-day and 5% above its 200-day simple moving average