|Day's Range||1.9000 - 1.9000|
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
Investors are seeking to beat the fresh tariff woes by betting on defensive sectors like utilities, real estate, healthcare and consumer staples. We have highlighted one ETF each from these four zones.
Shares of utility companies were broadly lower Wednesday, with the sector the only one of the S&P 500's 11 sectors to lose ground, weighed down by a big bounce in Treasury yields. The SPDR Utilities Select Sector ETF shed 1.0% in afternoon trade, with 27 of 28 equity components losing ground. The biggest decliner was NRG Energy Inc.'s stock which slumped 5.1%. Among other more active utilities ETF components, shares of AES Corp. lost 2.3%, Excelon Corp. gave up 0.9% and Southern Co. shed 0.6%. The lone gainer was Sempra Energy's stock which tacked on 0.6%. Meanwhile, the yield on the 10-year Treasury note rose 3.6 basis points to 2.484%, after falling 10.4 basis points the previous three sessions, as a bounce in the stock market helped calm risk-off trades. Utilities stocks tend to have relatively high dividend yields, so a rise in yields on low-risk Treasurys make them less attractive. The utilities ETF's dividend yield is 3.15%, compared with the implied yield for the S&P 500 of 1.99%, according to FactSet.
How Utility Stocks Fared Last Week(Continued from Prior Part)Chart indicatorsThe Utilities Select Sector SPDR ETF (XLU) closed at $58.30 last week, marginally above its 50-day average, 6% above its 200-day moving average, and close to its all-time
Highlights from Exelon’s Q1 EarningsExelon’s first-quarter earnings Exelon (EXC) reported its first-quarter earnings on May 2. The company reported an EPS of $0.87, which was in line with the consensus estimates. In the same quarter last year,
How Edison International Stock Looks after Its Q1 Earnings(Continued from Prior Part)Analysts’ recommendations Edison International (EIX) stock offers one of the highest potential upsides among the top utility stocks. Based on consensus estimates,
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.
How Edison International Stock Looks after Its Q1 EarningsEdison International Edison International (EIX) stock fell more than 5% on May 1 due to its weak first-quarter earnings. The company reported its first-quarter earnings after the markets
Will Q1 Earnings Fuel Southern Company Stock’s Rally?(Continued from Prior Part)Chart indicatorsSouthern Company (SO) stock is currently trading at $53.2, close to its all-time high. It’s almost 4% and 13% above its 50-day and 200-day simple
Will Q1 Earnings Fuel Southern Company Stock’s Rally?Southern Company’s EPS fell 20%Southern Company (SO) reported its first-quarter earnings today. It reported adjusted earnings of $0.70 per share, missing consensus estimates for the quarter.
Analyzing the Dividend Profiles of the Four Biggest Utilities(Continued from Prior Part)Are top utilities expensive?NextEra Energy (NEE), the biggest utility by market cap, is trading at a forward PE multiple of 22x based on analysts’ estimated
Analyzing the Dividend Profiles of the Four Biggest Utilities(Continued from Prior Part)Total returnsAmong the top utility stocks, NextEra Energy (NEE) leads with the highest total return in the last five years. It has returned 125% (including
How Utility Stocks Played Out Last Week(Continued from Prior Part)Analyst price targetsVery few utility (XLU) stocks offer a handsome potential upside due to their recent rally. Merchant power stock NRG Energy (NRG) is one of them. It offers an