58.00 -0.09 (-0.15%)
After hours: 6:09PM EDT
|Bid||58.11 x 1300|
|Ask||58.24 x 2200|
|Day's Range||54.96 - 58.57|
|52 Week Range||43.44 - 71.10|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-12.80%|
|Beta (5Y Monthly)||0.47|
|Expense Ratio (net)||0.13%|
Looking for any sign of normalcy during these tumultuous times? Any sign at all?Source: Shutterstock Well, you may be glad to know that during this moment of incredible uncertainty on Wall Street, the stock market is actually following some fairly familiar patterns.We all know that the U.S. economy fluctuates between periods of expansion and contraction. Sometimes those fluctuations last a few years, and sometimes they last a little longer.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWe've all been spoiled for the past decade because the expansionary period -- and the related bull market -- lasted for so long.However, all expansions eventually come to an end, and it looks like we're at the end of the most recent expansion.The good news is that all contractions also eventually come to an end, so we can all be on the lookout for it. Hopefully it's not too far around the bend.So, what are we seeing now in the stock market, and what should everybody be looking for in the future to identify the bullish turn? Sector Rotation in the S&P 500Historically -- remember, we've seen market corrections before -- when the stock market pulls back, defensive sectors, like healthcare, consumer staples and utilities, tend to outperform.Similarly, when the stock market starts to bottom out, more aggressive sectors, like financials, consumer discretionary and technology, tend to outperform.The business cycle chart in Fig. 1 illustrates the relationship between the stages of the cycle -- expansion and contraction in the economy -- and the stock market sectors that tend to outperform during each stage of the cycle.Source: Chart by InvestorPlace Fig. 1 -- Sector Rotation during the Business CycleSo, what's happening now?Since the S&P 500 hit its peak on Feb. 19, every sector in the market has experienced a double-digit percentage drop.However, some sectors have outperformed others during the bear-market reversal. Can you guess which ones? Which Sectors Are Outperforming?Let's look at a comparison chart of the S&P 500 and the 10 S&P 500 sectors as represented by the Select Sector SPDR exchange-traded funds (ETFs). These ETFs are tracked by State Street Global Advisors.Here's the breakdown of the performance of each fund in the sector-comparison chart in Fig. 2: * Health Care Select Sector SPDR Fund (NYSEARCA:XLV): -17.2% * Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP): -17.3% * Technology Select Sector SPDR Fund (NYSEARCA:XLK): -23% * Utilities Select Sector SPDR Fund (NYSEARCA:XLU): -24.1% * SPDR S&P 500 Fund (NYSEARCA:SPY): -26% * Consumer Discretionary Select Sector SPDR Fund (NYSEARCA:XLY): -28.1% * Materials Select Sector SPDR Fund (NYSEARCA:XLB): -28.2% * Real Estate Select Sector SPDR Fund (NYSEARCA:XLRE): -29.4% * Industrial Select Sector SPDR Fund (NYSEARCA:XLI): -32.6% * Financial Select Sector SPDR Fund (NYSEARCA:XLF): -36.2% * Energy Select Sector SPDR Fund (NYSEARCA:XLE): -49%Source: Chart courtesy of TradingView Fig. 2 -- SPDR Sector ETFs Comparison Chart, Mid-March to AprilAs you can see, three of the top four performing sectors during the past six weeks are healthcare, consumer staples and utilities.This is exactly what we would expect to see.So, why is this good news?It's good news because even though we don't know exactly what is going to happen next in the novel coronavirus pandemic, we can be quite confident that Wall Street is going to behave like it has during past pullbacks.That means we can put the odds in our favor by making trades that are informed by history.It also means we can watch the financial, consumer discretionary and technology sectors for signs of a turnaround in the future and be confident in what we're seeing. The Bottom LineWe haven't seen the end of the volatility on Wall Street. Every new revision in the United States' potential Covid-19 death toll will bring swings in the stock market.However, we can navigate these choppy waters. We've got a few historical lighthouses on the shore serving as markers that we can watch to avoid the rocks.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 * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Finding Predictability Amid the Uncertainty on Wall Street appeared first on InvestorPlace.
During the coronavirus-spurred 2020 stock correction, these ETFs have outperformed the market, including U.S. Treasuries, bonds, gold and China-linked ETFs.
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.
The central banks across the globe are expected to step in to prop up the virus-infected economy. We have highlighted ETFs & stocks from sectors that are expected to skyrocket on lower rates.
Man, it's getting tough out there. The S&P 500 and PowerShares QQQ ETF (NASDAQ:QQQ) are down more than 15% from recent highs just seven trading sessions ago. Friday's volatile session didn't make it any easier in the stock market today.From peak to trough, the Dow shed 1,000+ points in Friday's session, the third time it's done so this week. The VIX is hovering above $45 as volatility remains high. With coronavirus warnings and headlines popping up seemingly by the minute, and volatility running rampant, who in the world wants to buy into the weekend?InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nowhere to HideThis action is uncommon, but it's what makes trading so difficult. What took months to go from a $300 breakout to $339 in the SPDR S&P 500 ETF (NYSEARCA:SPY), the market has now undone in just a few days.The craziest part? There's nowhere to hide * 10 Stocks to Buy for Your 10-Year-Old A few names have been outperforming lately, like Square (NYSE:SQ) and Alteryx (NYSE:AYX). We covered SQ on Thursday and AYX on Friday in the Top Stock Trades column. But aside from a few stocks that are simply not down as much as the averages, cash and bonds are about the only things working right now.The Select Sector SPDR Utilities ETF (NYSEARCA:XLU) was down more than 4% with two hours left of trading in the stock market today. It didn't help that Emerson Electric (NYSE:EMR) warned that its Q2 revenue would see a $100 million to $150 million coronavirus-related hit. From peak to trough, the sector has roughly tracked the S&P 500, down 14.6% over the last 8 sessions. That's not safety.Gold prices via the SPDR Gold Trust ETF (NYSEARCA:GLD) are down more than 3% Friday. The GLD is also down a quick 7.2% from Monday's high, spoiling the "flock to gold" theory a bit. Dividend stocks, safe-haven plays, REITs, blue chips -- it doesn't matter. You name it and it's likely down.Bonds are the exception, as the iShares 20+ Year Treasury Bond (NASDAQ:TLT) hit a new high in the stock market today. That's as 10-year Treasury yields hit a new record low and as two-year yields sink 20 basis points to 0.905%. That's the latter's largest fall in yield since the Great Recession.So in other words, things are going great. Movers in the Stock Market TodayApple (NASDAQ:AAPL) CEO Tim Cook made things seem a little better on Friday. While the virus may or may not hamper the company's supply chain next quarter, it appears to be a temporary issue. Things are getting back to normal in terms of production, however, Cook says he sees no long-term impact."I see no long-term difference between what was happening four weeks ago vs. what's happening today…The market takes time to recognize that, and it's gonna do what it's gonna do."Shares of Forty Seven Inc (NASDAQ:FTSV) were up big on the day, as rumors swirled about Gilead Sciences (NASDAQ:GILD) potentially scooping up the company in an acquisition. FTSV is one of the rare stocks that hit a new 52-week high in the stock market today. It now commands a $2.3 billion market cap.Which would you rather buy, cruise companies or banks?According to Odeon's Dick Bove, a well-known bank analyst, now is still not the time to buy the banks. Declining loan quality will contribute to deteriorating earnings. That's despite many stocks sporting low valuations, as well as massive losses due to the coronavirus. Citigroup (NYSE:C), Bank of America (NYSE:BAC) and JPMorgan (NYSE:JPM) are all down between 20% and 24% from their recent 52-week highs.It doesn't matter though, at least not to Bove. Now is not the time to buy, he says.So how about cruise operators? Carnival (NYSE:CCL), Norwegian (NYSE:NCLH) and Royal Caribbean (NYSE:RCL) all surprisingly rallied on Friday, all by several percent. That's despite the SPY down about 3% in afternoon trading. Nomura analysts argue that the impact of the virus is now priced into these stocks. All three are down about 40% from their highs. However, Nomura does warn that the headlines can continue to worsen.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Your 10-Year-Old * 5 Hot Cannabis Stocks to Snap Up * Buy These 5 Super Fast-Growth Dividend Stocks While They Are Down The post Stock Market Today: Nowhere to Hide; Cruise Stock Bottom? appeared first on InvestorPlace.
Utilities ETFs, including the Utilities Select Sector SPDR (XLU) , are performing admirably this year. Low bond yields and investors' desire for defensive assets in the wake of the coronavirus are helping the cause, but there may be more to the story. Momentum continues building for renewable energy over coal and that's not hurting electric utilities, such as those residing in XLU.
Public Service Enterprise Group Inc. , known as PSE&G, said Friday it raised its quarterly dividend by two cents to 49 cents a share. The new dividend will be payable March 31 to shareholders of record on March 10. The electric and gas utility company's stock rose 0.6% in midday trading. Based on current stock prices, the stock new annual dividend rate would imply a dividend yield of 3.33%, compared with the yield for the SPDR Utilities Select Sector ETF of 2.69% and the implied yield for the S&P 500 of 1.80%, according to FactSet. PSE&G's stock has lost 3.6% over the past three months, while the utilities ETF has run up 12.7% and the S&P 500 has gained 7.6%.
Shares of PPL Corp. edged up 0.3% in premarket trading Friday, after the utility reported a fourth-quarter profit that beat expectations but revenue that missed, and announced a 1/4-cent dividend increase. Net income fell to $364 million, or 48 cents a share, from $415 million, or 57 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share rose to 57 cents from 52 cents, above the FactSet consensus of 53 cents. Revenue increased to $1.95 billion from $1.94 billion, but was below the FactSet consensus of $2.05 billion. The company expects 2020 EPS of $2.40 to $2.60, which surrounds the FactSet consensus of $2.52, while lowering its 2021 guidance range to $2.40 to $2.60 from $2.50 to $2.80. PPL increased its quarterly dividend to 41.50 cents a share from 41.25 cents, with the new dividend payable April 1 to shareholders of record on March 10. Based on Thursday's closing price of $36.28, the new annual dividend rate implies a dividend yield of 4.58%, compared with the yield for the SPDR Utilities Select Sector ETF of 2.73% and the S&P 500's implied yield of 1.79%. PPL's stock has gained 7.9% over the past three months while the utilities ETF has climbed 11.6% and the S&P 500 has gained 9.0%.
Value investing is the practice of trying to identify undervalued stocks in an effort to capitalize on the market's underestimation of their intrinsic value. Typically, investors look to a company's fundamentals, comparing them against similar businesses in order to identify potentially undervalued stocks.
With more than half the S&P 500 companies having reported fourth-quarter earnings, the earnings recession is now set to end. FactSet's blended earnings growth estimate, which includes already reported results and consensus analyst estimates of companies that haven't reported, is now showing a 0.09% gain from a year ago, compared with a negative 2.0% at the start of the earnings-reporting season. If the final results are positive, a three-quarter streak of negative growth would be snapped, and it only takes two-straight declines to define a recession. There's still a long way to go, as 275 of 505 S&P 500 companies, or 54.5%, have reported results, according to FactSet. The best sector performer has been utilities with 19.0% earnings growth, while energy has been the worst performer with a 42.7% decline. The S&P 500 gained 0.9% in morning trading, and has tacked on 3.0% this year.
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.
Lance McGray, Advisors Asset Management Managing Director and Head of ETF Product, joins the On The Move panel to discuss how the markets are faring amid the coronavirus and what impact the virus has had on ETFs.
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.
TD Ameritrade Shawn Cruz joins the On The Move panel to discuss his views on how the markets are faring and what investors can do amid the coronavirus to see positive results.
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.
The Coronavirus outbreak continues to spread and it's taking a toll on the global economy, but Alicia Levine, BNY Mellon Chief Strategist, tells Yahoo Finance's On The Move “It’s not just the manufacturing and the supply chain issues. It’s also the services.”