|Bid||0.00 x 1000|
|Ask||0.00 x 800|
|Day's Range||255.03 - 257.12|
|52 Week Range||215.73 - 265.93|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.15%|
Despite strong earnings and potential progress in trade talks, the major U.S. indexes could see a bit of a correction this week on guidance concerns.
Gold prices (GLD) haven’t been able to catch a break even as geopolitical concerns become more pronounced. On August 15, gold prices fell to a 19-month low of $1,173 per ounce as the US dollar continued its winning streak. Despite the trade war concerns, the political and economic tensions in the EU (European Union) (HEDJ), and Turkey’s (TUR) latest currency and economic crisis, gold has behaved like any other risk asset and not gained any bids.
On August 9–16, US equity indexes had the following correlations with US crude oil September futures: the S&P Mid-Cap 400 (IVOO): 46.9% the S&P 500 (SPY): 38.7% the Dow Jones Industrial Average (DIA): 32.5%
On August 16, US crude oil September futures rose 0.7% and settled at $65.46 per barrel—$0.45 above the lowest closing level in more than two months. On the same day, the Energy Select Sector SPDR ETF (XLE) rose 0.7%. The small rise in oil prices might also be behind a rise of 0.8% and 1.6% in the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA), respectively, in the last trading session. In Part 3 of this series, we’ll analyze US crude oil’s relationship with these equity indexes.
Since the time Donald Trump began his presidential campaign, he has targeted automakers (XLY) like Ford Motor Company (F) for the decision to move car production to Mexico. Since coming into power, Trump has kept a close eye on automakers to make sure they don’t move their car production out of the US.
ETFs with heavy weightings in Boeing are soaring as Swiss bank UBS raised its 12-month price target of the aircraft manufacturer to $515, which is 50% higher than originally forecasted. Shares of Boeing ...
In an interview with the Wall Street Journal, President Trump said that US steel prices are “a little more expensive.” However, according to Reuters, Trump also said that “the 25 percent tariffs on steel will rescue an industry important to U.S. national security.” He added that after the Section 232 tariff implementation, the competition in the US steel industry would be “internal, like it used to be in the old days when we actually had steel, and U.S. Steel was our greatest company.”
Fund managers have increased their average cash balance from 4.7% to 5.0% in August. The current level of cash holdings is well above the ten-year average of 4.5%.
It's not easy to see from Uber Technologies’ latest financial report why the company was valued earlier this year at $62 billion, making it one of the most valuable private companies. The leading global ride-hailing and delivery company reported a loss of $891 million in the second quarter based on GAAP (generally accepted accounting principles), compared with a profit of $2.456 billion in the first quarter, which reflected a $3 billion gain on asset sales.
In the previous article, we learned that fund managers have turned more positive on equities in the United States.
BAML (Bank of America Merrill Lynch) conducted a survey that polled 243 global investors with $735 billion in total assets under management from August 3 to 9.
Usually, equity and commodity prices share a positive correlation. However, gold (GLD) is an obvious exception. The correlation between equities and commodities isn’t hard to explain. Commodities, like equities, tend to do well when demand is strong during periods of high economic growth. Commodities are weak in risk-off environments. Equity markets also fall during such periods.
The stock market has rallied in recent months despite a growing list of negatives that include tariffs, trade tensions, rising interest rates and valuations that are still high by historical standards. Jack Ablin, co-founder and chief investment officer (CIO) of Cresset Wealth Advisors sees the market breaking out to new record highs, based on five indicators, per an interview with CNBC.
On August 13, US crude oil September futures fell 0.6% and settled at $67.2 per barrel. On the same day, the Energy Select Sector SPDR ETF (XLE) fell 1.3%. The fall in energy stocks might have contributed to the 0.4% and 0.5% fall in the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA), respectively, on August 13. Read Did Oil’s Fall Impact the S&P 500 Index? to learn more.
In the previous part of this series, we looked at some of President Donald Trump’s successful economic policies. Companies such as Ford (F) and Coca-Cola (KO) have seen higher input costs since US steel and physical aluminum premiums have risen following President Trump’s tariffs. The Trump administration has also been hot and cold on actions against Russia.
Judging by recent Wall Street commentary, investors are starting to notice liquidity again, meaning they’re noticing the lack of it. The most noticeable sign came earlier in the year with volatility spiking following the stock market plunge in late January. Although the subsequent rebound makes the selloff look like a mere correction, investors should heed it as a warning sign that liquidity is drying up amid Federal Reserve monetary tightening and other global central banks becoming less accommodative, literally cutting off the supply of fresh capital, according to Business Insider.
On August 3–10, US equity indexes reported small declines. Last week, the Dow Jones Industrial Average (DIA) fell 0.6%, while the S&P 500 Index (SPY) and the S&P Mid-Cap 400 ETF (IVOO) each fell 0.2%.
On August 3–10, US crude oil September futures price fell 1.3% and closed at $67.63 per barrel on August 10—the ninth consecutive close below $70.
The US consumer price index (or CPI) for July rose 0.2% sequentially and 2.9% over the last 12 months. The core CPI, which excludes the volatile food and energy components, rose by 2.4% in the 12 months to July, which was the largest increase in core CPI since September 2008. In June, core CPI rose by 2.3%.
While the U.S. economy remains relatively strong, concerns about Turkey and other emerging markets could be a drag on the major U.S. indexes this week.
Between August 2 and August 9, US equity indexes had the following correlation readings with September US crude oil futures follow: the Dow Jones Industrial Average (DIA): 40.1% the S&P 500’s (SPY): 44.1% the S&P Mid-Cap 400’s (IVOO): 80.5%
On August 9, September US crude oil futures fell 0.2% and settled at $66.81 per barrel—the lowest closing level for active US crude oil futures since June 21. On the same day, oil-weighted stocks Hess Corporation (HES), Occidental Petroleum Corporation (OXY), and Apache Corporation (APA) fell 2.9%, 4.2%, and 6.2%, respectively—the underperformers on our list.