|Bid||23.96 x 2900|
|Ask||24.09 x 1100|
|Day's Range||23.71 - 24.03|
|52 Week Range||23.65 - 30.42|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-1.90%|
|Beta (5Y Monthly)||-0.99|
|Expense Ratio (net)||0.49%|
In the most recent FOMC meeting announcement on Dec. 11, the Federal Reserve held interest rates constant following its two-day meeting, and implied that no action is likely next year amid persistently low inflation and solid growth.
In the most recent FOMC meeting announcement today, the Federal Reserve held interest rates constant following its two-day meeting this week, and implied that no action is likely next year amid persistently low inflation and solid growth. After three rate cuts over the last a year, the Federal Open Market Committee on Wednesday met widely held expectations and kept the funds rate in a target range of 1.5%-1.75%. In its statement discusses the reasons for the decision, the committee indicated that monetary policy is likely to remain steady for a period of time, though officials will continue to monitor conditions as they develop, typical language used in previous announcements.
After struggling to reach new highs once again Wednesday, markets are pulling back some Thursday morning, amidst impeachment hearings and fallout from the Fed, as Fed Chair Jerome Powell testifies before the US house again today. Hoping stocks will continue their ascension through 2020 and beyond, President Donald Trump has long been critical of the Fed and its approach to monetary policy, stating at The Economic Club Of New York on Tuesday, “If we had a Fed that worked with us, we could have added another 25% to those numbers,” referring to potential gains to major stock benchmarks. Powell emphasized that one factor which could damage the economy is the ongoing trade war with China.
In the continued drama that is the trade war, President Donald Trump said Friday he has not agreed to scrap tariffs on Chinese goods, as was claimed yesterday, dashing dreams about a coming resolution to the protracted trade conflict. On Thursday night, Trump trade advisor Peter Navarro also denied the reports. Investors who were rejoicing the possible end to the trade war are now more cautionary, as the roller-coaster headlines continue to affect the markets.
Billionaire investor and notorious trader Paul Tudor Jones sees the S&P 500 tanking by as much as 25% if Sen. Elizabeth Warren defeats President Trump in the 2020 election, but anticipates another 15% upside for the market if President Donald Trump wins reelection. Jones explained on Tuesday that an internal poll at his investment firm uncovered that employees believe the S&P 500 could plummet to 2,250 if Warren wins the election. Related: Would A Democratic President Be Bad For Markets?
While President Trump has affected markets with tweets and posturing, is it possible a Democratic presidential nominee like Elizabeth Warren could alter it herself in the future? Warren has made it no secret she is not the biggest fan of Wall Street and big business, claiming recently in Iowa, “Our democracy has been hijacked by the rich and the powerful.” Although it did not have an incredibly wide viewing reception, a video clip Warren's office produced was released in mid-July with the tagline “Stop Wall Street looting,” now has Blackstone and other private equity firms rattled. Some finance executives who chose to remain anonymous recently told Senate Minority Leader Chuck Schumer they are currently refraining from donating to Democrats running for Senate in 2020 due to their concerns Sen. Elizabeth Warren will become a favorite in the race for the party’s presidential nomination, according to people familiar with the conversations.
After a meteoric rise Wednesday following the FOMC meeting announcement and subsequent press conference with Federal Reserve Chairman Jerome Powell, U.S. stocks reversed all the gains from yesterday, to trade back below Thursday's range amid Impeachment and China trade deal woes. As anticipated, the Federal Reserve cut rates Wednesday by 25 points to a range of 1.5% to 1.75%, as part of what Fed Chairman Jerome Powell has characterized this year as a “midcycle adjustment” in a maturing economic expansion. The FOMC statement seemed generally positive and noted that, “Information received since the Federal Open Market Committee met in September indicates that the labor market remains strong and that economic activity has been rising at a moderate rate," with stocks climbing rapidly higher and closing at fresh all-time highs, which continued in overnight trading.
This article was originally published on ETFTrends.com. With the constant back-and-forth of markets this year due to fluctuating news headlines, a protracted trade war, rampant presidential tweeting, and the prospect of further rate cuts by the Fed, investors are speculating as to whether we are due for a recession or not, as this bull market continues to run long. “This inverted yield curve scare looked frightening at first, but nothing dramatic has happened. The bigger uncertainty of course is these impeachment hearings, and if he survives that he might contribute for some time in boosting the market,” said Yale economist Robert Shiller on CNBC.
New evidence has been mounting that the Federal Reserve could soon take a break in its latest rate-cutting cycle, and, depending on economic data and developments in trade talks, that could happen at, or more likely, after the Oct. 29-30 meeting, say experts. Chicago Fed President Charles Evans, who had championed the last two rate cuts, said this week he foresaw no future cuts this year, though he’s open to one if economic data worsen. Meanwhile, Dallas Fed President Robert Kaplan said he’s “agnostic” on future rate cuts, and Fed Chairman Jerome Powell, said in a speech last week, that decisions are being made as needed, appearing disinterested on future actions.
This article was originally published on ETFTrends.com. With earnings season off to a strong start and markets moving up handily once again this week, stocks are now up nearly 20% this year, close to all-time highs, yet earnings growth is expected to be insignificant. “In any given year we can have these divergences take place but usually not to this degree," said Matt Maley of Miller Tabak on CNBC. Earnings went down, and the stock market was flat.
U.S. markets rallied fiercely last week after President Donald Trump tweeted that "good things" were happening, and that the U.S. had come to a “very substantial phase one deal” with China in the high-stakes trade negotiations between the two economic superpowers, last Friday. “Phase two will start almost immediately” after the first phase is signed, Trump said in the Oval Office alongside Chinese Vice Premier Liu He. Let’s think of this not as phase 1 but phase 0.5, because the US thinks they’ve made an agreement but China doesn’t necessarily believe the same.
The latest example of this vacillation occurred this week, when stocks rallied on Thursday after President Donald Trump said he will meet with Chinese Vice Premier Liu He on Friday, raising hope the two countries could make progress on the trade front, after tanking overnight when the South China Morning Post reported Wednesday night the U.S. and China made no progress in deputy-level trade talks this week. In a tweet, Trump said: “Big day of negotiations with China.
It was a volatile day for U.S. markets that plunged on the open on news that the United States had banned 28 Chinese companies from doing business with American companies due to human rights issues. Markets jumped briefly on news that the Federal Reserve is planning to increase its balance sheet again, in part based on the shock to overnight lending markets in September, Chairman Jerome Powell said Tuesday. The Trump administration put visa restrictions on Chinese officials Tuesday amid ongoing abuses of Muslim minorities in the Xinjiang region.
U.S. stocks were hit hard Tuesday and further brutalized today, after U.S. manufacturers posted the biggest contraction in September since the end of the 2007-2009 recession, reflecting a slowdown in the U.S. and global economies that is further amplified by a protracted trade war with China. The Institute for Supply Management released data showings its manufacturing index slumped to 47.8% last month from 49.1%, marking it the lowest level since June 2009, when the so-called “Great Recession” ended. “We have now tariffed our way into a manufacturing recession in the U.S. and globally,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, said on Tuesday.
U.S. stocks are down Tuesday after U.S. manufacturers posted the biggest contraction in September since the end of the 2007-2009 recession, reflecting a slowdown in the U.S. and global economies that is further amplified by a protracted trade war with China. The Institute for Supply Management released data showings its manufacturing index slumped to 47.8% last month from 49.1%, marking it the lowest level since June 2009, when the so-called "Great Recession" ended. The new export orders index was just 41%, the lowest level since March 2009, down from the August reading of 43.3%, ISM data showed.
House Speaker Nancy Pelosi announced a formal impeachment inquiry into President Donald Trump on Tuesday, sending the markets down. While Trump is was incredulous that the former top Democrat on the House Intelligence Committee would go to such measures, markets seem surprisingly tepid today in the wake of the news. “The actions of the Trump presidency revealed the dishonorable fact of the president’s betrayal of his oath of office, betrayal of our national security, and betrayal of the integrity of our elections,” Pelosi said yesterday.
After broad consolidation over the past two weeks, U.S. markets have been reeling from a variety of news announcement Tuesday, including increasing pressure to impeach President Donald Trump. House Speaker Nancy Pelosi on Tuesday announced she was moving forward with a formal impeachment inquiry. "The actions of the Trump presidency revealed the dishonorable fact of the president's betrayal of his oath of office, betrayal of our national security, and betrayal of the integrity of our elections," Pelosi said.
For most traders and investors, the FOMC, or Fed announcement is an event that triggers excitement and apprehension, as traders scramble to interpret Fed statements, often jolting the market as the news is released. Back on April 18, the president bashed the Fed's approach to monetary policy, which he believed was driving up the dollar and making the U.S. less competitive globally, where zero interest rates prevail. ..Spread is way too much as other countries say THANK YOU to clueless Jay Powell and the Federal Reserve.
After a brief pop higher, the typical head-fake following FOMC, stocks traded lower on Wednesday as traders digested the Federal Reserve’s latest decision on U.S. monetary policy. The S&P 500 has slid 0.7% while the Nasdaq Composite has dropped 1%, as traders considered what another rate cut means for the economy, and investors await a press conference from Federal Reserve Chairman Jerome Powell. The U.S. central bank cut the overnight rate by 25 basis points to a range of 1.75% to 2%.
While there has been significant debate among Federal Reserve officials as to whether or not they will cut interest rates at its meeting today, there is generally consensus among economists that the Fed is going to cut rates by another quarter point at the end of its two day meeting on Wednesday. “Since the Committee delivered its first 25bp (basis points) cut in July, the Fed leadership has continued to highlight uncertainty about the growth outlook and pledged to ‘act as appropriate’ to sustain the expansion, making another rate cut a near certainty,” Goldman Sachs economist Jan Hatzius said. The Fed has fought the trend even though many of its officials have indicated they anticipate that the next economic downturn will see a return to near-zero rates, which former Chairman Alan Greenspan has speculated as well.
This article was originally published on ETFTrends.com. With markets once again within less than 1.5% of all time highs, investors are concerned that these lofty levels could be derailed by global and economic events such as a Fed rate cut, or lack of one. One analyst weighs in on CNBC as to how economic data play into the markets and what the upcoming Fed meeting is likely to hold. Producer Pricing Index (PPI) data could weaken some according to Jay Bryson, Wells Fargo acting chief economist, which would reflect an overall decline in industrial production, which the Fed will take into consideration.
Despite the slight downdraft on Monday, technical market analysts, who watch stock charts rather than look at fundamental news, see a chance for stocks to break above previous highs made in July, after the S&P 500 rose above its 50-day moving average last week and crossed above August highs, two signs of positive market strength. After a fall-off in late July and August, the S&P 500 has been mostly positive in September, climbing back to within 1.5% of all-time highs, amid more muted trade war tensions and optimism that there may be more rate cuts on the way. “For the camp that wants to see new all-time highs, they would like to see the S&P 500 to hold 2,940 to 2,955.
There is significant debate among Federal Reserve officials as to whether or not they will cut interest rates at the next meeting this month. Globally there is a strong trend toward zero and negative nominal rates on sovereign debt, which has been proliferating across the euro zone to Japan and beyond. The Fed has fought the trend even though many of its officials have indicated they anticipate that the next economic downturn will see a return to near-zero rates, which former Chairman Alan Greenspan has speculated as well.