Sector News

U.S. Stocks News

What This Week's Fed Move Means For Your Bonds

For several years, the Fed had been raising rates at a relatively slow and cautious pace, in response to seeing the economy expanding at a "moderate pace". This implies the Fed is fairly committed to their current direction. With their interest rate announcement, Fed decision makers also indicate where they expect to see rates in the coming years.

Posted on 16 June 2018 | 2:19 am

Tech ETFs Down But Avalara IPO Up

The technology sector may be down today as a whole following the news of U.S. President Donald Trump imposing tariffs on China, but one IPO is up–Avalara, a Seattle-based company that sells tax automation ...

Posted on 15 June 2018 | 10:10 am

Fidelity Expands ETF Roster With 2 Bond Funds

Fidelity on Thursday expanded its lineup of exchange traded funds, adding two fixed income products to its ETF suite. Fidelity now offers five fixed income ETFs, a still small amount compared to some of the largest ETF sponsors, but there's no denying the Boston-based fund manager is a major player in the bond fund space. The Fidelity Low Duration Bond Factor ETF is benchmarked to the Fidelity Low Duration Investment Grade Factor Index.

Posted on 15 June 2018 | 9:38 am

A Flat Yield Curve Could Put Pressure on Financial ETFs

Investors may lose interest in financial sector-related exchange traded funds in the short-term as the Federal Reserve hikes interest rates and the yield curve flattens out. For instance, the Vanguard Financials ETF (VFH) experienced almost $160 million in net outflows Tuesday and saw $156 million exchange hands on Wednesday, or more than triple the average daily volume for the past year, report Carolina Wilson and Sarah Ponczek for Bloomberg. “Banks generally borrow short and they lend long,” Mark Hackett, chief of investment research at Nationwide Funds Group.

Posted on 15 June 2018 | 8:35 am

Why There Could Be More Room for Inflation Growth

The US Bureau of Labor Statistics releases a monthly report that tracks price trends in wholesale markets. The PPI (producer price index) is constructed using the inputs of a monthly survey of industries in the manufacturing sector (XLI). The survey consists of questions that determine changes in raw materials prices, production levels, and finished goods.

Posted on 15 June 2018 | 8:02 am

Flat Yield Curve Saps Financial ETFs

The Federal Reserve again raised interest rates on Wednesday, marking the fifth time it has done so since the start of 2017. Bond market observers believe the Fed could increase rates two more times before ...

Posted on 15 June 2018 | 7:36 am

Staples Sector Shows Signs of Potential Rebound

Nearly halfway through 2018, it is fair to say the consume staples sector is disappointing. The Consumer Staples Select SPDR (XLP) , the largest exchange traded fund dedicated to the sector, is off about 10% year-to-date, underscoring the point that consumer staples is one of the worst-performing groups in the S&P 500 this year. XLP devotes more than half its weight to beverage makers and food and staples retailers.

Posted on 14 June 2018 | 8:43 am

FIFA Frenzy Puts Spotlight on These Stocks and ETFs

These stocks and ETFs are likely to benefit from the FIFA World Cup.

Posted on 13 June 2018 | 12:27 pm

How Could High Inflation Affect the Fed?

To begin with, the Fed is widely expected to announce an interest rate hike of 25 basis points at the end of its two-day meeting on Wednesday. Bulls and bears may debate on whether the Fed is likely to increase rates two more times after the June rate hike. During the Fed’s May meeting, the inflation (TIP) target was described as “symmetric,” suggesting that the 2% target would not be used to initiate any dramatic changes to US monetary policy.

Posted on 13 June 2018 | 10:45 am

Should You Invest in the Fidelity MSCI Energy Index ETF (FENY)?

Sector ETF report for FENY

Posted on 13 June 2018 | 6:23 am

Financials & Consumer Staples: 2 ETFs to Watch on Outsized Volume

VFH and FXG saw massive volumes in the last trading session.

Posted on 13 June 2018 | 6:16 am

Are U.S. Interest Rates About to Rise Again?

With the unemployment rate at a low 3.8%, rising wages and a healthy inflation level, the markets are poised for another rate hike by the Federal Reserve. The federal funds rate is currently in the range of 1.5% to 1.75%, but an increase of a quarter of a percentage point is expected, but not guaranteed. On Wednesday, the Federal Reserve will release the most recent economic forecasts, which could hint at additional hikes.

Posted on 12 June 2018 | 11:27 am

Should You Invest in the Fidelity MSCI Consumer Discretionary Index ETF (FDIS)?

Sector ETF report for FDIS

Posted on 12 June 2018 | 6:01 am

Technology ETFs Lead The Charge in 2018

After stumbling earlier this year, the S&P 500 is back on track towards its record highs, with technology stocks and tech ETFs leading the charge. The technology sector is this year’s best performer of ...

Posted on 11 June 2018 | 12:51 pm

Why This Week Could Define the Direction of Monetary Policy

The decisions of the US Fed and the European Central Bank (or ECB) will likely be in focus, as the Bank of Japan (or BOJ) is expected to keep policy unchanged. The US Fed is widely expected to increase rates by 25 basis points on Wednesday, and this information has likely been priced in already. The focus will likely be on the commentary regarding future rate hikes and how Fed members view rising inflation (TIP) and the current trade tensions.

Posted on 11 June 2018 | 6:38 am

Could Unemployment Levels Reach a 58-Year Low?

The latest US employment report indicated that the unemployment rate in the US has declined to an 18-year low of 3.8%. Another fall of a basis point is expected to take the unemployment level to a level not seen since 1960. The Federal Reserve has the mandate to maintain maximum employment.

Posted on 11 June 2018 | 4:33 am

What Now as the US Fed Is Close to Meeting Its Targets?

The Federal Reserve has two major mandates—to maximize employment and maintain stable prices. There are no predefined levels for employment or prices, but the benchmark for employment has been an unemployment rate below 4.0%. The Fed set an inflation (TIP) target of 2.0% under the chairmanship of Ben Bernanke at the beginning of 2012.

Posted on 11 June 2018 | 4:33 am

3 Facts About Bonds Every Retiree Should Know

Bonds can lose money, and having too much money in bonds can be a mistake. Owning bond funds isn't exactly the same as owning bonds.

Posted on 10 June 2018 | 2:47 am

Consumer Discretionary ETF (VCR) Hits New 52-Week High

This consumer discretionary ETF hits a new 52-week high. Are more gains in store for this ETF?

Posted on 8 June 2018 | 6:40 am

Surprise: Trade Deficit Reaches a 7-Month Low

Are Trade Wars Improving the US Trade Deficit? The US international trade deficit decreased to $46.2 billion in April—a healthy decline compared to the revised March reading of $47.2 billion. The report was prepared by the U.S. Bureau of Economic Analysis and the Census Bureau.

Posted on 7 June 2018 | 5:23 am