U.S. factory production in April grew 0.5%, bringing cheer to manufacturing units that were desperately looking for revival.
Posted on 18 May 2018 | 12:07 pm
The Energy Select Sector SPDR (NYSEArca: XLE), the largest equity-based energy exchange traded fund, and rival energy funds continue notching gains. With Thursday’s positive performance, XLE is up more ...
Posted on 18 May 2018 | 8:26 am
Capacity utilization in US industries and industrial production data are published by the Federal Reserve every month. There are only a few economic indicators that act as a precise leading indicator for the US economy, and capacity utilization is one of them.
Posted on 18 May 2018 | 6:40 am
Xcel Energy (XEL), based in Minneapolis, Minnesota, is one of the largest regulated utilities in the country. Let’s look at institutional investors’ activity in the first quarter.
Posted on 17 May 2018 | 2:55 pm
Toyota Motor’s (TM) vehicle sales in North America fell 1.1% YoY (year-over-year) to 2.8 million units in fiscal 2018. In spite of this drop in sales volumes, the company’s revenue from the region rose to 10.6 trillion Japanese yen in fiscal 2018, ~3.3% higher than in fiscal 2017.
Posted on 17 May 2018 | 1:55 pm
Utility stocks—generally called widow and orphan stocks—are one of the poorest performing sectors across the broader markets so far this year. With the outlook for utilities not so exciting, we’ll see how institutional investors have recently played out their utilities (IDU) (VPU) holdings. According to a recent 13F filing, Goldman Sachs is the largest institutional investor in the Utilities Select Sector SPDR ETF (XLU) with close to 11.5% of its outstanding shares as of March 31.
Posted on 17 May 2018 | 11:50 am
Oil exploration stock plays are surging along with crude futures amid expectations the global oil glut will continue to ease.
Posted on 17 May 2018 | 10:36 am
The combination of rising interest rates and a stronger dollar is plaguing some asset classes and sectors. One of the epicenters of those woes may just be the consumer staples sector. Year-to-date, the usually docile Consumer Staples Select SPDR (XLP) , the largest ETF tracking the consumer staples sector, is lower by more than 13% and things have not been any better for staples funds in recent weeks.
Posted on 17 May 2018 | 7:57 am
As per the latest Bank of America Merrill Lynch (or BofAML) Global Fund Manager survey released on May 15, growth expectations have slipped to the lowest level in the last two years. The report indicated that global fund managers expect a slowdown in global growth with only 1% of the respondents thinking that the global economy would strengthen in the next 12 months. Only 2% of respondents were expecting a recession in 2018, while most of the respondents expect the next recession by the first quarter of 2020.
Posted on 17 May 2018 | 5:20 am
Recently, Goldman Sachs (GS) said that falling unemployment and the rising budget deficit could drive the Fed’s faster interest rate hike process. When there are more bonds and fewer buyers in the economy, the government will try to pay investors higher in the form of yields to buy US bonds (BND), which will ultimately increase the interest rates in the economy (SPY) (QQQ). The Fed hiked the interest rate for the sixth time since December 2015.
Posted on 16 May 2018 | 11:05 am
The April retail sales report was released on May 15, and the surprise reaction to this report was an increase in bond (BND) yields across the board. There are numerous ways to explain the spike in yields, and the retail (XRT) sales data only acted as a catalyst to the Treasury (GOVT) sell-off, which began a few hours before the retail sales data was released. With the US economy showing signs of continued improvements and other developed economies slowing down, chances are that the US could lead the tightening cycle, which could have led to an increase in bond yields on Tuesday.
Posted on 16 May 2018 | 7:25 am
The utilities sector, one of the most sensitive sectors to interest rate hikes, has been subdued this year. The Utilities Select Sector SPDR ETF (XLU), which tracks the S&P 500 Utilities Index, has fallen more than 4% year-to-date, while the S&P 500 has risen 3%. Strength in Treasury yields and faster-than-expected interest rate hikes have weighed on utilities this year.
Posted on 16 May 2018 | 6:35 am
The US Census Bureau releases a monthly report on retail sales in the United States. As per its website, the Census Bureau conducts an advance monthly survey of retail trade and food services companies. The April retail sales report indicated that the gains were broad-based with nine of the 13 major categories moving higher during the month.
Posted on 16 May 2018 | 5:52 am
Sector ETF report for FENY
Posted on 16 May 2018 | 4:25 am
The Energy Select Sector SPDR (XLE) , the largest equity-based energy exchange traded fund, is up about 9% this month, underscoring the point that energy sector has recently been one of the best-performing sectors. Oil prices recently rallied after the U.S. dropped out of the Iran nuclear accord and added new sanctions against the country, which is a member of the Organization of Petroleum Exporting Countries (OPEC). “Iran’s oil exports were down by around 1 million barrels per day under sanctions before the 2015 deal was reached.
Posted on 15 May 2018 | 10:13 am
Xcel Energy (XEL) is a pure-play regulated utility valued at $22.9 billion. Xcel Energy serves more than 5 million customers mainly in Minnesota, Colorado, and Michigan. The stock has fallen more than 6% year-to-date. Xcel Energy’s large exposure to regulated operations facilitates stable earnings and eventually stable dividends. To learn more, read How Xcel Energy’s Dividend Profile Compares to Peers.
Posted on 15 May 2018 | 6:01 am
Consolidated Edison (ED) is among the few largest regulated utilities in the country. So far in 2018, the stock has fallen almost 10%. Tax reforms, valuation concerns, and rising interest rates pulled utility stocks down in the last six months. The following chart shows the comparative stock price movement of Consolidated Edison along with broader utilities (XLU) (VPU).
Posted on 15 May 2018 | 4:31 am
The Energy Select Sector SPDR (XLE) , the largest equity-based energy ETF, rose 4.5% last week and is higher by nearly 9% over the past month. While some market observers attribute the energy sector's recent bullishness to the U.S. departing the Iran nuclear agreement, there are other factors at play. Some market participants believe energy stocks will show more responsiveness to oil’s rally.
Posted on 14 May 2018 | 1:34 pm
US bond market investors were relieved after the US Bureau of Labor Statistics’ April report, published May 10, indicated a lower-than-expected inflation growth rate. The latest inflation (VTIP) report indicated that core inflation increased at a slower pace of 0.1% in April, boosting hopes for a slower pace of rate hikes from the Fed. At its May meeting, the Fed stated that it would continue tightening and inflation (TDTT) would reach 2% in future months. The decline in bond yields after the disappointing jobs and inflation reports could be temporary, as inflation expectations may be fueled by higher crude prices.
Posted on 14 May 2018 | 1:05 pm
The weakness in utility stocks last week has pushed them below their 50-day moving average levels. The Utilities Select Sector SPDR ETF (XLU) is currently trading on par with its 50-day moving average and 4% lower than its 200-day moving average. It looks weak given its moving averages, and $52.53 is expected to act as a resistance for it going forward. It’s currently trading at $50.38.
Posted on 14 May 2018 | 11:55 am