and Pierpont Securities LLC, the updated quarterly data on services showed that health care outlays declined at a 5.8% annualized rate from January through March, compared to the governments estimate of a 9.7% gain, reports Carlos Torres for Bloomberg . That data point should mean theres a downward revision, Daniel Silver, a JPMorgan economist, said in the article, referring to the overall U.S. gross domestic product number. The first quarter is going to be weaker. Stephen Stanley, chief economist at Pierpont Securities LLC, argues that second-quarter growth prospects are also negative as the government will have to re-evaluate how the Affordable Care Act, or so-called Obamacare, is affecting consumer spending. Stanley expects the downward revisions to push first quarter GDP numbers to minus 2%. In an environment of economic complacency, yet another downward revision to 1Q growth could cause enough of a psychological effect to move the markets, and evidence is mounting that the 2Q bounce will be much smaller than originally thought, Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC, said in the article.
ETF Chart of the Day: An Energetic Friend | ETF Trends
today, while the Hang Seng China Enterprises Index was little changed in Hong Kong . Chinas gross domestic product is projected to expand 7.3 percent this year, which would be the weakest pace since 1990, according to a survey of analysts in May. Growth slowed to 7.4 percent in the first quarter from a year earlier, compared with 7.7 percent in the previous period. Thats the lowest level on record for the measure known as skew. Implied volatility , used to track options prices, for the bearish contracts was 20.3 on June 13, compared with 18.7 for the bullish calls, the data show.
Why the Dow ETF is losing assets and ‘a little bit dangerous’ – The Tell – MarketWatch
Related Link: 4 ETFs Moving On The ECB Decision The second largest holding at a 13 percent allocation is Taiwan Semiconductor Manufacturing (NYSE: TSM ). The stock is up 22 percent this year and trading at the best level since 2000. When two stocks make up nearly one-third of an ETF, the ETF will tend to be heavily influenced by their performance. Both Intel and TSM have been market leaders and therefore SMH has been on a tear. The smaller SPDR S&P Semiconductor ETF (NYSE: XSD ) is also breaking out to new highs, though it does not boast a similar winning streak.
The Select Sector SPDR Technology ETF ( XLK ) on a YTD basis is currently not one of the best gainers but is one that I often recommended in the Charts in Play portfolio. The most recent position was stopped out in April for an 11.7% profit. Click to Enlarge The monthly chart of XLK shows that it broke through major resistance, line a, in February 2012 (point 1). It stayed in a 13-week trading range until April 2013 (point 1) when it completed its flag formation.
Look Inside Your Sector ETF Before You Buy – Forbes
Top holdings are of course XOM and CVX, which make up a good 28% of the portfolio, and there are 43 other names in the index outside of these too. SLB, COP, and EOG round out the top five, and it appears that some may be bracing for a potential reversal in the sector if not simply longs hedging a good sized position on the books into the weekend and near term. XLE has had notable inflows YTD, taking in >$3 billion and is now a >$12 billion fund. This ETF is also the largest Energy Equity ETF in the space by a mile as well, trumping the second largest VDE (Vanguard Energy, Expense Ratio 0.14%) which only has about $3.2 billion in AUM. XOM and CVX by nature are Value stocks, with 2.70% and 3.50% yields respectively, and managers that may have been fortunate to either buy the stocks outright or via an Energy ETF with sizable weightings towards them like an XLE for example, three, six, or twelve months ago, have seen not only steady dividends roll in but also impressive breakout price performance which has recently trumped the broad market indices. In any case, whether the future story is Bull or Bear, it seems like now is the best time to pay attention and stay focused not only on these stocks but the sector given the Iraqi situation as well as looming earnings season for XOM, CVX and related names, which is really not that far off (end great site of July), as well as the typical seasonality of Gasoline prices around Labor day.
Semiconductor ETF Up 3 Straight Weeks (SMH, INTC, XSD, OVTI)
And the exchange-traded fund tracking the Dow /quotes/zigman/627449/realtime DJIA probably isnt where you want to put your money. Investors have in fact been fleeing the SPDR Dow Jones Industrial Average ETF /quotes/zigman/588977/delayed /quotes/nls/dia DIA in the past five years, resulting in net outflows of $2 billion over that period even while total assets in U.S. ETFs have surged . As an investment, its really a pretty silly idea, said Matt Hougan, ETF.coms president of analytics and publications. He praised the Dow Jones Industrial Average for being the index that started indexing, but said its not up to modern standards.