Sunday , 20 August 2017

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Index ETFs Punch Up As Intel Beats; Banks In Focus

M ajor index ETFs surged back bullishly after a choppy start Thursday, but didn’t quite erase Wednesday’s deep losses. Oil nudged higher even as it continues to trade near multiyear lows. West Texas Intermediate crude settled just above $31 a barrel. Stocks gained as the key commodity showed hints of recovery after eight losing sessions.

All 11 Select SPDR ETFs tracking S&P 500 sectors gained Thursday. Energy and biotech climbed most.

All but two of the 30 blue-chip stocks in the Dow Jones Industrial Average advanced.

Chevron ( CVX ) andExxon Mobil ( XOM ) rose 5% each, andApple ( AAPL ) andIntel ( INTC ) more than 2% each.

Intel fell nearly 5% in after-hours trading despite reporting better-than-expected earnings and sales.

There was more corporate earnings news today.

SPDR S&P Bank ( KBE ) popped 1.1% on the stock market today . The ETF holds 62 equal-weighted stocks, but shuts out nonbank financial institutions, such as REITs, insurance companies and pure-play investment banks.

KBE slumped sharply in January along with the broad stock market. It is sitting 18% off its 52-week high of 37.28.

Its holdings include JPMorgan Chase, the nation’s largest bank, which early Thursday reported double-digit bottom-line growth in the fourth quarter. The firm benefited from lower legal expenses and a strong showing from its consumer bank unit.

Earnings were up 10.9% from a year earlier, and revenue rose 0.8% to $23.7 billion, both topping estimates.

More banks are set to report quarterly and full-year earnings in the coming days, marking their first reports after the Fed’s historic decision to raise interest rates by 0.25% in December.

Wells Fargo (WFC) andCitigroup (C) report Friday;Bank of America (BAC) andMorgan Stanley (MS) are slated for Tuesday; andGoldman Sachs (GS) is due Wednesday.

Besides JPMorgan Chase, KBE also holds Wells Fargo, Citigroup and Bank of America.

Financial Select Sector SPDR (XLF) advanced 0.9% in above-average volume.

Despite gains Thursday, the broad U.S. stock market is an unsettled state.

Anxiety about the relentless commodity slump and volatility out of China precipitated a sharp sell-off in January.

The Dow and Nasdaq Composite indexes are 10% and 11% off their 52-week highs, respectively. In stock parlance, that marks correction territory.

The S&P 500 is 9% off its old high.

Small-cap stocks have fared worse: The Russell 2000 is 21% off its June high, indicating a bear market.

Gold And Dollar

Haven assets got a setback as investors piled into stocks Thursday.

Gold ETFs sliced below their 50-day lines as the dollar gained. They are 17% off their one-year highs, set last January.

ETFs tracking the value of the euro, yen and British pound vs. the greenback all posted losses.

10 Bellwether ETFs:

Here’s a look at how the major exchange traded funds tracking various asset classes performed today.

Following daily ETF market action can be key to successful investing :

SPDR S&P 500 (SPY), +1.6%, RS 64

PowerShares QQQ (QQQ), +2.1%, RS 71

SPDR Dow Jones Industrial Average (DIA), +1.4%, RS 62

IShares Core S&P Mid-Cap (IJH), +1.1%, RS 49

IShares Russell 2000 (IWM), +1.4%, RS 45

IShares MSCI EAFE (EFA), +1.3%, RS 52

Vanguard FTSE Emerging Markets (VWO), +1.3%, RS 31

SPDR Gold Shares (GLD), -1.6%, RS 62

IShares Core U.S. Aggregate Bond (AGG), 0%, RS 78

PowerShares DB U.S.$ Bullish (UUP), +0.3%, RS 86

Follow Aparna Narayanan on Twitter @IBD_ANarayanan .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Index ETFs Punch Up As Intel Beats; Banks In Focus Reviewed by on . M ajor index ETFs surged back bullishly after a choppy start Thursday, but didn't quite erase Wednesday's deep losses. Oil nudged higher even as it continues to M ajor index ETFs surged back bullishly after a choppy start Thursday, but didn't quite erase Wednesday's deep losses. Oil nudged higher even as it continues to Rating:
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