Monday, January 23, 2017

Short Week but Historic

Monday, January 23, 2017 - This was certainly an historic week given the inauguration of our new President, Donald Trump and the ongoing reviews and confirmations of now President Trump's cabinet members.

With the short trading week and the uncertainty of political change, volume was significantly lower than normal as stocks dropped for the second week in a row. The Dow Jones Industrial Average fell .3%, the S&P 500 Index dropped .1% and the NASDAQ lost .3%. Company Earnings reports fueled most of the volume in the market this week.

Interestingly, only 3 Sectors ended the week in the red but two of them were pretty significant - the Financials and Health Care sectors took the biggest hit losing 1.5% each, while consumer Discretionary only took a small .04% loss. On the other side, Consumer Staples was the best performing sector with a gain of 2.06%. A big driver of the Consumer Staples gain was Procter and Gamble’s beating analyst estimates on Friday with profits of $1.08 per share versus expectations of $1.06 per share on sales of $16.85 B versus the $16.77 B expectation and an increase of 3% in the stock price.

Via the ETF Exposure report, we can see what ETFs have the greatest exposure to Proctor and Gamble and see how they performed this week. The 3 biggest holders of Proctor and Gamble are XLP, Consumer Staples Select Sector SPDR Fund, FSTA, Fidelity MSCI Consumers Staples ETF, and VDC Vanguard Consumer Staples ETF. They hold 12.37%, 10.9%, and 10.51% respectively and all 3 funds increased by roughly .5% this week.

This week in the ETFG Quant Movers, we have IJR, Ishares Core S&P Small-Cap ETF, BWV, iPath CBOE S&P 500 buywrite index ETN, and JDG, Wisdomtree Japan Dividend Growth Fund, that gained the most in our quant score.  IJR increased by 22.61 points, BWV increased by 18.88, and JDG increased by 14.18 points.  On the flip side we have HDEF, Deutsche X trackers MSCI EAFE High Dividend Yield Hedged Equity ETF, XLF, Financial Select Sector SPDR Fund, and VRP PowerShares Variable Rate Preferred Portfolio that lost the most points in our quant score. HDEF lost 23.25, XLF lost 20.52, and VRP lost 19.7.

This week in our Select List we have 2 funds that went from being unraked last week all the way to the number 1 spot in their respective Categories.  IJR, iShares Core S&P Small-Cap ETF in the North America category, and TAN, Guggenheim Solar ETF, in the Theme Category.

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