Monday, May 15, 2017

More Earnings,More Political Headlines

Monday, May 15, 2017 – Last week was a relatively quiet week, Volatility, as measured by the Chicago Board Options Exchange Index (VIX), fell to its lowest level in 15 years at 10.6. The market posted a small loss, the Dow Jones Industrial Average was down .5%, the S&P 500 down .3%, and NASDAQ was up by .3%. Only the Energy and Technology Sectors had positive weeks with .65% and 1.07% respective gains. Materials and Financials were the worst performing sectors with losses of 1.63% and 1.17%.

With never a shortage of political headlines in this new era, the week was headlined by President Trump unexpectedly firing FBI Director James Comey. Also, the week saw two presidential elections in France and South Korea with Emmanuel Macron and Moon Jae in France and South Korea winning their respective elections. Both victories were seen as positives for the global markets.

Earnings season continued as most of the big retail company’s earnings report missed expectations. The biggest miss last week was Macys. Macys reported an EPS of 24 cents vs. an estimate of 35 cents, revenue reported at $5.34 billion for the first quarter, versus an estimate of $5.47 billion.  Macy’s price dropped 17% in reaction to these earnings reports. In our ETF Global Equity exposure report, we can see what ETFs hold the greatest amount of Macys. WBIY, WBI power factor High Dividend ETF, RTH Van Eck Vectors Retail ETF, SPYD, S&P 500 High Dividend ETF have the highest concentration of Macys. WBIY has 1.56%, RTH has 1.17% and SPYD has 1.07%. As expected, all 3 ETFs had a loss for the week.

ETFG Select List - In our Weekly Select list, we had 3 new ETFs that went from not being rated the previous week to being in the top spot this week. This happens on average .75 times per week, so having 3 this week is a rare occasion. FNCF, iShares Edge MSCI Multifactor Financials ETF, was the top spot in the Financials category, INDF, iShares Edge MSCI Multifactor Industrials ETF, in the Industrials category and TCHF, iShares Edge MSCI Multifactor Technology ETF, in the Technology category.

ETFG Quant Movers - In our Quant movers section, we have  SCIF, Van eck Vectors India Small Cap Index ETF gaining 26.85% in their score, DON, Wisdom Tree Midcap Dividend Fund, gaining 23.17%, and RALS, Proshares RAFI Long/Short,  gaining 21.18%. The biggest droppers for the week were IVE,  IShares S&P 500 Value ETF, which lost 21.2%, SDOG,  ALPS Sector dividend Dogs ETF, dropped by 18.27%, and IAI, IShares US Broker-Dealer ETF, which score went down by 16.9%.

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