Monday, July 17, 2017

Summer Time Highs

Monday, July 17, 2017 - Last week was again another good week for the market - the S&P 500 and Dow Jones Industrial Average both reached record highs this week. The Dow Jones ended up gaining 1%, S&P 500 gained 1.4%, and NASDAQ did the best with a 2.6% increase. This week every sector posted gains except financials which was down by .52%.  Technology, Energy, and Materials lead the way with 3.36%, 2.17%, and 2.05%.

Janet Yellen made her semiannual testimony in front of Congress on Wednesday reiterating that the Fed was not going to tighten monetary policy. She expects a tightening labor market to lead to increased inflation. This was despite the inflation data released on Friday which reflected that inflation remained flat in June.

Trading volume on Thursday slowed down in anticipation of Friday, the start of the second quarter's earnings season. Several major banks released their 2Q earnings of which one was JP Morgan Chase - we'll skip the already well-publicized CEO rant. Their 2nd quarter earnings rose by 13% on Net Income of $7 billion. EPS were $1.82, outperforming the $1.59 estimated by analysts. The ETF Global exposure report shows that the biggest holders of JPM are  IYG, iShares U.S Financial Services ETF, XLF, Financial Select Sector SPDR Fund, and FNCL, Fidelity MSCI Financials Index ETF.  These products hold 12.01%, 10.79%, and 8.98% respectively. All 3 funds had roughly the same performance of .3% for the week.

ETFG Weekly Select List features the 5 most highly-rated ETFs by Sector, Geographic Region and Strategy as ranked by the ETFG Quant model. This week we had one ETF, JHMA John Hancock Multifactor Materials ETF, in the Basic Materials category move from being unranked last week to the top spot this week.  JETS U.S. Global Jets ETF was another big mover in the industrial category moving from 4th to 1st this week.

ETFG Quant Movers - the biggest movers this week were HAHA, CSOP China 300 A-H Dynamic ETF which had a  score increase by  19.15%, EPOL iShares, MSCI Poland Capped ETF which increased by  18.73%, and VXUS, Vanguard Total International Stock ETF which increased by 18.37%. On the other side of the spectrum, we had SEA, Guggenheim Shipping ETF, have the score dropped by 30.28%. XAR, SPDR S&P Aerospace & Defense ETF, lose 17.34%, and ACTX Global X Guru Activist Index 16.25%.

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