Despite Global Panic, U.S. Markets Stay Strong

Monday, February 10, 2020 - The deadly Coronavirus that has caused widespread panic throughout the world, as containing it is proving difficult, was not able to damage the U.S. markets this week. Another strong week came our way, as the Nasdaq Composite, Dow Jones Industrials and S&P 500 were up 4.04%, 3%, and 3.17% respectively. Perhaps in this week of global turmoil, especially in China, investors may be looking towards U.S. companies as a safe haven. In addition, was another strong showing for the economy in the form of the Job Report for January. The report showed us that employers added around 225,000 jobs the previous month. Overall, the three indices were at record highs on Thursday and it seems, for the short term, that the epidemic is not going to stop the U.S. markets’ momentum.

ETFG Quant Movers - Those ETFs who have had the largest weekly change in their respective, overall ETFG Quant ratings.

ETFG Quant Winners: On to the ETFG Quant Movers table, we can see this week’s five biggest % Gainers were PNQI, LDRS, JKD, JPLS and SKYY. Worth noting is that the top three ETFs on this list either actively invest or track an index that reflects the overall US economy. Whether that be Large Cap companies (JKD) or an index that tracks the top ranking ETFs (LDRS), what our ETFG Quant Model is showing is that the US economy showed well this week against the rest of the world and these ETFs that are heavily invested in it reaped the benefits.

ETFG Quant Losers: On the % Losers side this week, FNDE, PWV, EDIV, QDEF, FGD led the way. Two of the top 3 losers, FNDE and EDIV, are both emerging markets ETFs, which is interesting as China is considered an emerging market. Perhaps our model is showing us that the biggest losers this week can be linked to ETFs that have large interest in China, which is dealing with the Coronavirus epidemic.

ETFG Weekly Select List - Finally, we’ll take a look at the ETFG Weekly Select List and compare the last two weeks’ worth of data. Looking at the Sector portion of our select list, we can see our biggest winner this week was XME, from the Basic Materials focus, as it moved all the way from last place 5^th to 1^st place this week. Other notable winners include FIDU from the Industrials focus, moving to 1^st place this week from 3^rd place the previous week, and FNCL from the Financials focus, which had an impressive move from 4^th place to 2^nd place.

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