ETF Outlook For Thursday, July 24, 2014:
The S&P 500 was able to eke out a small gain on Wednesday,
but it was enough to send the index to the best level ever.
The NASDAQ is closing in on a new decade high, and the Dow
lost ground as component Boeing (NYSE:
) pulled it down. The catalyst for higher stock prices has been
earnings with 78 percent of all companies that have reported
beating their earnings estimates.
Revenue beats are also strong, hovering above 65 percent.
More earnings Thursday morning and after the bell last night
should help the market open in the green. Adding to the positive
tone is better than expected economic numbers out of Europe.
Global X Social Media ETF (NYSE:
Shares of Facebook (NASDAQ:
) are soaring after it reported strong earnings after the bell
last night. The stock is set to open at the highest price ever
and bring along the entire niche sector.
Relaxed Regulations Highlight Nuclear ETFs
SOCL has been struggling the last few months, but after Fed
Chairman Janet Yellen called the sector overvalued it has been
moving higher -- go figure! Another top holding in SOCL is
), which is higher Thursday morning as well after some merger
news after the bell last night.
SPDR S&P Biotech ETF (NYSE:
The ETF led all other sector ETFs yesterday with a gain of 6.9
percent after one of its top 20 holdings, Puma Biotechnology
), soared 295 percent after receiving good news from the FDA.
Another holding and large biotech stocks, Biogen Idec (NASDAQ:
) surged 11 percent yesterday to help the other biotech ETFs that
did not have exposure to XBI. Investors must remember the
importance of knowing what is under the hood of the ETF they are
considering by looking at the stocks in the allocation.
iShares S&P Europe 350 Index ETF (NYSE:
The continent has struggled lately as the U.S. stock market
continues to hit new highs -- that is, until Thursday when the
PMI numbers for the region were released. The Eurozone PMI for
July came in at 54.0 versus a 52.8 estimate.
Germany also beat the estimate as well as France, which is now
closing in on breaking above the 50.0 level once again. Stocks
are higher across the pond, and IEV gives investors solid
exposure to the major Western European nations.
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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