ETF Outlook for Friday, April 25, 2014:
iShares MSCI Japan ETF (NYSE:
Japanese core inflation for March came in at 1.3 percent, the
same as the prior month, but below estimates of 1.4 percent. The
data was viewed as positive because it could open the door to
more bond purchases from the Bank of Japan.
The inflation target for the central bank is two percent and
holding steady at 1.3 percent is far enough below the goal to
force the hand of the central bank. The news was enough to help
the Japanese stock market close with a slight gain of 0.2 percent
as much of the rest of the world was trading lower.
KraneShares China Internet ETF (NYSE:
Chinese Internet giant Alibaba is considering raising its IPO
to $20 billion, which would make it the largest U.S. IPO in
history, above the $19.7 billion that Visa (NYSE:
) raised in 2010.
ETFs Suffering from Facebook
The news could be good for the company's peers that are
represented in KWEB. The ETF has struggled the last six weeks as
money as moved out of the high-flying tech stocks. Weakness
overnight in China will likely lead to early selling in KWEB,
however longer-term the Alibaba news could be a positive.
First Trust Dow Jones Internet ETF (NYSE:
) shares are falling this morning after reporting mixed quarterly
earnings last night. Net income grew from $82 million to $108
million, however the cost of earnings the money remains high.
Sales of $19.74 billion grew by 23 percent and adjusted EPS
came in at $0.23, a penny below estimates. With AMZN making up
7.5 percent of FDN and the top holding in the ETF, the shares are
also lower in early trading and will be fighting an uphill battle
SPDR Financial Sector ETF (NYSE:
More fines could be possible for Bank of America (NYSE:
) after it was leaked last night that a $13 billion settlement
may be in the works regarding mortgages during the financial
The news has the stock down one percent in
and weighing on the entire sector as the government has another
eight lenders under investigation. The entire situation is nearly
laughable as the government was just as involved in the financial
crisis as the banks, yet they choose the fines on the banks. Look
for XLF to open lower and struggle today.
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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