ETF Outlook for Tuesday December 17, 2013:
PowerShares Leisure & Entertainment ETF (NYSE:
Starbucks announced that one in every ten Americans
received a gift card last year an on one single day before
Christmas over 2 million cards were sold. By bringing in upwards
of $16 billion through 450 million cards over the years it is
clear the program works for the company. SBUX is expecting sales
this year to exceed that of last year and it could be another
boost to the already strong year for the stock.
PEJ has a 4.7 percent allocation to SBUX and 2.6 percent in
competitor Dunkin' Brands. PEJ is setting up nicely for a bounce
after a small pullback to begin the month of December.
iShares U.S. Medical Devices ETF (NYSE:
Leerink Swann, a firm specializing on health care companies
released a research note on the medical device sector. Some of
its top names for 2014 in what they call the MedTech space
include Heartware, Covidien, St. Jude
Medical and Intuitive Surgical.
All four stocks are in IHI with the last three falling into
the top eight holdings for the ETF. In the face of potentially
higher fees for medical devices from Obamacare, the ETF has been
able to continue moving higher, hitting an all-time high a couple
weeks ago. If the ETF can hold support at $88 during the current
pullback it will be yet another buying opportunity for IHI.
SPDR Dow Jones Industrial Average ETF (NYSE:
Two of the top five holdings in the ETF are moving higher
pre-market after the release of positive news. Shares of 3M
Company are higher by 2.5 percent after raising its dividend
by 35 percent and offering in-line guidance for 2014. The yield
on MMM increases from 2.0 percent to 2.6 percent.
The S&P 500's Biggest High Dives of 2013
The shares of Boeing are also on the move by more than 2
percent after increasing its dividend by 50 percent and
increasing its stock buyback program by $10 billion. The dividend
yield on BA now stands at 2.1 percent. DIA, which tracks the Dow
quotes investors follow on the internet and television, is
trading 1.2 percent below an all-time high and if the pattern
continues the ETF should be see highs in the coming week.
First Trust NASDAQ Global Auto Index ETF (NYSE:
A slew of positive news out of General
Motors and Ford, the past few days along with positive
industry-wide news should have CARZ on the move higher. The ETF
has not been able to track good volume recently even though the
news flow for the sector has been improving. GM is at a new
post-bankruptcy all-time high and F has rallied over 3 percent in
the last few days.
The Japanese automakers have been struggling, but the
turnaround from the short-term pullback looks like it is on the
horizon. The combination of bullish action in the U.S. auto
stocks combined with a rebound in the Japanese auto stocks should
lead to a breakout in CARZ in the coming week.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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