ETF Outlook for Wednesday February 19, 2014
iShares U.S. Pharmaceutical ETF (NYSE:
More M&A activity in the pharmaceutical sector had the
health care and drug ETFs breaking out to new highs. IHE rallied
three percent Tuesday and is now up 41 percent in the last 12
months, nearly double the return of the S&P 500. The
consensus on Wall Street is that the trend will continue for the
sector even though it has outpaced the overall market.
Market Vectors Gaming ETF (NYSE:
One of the sectors lagging the market has been the gaming and
casinos stocks. BJK is trading nearly five percent from its
recent high while the S&P 500 is within a few ticks of a new
all-time high. The sector has been hit with concerns over both
Las Vegas and Macau and their future growth. This morning one of
the ETFs top ten holdings reported solid numbers that could help
attract money into the ETF.
#PreMarket Primer for February 19: Tesla Earnings
After The Bell
MGM Resorts (NYSE:
) reported a revenue increase of 13 percent in the fourth
quarter, mainly driven by strong numbers in China. The key to the
future of the gaming sector is China and growth outside the U.S.
and therefore the numbers this morning from MGM are even more
important to potential investors.
iShares Barclays 20+ Year Treasury Bond ETF (NYSE:
Bonds are up slightly this morning ahead of the FOMC minutes
that will be released this afternoon. The yield on the 10-year is
lower by 3 basis points to 2.68 percent and TLT and the other
bond ETFs are set to open higher.
TLT is finding some support around the $106 area and as long
as it holds above that level it could remain in the $106-$110
trading range. Most analysts expected interest rates to surge
higher in 2014, however the taper has not had that affect and TLT
has held its own. On the flip side, if $106 is breached it would
be a sign yields are set to move higher.
KraneShares CSI China Internet ETF (NYSE:
A 4.7 percent surge yesterday sent the niche emerging market
ETF to a new high. The rally over the last two weeks has now
exceeded 15 percent as investors shrug off the China concerns and
look for high growth companies around the globe. The top holdings
are the who's who in Chinese internet and money was flowing into
the sector yesterday.
Some of the top holdings that helped the ETF outperform were
Qihoo 360 (NASDAQ:
), Baidu (NASDAQ:
), and Ctrip.com (NASDAQ:
).The key to investing for the long-term in a niche sector is to
buy into weakness when others are running for the exits, not to
chase the performance of yesterday.
(c) 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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