Apple, Caterpillar Fuel Dow To Record; Bitcoin Euphoria Fading?

Multiple stacks of coins on top of a graph Credit: Shutterstock photo

Stocks added to their gains Wednesday after the Fed raised interest rates by a quarter percentage point as expected.

[ibd-display-video id=3006712 width=50 float=left autostart=true] SPDR Dow Jones Industrial Average ( DIA ) rose 0.5%, PowerShares QQQ Trust ( QQQ ) added 0.3% and SPDR S&P 500 ( SPY ) climbed 0.2%. Emerging markets outperformed, with iShares MSCI Emerging Markets ( EEM ) jumping 1.2%.

Caterpillar ( CAT ), Nike (NKE) and Apple (AAPL) boosted the Dow Jones industrial average to a new high. Apple rose 0.7%. It's extended from a 160.97 cup-with-handle buy point. The iPhone maker announced a $390 million investment in Finisar (FNSR), a laser sensor supplier.

Gold miners, telecom and retail led the upside among sector funds in the stock market today . VanEck Vectors Junior Gold Miners (GDXJ) and VanEck Vectors Gold Miners (GDX) rallied more than 3% each. SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) gained 0.8% apiece.Gold futures rose 0.5% to $1,245 an ounce. Energy and banks lagged.

Bitcoin Investment Trust (GBTC) pared its gain 3% from as much as 13%. The cryptocurrency's price rose to as high as $17,384.56 earlier and was recently trading around $16,440, according to CoinDesk . CBOE 's (CBOE) Bitcoin futures extended their loss to 8%. The SEC recently advised caution when investing in Bitcoin and other cryptocurrencies.

Double Your Dividends?

If you miss a buy opportunity the first time, a second one could be lurking just around the corner.

First Trust Dow Jones Global Select Dividend (FGD) set up a chance to buy shares on Thursday as it bounced off its 50-day moving average . It's still in potential buy range from the rebound. But it's also close to a 26.20 cup-base entry, which sets up another opportunity. The ETF has made small gains in between some of the bases it's cleared as it advances along the 50-day line.

The $497.7 million fund, which tracks the Dow Jones Global Select Dividend Index, marked its 10th anniversary last month. To be considered for inclusion in the index, companies must pay a current dividend, have a current-year dividend-per-share ratio greater than or equal to its five-year average ratio, and have a five-year average payout ratio of 60% or less for U.S. and European companies and 80% or less for all other countries. They must also have a three-month daily average trading volume of at least $3 million.

The resulting stocks are ranked by dividend yield. The top 100 highest-yielding stocks make the index. Weightings for individual holding are capped at 10%.

Greater Europe accounted for nearly 50% of assets, with the U.K. making up about 14% of that, according to Morningstar Direct. North America and Greater Asia represented roughly 25% each. FGD's top holdings as of Dec. 11 included Waddell & Reed Financial (WDR), Guess (GES) and Royal Dutch Shell (RDSA). Finland's Fortum, the U.K.'s easyJet and France's Natixis are also among its biggest holdings.

IBD'S TAKE:Making money catching ETF uptrends requires knowledge about how to read charts. You can learn how at IBD University .

The fund's year-to-date return of 15.7% through Dec. 12 trails the S&P 500's 21.1% gain. Its average annual returns over the longer haul also lag the benchmark index. But its 3.9% annualized dividend yield is well above the S&P 500's average 1.8% payout.

The ETF carries a 0.58% expense ratio.

Tuesday's pick, iShares MSCI EAFE (EFA), remains in potential buy range from a recent rebound off its 50-day line.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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