ETF Outlook for Tuesday December 10, 2013
Global X Social Media ETF (NYSE: SOCL )
Social media company, surged 9.3 percent Monday on no signs of a big news release or changes by any of the sell-side analysts. The move was on big volume and has the stock close to the post-IPO high of $50.09.
SOCL has over 4 percent in TWTR and it is the tenth largest holding in the ETF. Yesterday SOCL gained 0.9 percent and closed at a new six-week high. More follow through from TWTR could help spark the entire niche sector and push SOCL to test the yearly high set in October.
First Trust NASDAQ Global Automobile ETF (NYSE: CARZ )
The U.S. government has finally sold its last shares of General Motors (NYSE: GM ) it had received during the auto bailout. The final sale brought in a total of $9.2 billion, bringing the total recovery from the bailout to $39 billion. Considering the Treasury invested $51 billion in the automaker, the government ended with a huge loss of $11 billion.
As far as GM stock is concerned, it was trading higher by 1 percent after hours yesterday following a 1.8 percent gain during regular trading hours. CARZ finished Monday with a minimal gain of 0.1 percent. Over the last few months the ETF has been moving sideways, but it could be revived with the recent breakout in GM's share price.
PowerShares DB U.S. Dollar Bearish ETF (NYSE: UDN )
The Japanese Yen continues to slide, but nearly every other foreign currency has been increasing in value versus the greenback. This has the U.S. Dollar Index at its lowest level in a month. UDN will move in the inverse direction of the index and therefore is hitting a new one-month high to begin the week. Once the taper begins the general consensus is that it will be a boost to the value of the U.S. dollar, however the talk of taper sooner rather than later has not had that affect on the currency.
First Trust IPOX 100 Index ETF (NYSE: FPX )
This is a busy week for IPOs cramming to go public before the end of the calendar year. There are 12 companies set to begin trading on a major exchange in the next few days led by the world's largest hotel chain, Hilton Worldwide (NYSE: HLT ). Another big name is Aramark (NYSE: ARMK ), the third largest provider of food and facilities management.
FPX tracks an index of 100 recent IPOs and hit a new all-time high yesterday with a gain of 0.5 percent. Another ETF that is new to the scene is the Renaissance IPO ETF ( IPO ), which was up 0.6 percent yesterday. Both will look to add the new IPOs in the weeks ahead and could see further gains on a strong IPO market.
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