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Nvidia Hits High As Techs Rally; 2 Hot Stock Plays In Buy Zone

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Key U.S. stock indexes climbed to new highs Friday afternoon as the FANG stocks led techs higher.

[ibd-display-video id=2102289 width=50 float=left autostart=true]PowerShares QQQ Trust ( QQQ ) led with a 0.4% gain, while SPDR Dow Jones Industrial Average ( DIA ) and SPDR S&P 500 ( SPY ) added 0.2% each. Markets overseas rallied as iShares MSCI Emerging Markets ( EEM ) soared 0.9% and iShares MSCI EAFE ( EFA ) rose 0.5%.

Metals miners, semiconductor and retail were among top gainers in the stock market today . SPDR S&P Metals & Mining (XME) soared 1.3% as it continues building a handle with a 33.53 buy point. VanEck Vectors Semiconductor (SMH) rose 0.7%; Technology Select Sector SPDR (XLK) added 0.5%. Graphics chip designer Nvidia (NVDA) picked up 1.6% to a new high, boosted by a price target hike from Needham. Shares are extended from a 174.66 flat-base entry.

The so-called FANG stocks: Facebook (FB), Amazon (AMZN), Netflix (NFLX) () and Alphabet (GOOGL) () all scored gains.

Most gold and oil plays were higher along with the underlying commodity prices.

Utilities, banks and health care lagged.

Emerging Markets On Fire

Emerging markets are still red hot. Here are two funds that offer access to those countries - and are in buy range, to boot.

Schwab Fundamental Emerging Markets Large Company Index (FNDE) is in a buy zone from a late-September bounce off its 50-day moving average line. It advanced as much as 10% from a mid-July rebound off the line to its Sept. 18 intraday high.

The $1.6 billion fund, which marked its fourth anniversary in August, tracks the Russell RAFI Emerging Markets Large Company Index. It aims to provide exposure to big-cap companies in emerging markets and weights them based on fundamentals such as sales, retained operating cash flow, and dividends plus buybacks, according to Morningstar Direct.

Per Schwab's website, FNDE's biggest country weightings as of June 30 were South Korea at 20%, China 17%, Taiwan 13%, and Brazil and Russia at about 12% each. Energy accounted for its top sector weight, 22%, followed by 20% apiece in financials and information technology, and 12% in materials.

Its top holdings as of Oct. 11 included Korea's Samsung Electronics, Russian natural gas giant Gazprom and China Construction Bank.

FNDE's 23.1% year-to-date gain outpaces the S&P 500's 15.9% return. Its average annual return for the past three years is 6.6%, vs. the benchmark index's 12.6% advance. The EPS carries a 0.39% expense ratio.

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PowerShares FTSE RAFI Emerging Markets Portfolio (PXH) is also in buy range after a recent bounce off its 50-day line. Shares rose 12% from a mid-July rebound off the line to a Sept. 11 high.

The 10-year-old fund, which tracks the FTSE RAFI Emerging Markets Index, has attracted $965.4 million in assets. The index is comprised of the largest emerging market stocks that are selected based on book value, cash flow, sales and dividends.

China represented the biggest country allocation as of Oct. 11 at 28.5%. Brazil, Taiwan and Russia were next at 14%, 14% and 9%, respectively. The biggest sector weightings were financials at 31%, energy with 18%, information technology at 11% and materials at 9.5%. Top names included China Construction Bank, Industrial & Commercial Bank of China, and Taiwan Semiconductor Manufacturing (TSM).

PXH gained 23.5% YTD through Oct. 11 and has a three-year average annual return of 5.9%. It bears a 0.49% expense ratio.

Of Thursday's picks, iShares MSCI South Korea Capped (EWY) remains in buy range after breaking out past a 71.88 flat-base entry. Meantime, iShares MSCI Poland Capped (EPOL) is just shy of a 27.83 flat-base buy point after easing Thursday.


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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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