Arnott's Debut ETF Bets on Index Rejects
The smart beta innovator's new fund will buy stocks dropped from the S&P 500 and Russell 1000.
The smart beta innovator's new fund will buy stocks dropped from the S&P 500 and Russell 1000.
Mortgage rates are unchanged this week, Freddie Mac reported, the 30-year fixed-rate mortgage sitting at 6.35%. The 30-year rate has fallen by 0.77% from this time last year. Yahoo Finance housing reporter Dani Romero details the latest mortgage print and how the figure is still a deterrent for prospective homebuyers. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Luke Carberry Mogan.
We have highlighted ETFs from sectors set to explode on supersized Fed rate cut bets.
Signs of a cooling labor market last month pushed major U.S. stock averages lower on Thursday, ahead of the highly anticipated August jobs report set for release on Friday. Private sector job creation came in at 99,000 for August, according to ADP data, marking the slowest pace of growth since January 2021 and missing the forecast of 140,000. A stronger-than-expected services sector activity sentiment for August offered some relief to broader recession concerns, but an employment subindex bolste
The chip stock giant reports earnings after Thursday’s market close.
Investors are moving to defensive corners of the market (^DJI, ^IXIC, ^GSPC) on Thursday as fresh data sparked some concerns of too much weakness in the labor market. SoFi head of investment strategy Liz Young Thomas joins Morning Brief to discuss the market's reaction to the data and how investors can best position their portfolios as the Federal Reserve begins its rate-easing cycle. Thomas notes that "equities are still cheering for the beginning of this rate-cutting cycle" as the Fed eyes a soft landing. She explains that easing rates will likely benefit cyclical areas of the market, like small caps (^RUT), financials (XLF), real estate (XLRE), and industrials (XLI). However, she warns that "it would be premature to assume that we have secured a soft landing." Investors should still have some exposure to areas of the market that benefit from a steepening yield curve. Thomas points to gold (GC=F) as a good option as the global currency is experiencing volatility. As all eyes are on Friday's August jobs report, Thomas believes that if the data comes in cooler than expected, the market will react negatively and will likely experience a sell-off of mega-cap names. She adds that utilities are "not just a purely defensive play" at this stage, as they are a beneficiary of the AI trade. In addition, she explains that consumer staples (XLP) — another traditional defensive play — are overbought currently. If economic data continues to cool during the Fed's cutting cycle, she expects financials and real estate to continue to slow. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Melanie Riehl
Although the tech sector (XLK) has suffered in recent weeks, there are plenty of investing strategies and plays that could help investors find their footing amid trending volatility. Morningstar Chief US Market Strategist David Sekera joins Market Domination to give insights into current market trends. Sekera points out how utilities (XLU) may be an undervalued sector: "On a valuation basis, [utilities were] pretty much as undervalued according to our valuations as they had been over the past decade. But that sector is up about 22% year to date, or even more than that off of those lows from last October. So, at this point, I think it's time to move to an underweight there." Tying utility demands back into AI, Sekera finds utilities to be "the big story this year" as the sector becomes more like a "second derivative of AI. "Of course, electricity demand will be increasing as more AI comes out there because AI takes many times more power to run than traditional computing," Sekera says. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Nicholas Jacobino
Stock markets (^DJI, ^IXIC, ^GSPC) are off to a bumpy start at the beginning of September trading, with Big Tech leading the downturn. Charles Schwab chief global investment strategist Jeffrey Kleintop joins Morning Brief to discuss more on the market dynamics he sees playing out. Kleintop advises investors to "watch the [Japanese] yen for clues on the tech trade." He notes that the trade dynamics of the yen and Big Tech are interconnected among investors, and this can be observed in the continued tech sell-off and the yen's rise Wednesday morning. Kleintop also suggests that the unwinding of the yen carry trade may not be finished and could persist throughout the remainder of 2024. However, Kleintop says the tech sector unwind "benefits sectors that are undervalued and under-owned," recommending areas like financials (XLF), energy (XLE), and materials (XLB) "What we're seeing is the average stock in the S&P 500, look at the equal-weighted index (^SPXEW), is outperforming the capitalization-weighted index. So we're seeing strength outside of tech, and that's been our story about the second half of the year — a broadening of the market," he tells Yahoo Finance. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith
Despite NVIDIA stock's previous meteoric rise, recent market conditions have led reassessment among Tiger 21 members regarding the sustainability of Nvidia's success over the next decade.
Nvidia stock tanked more than 9% on Tuesday as tech led the market losses.