Why this tech ETF could be a Buy heading into next month

From Andrea Kramer:

The U.S. stock market is set to wrap up a banner June, with the S&P 500 Index (SPX) fresh off all-time highs. What's more, several sectors could continue to shine in July, if recent history is any guide. In fact, the Technology Select Sector SPDR Fund (XLK) emerged as one of the best exchange-traded funds (ETFs) to own next month, having ended July higher 100% of the time in the past 10 years.

NYSE:XLK June 28, 2019 1:14pm

Has the semiconductor sector hit its low for 2019?

semiconductor
From Puja Tayal:

Semi stocks hit the bottom in December 2018

NYSE:SMH June 18, 2019 7:15pm

Goldman Sachs says tech stocks are too expensive

goldmansachs
From Yun Li:
KEY POINTS
NYSE:XLK June 17, 2019 6:38pm

Semiconductor stocks fall amid worsening US-China trade tension

From Fred Imbert: Stocks fell on Friday after a sharp decline in Broadcom shares put other chipmakers and the broader tech sector under pressure.
NYSE:SMH June 14, 2019 4:49pm

Why does this analyst believe the recent weakness in semiconductor stocks won’t last?

From Lizzy Gurdus: This semi slump will be short-lived, according to one market watcher.
NYSE:SMH June 13, 2019 3:41pm

Tech stocks have their best 6-day stretch since 2012

stock photo chart
From Sanghamitra Saha:

Technology stocks are on fire, having logged their best six-day stretch in seven and a half years, per Dow Jones Market Data, as quoted on The Wall Street Journal. Microsoft Corp. MSFT, Apple Inc. AAPL, Amazon.com Inc. AMZN, Facebook Inc. FB and Alphabet Inc. GOOGL injected about $330 billion in market value together over the past five trading sessions.

NYSE:XLK June 12, 2019 3:08pm

Why this analyst believes semiconductor stocks will continue to fall

From Patti Domm:
KEY POINTS
NYSE:SMH

Are investors ignoring the major warning signs in FANG stocks?

From J.R. Reed:
NYSE:XLK June 5, 2019 6:13pm

Federal Reserve Chairman Powell suggests the Fed is prepared to cut rates, if needed

From Jeff Cox: Federal Reserve Chairman Jerome Powell said the central bank is watching current economic developments and will do what it must to keep the near-record expansion going.
Financial markets have been nervous lately over an escalating trade war that has spread from China and now could include Mexico. At the same, government bond yields are behaving in a way that in the past has been a reliable recession indicator. Powell began a speech Tuesday in Chicago by addressing "recent developments involving trade negotiations and other matters." "We do not know how or when these issues will be resolved," he said in prepared remarks. "We are closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2 percent objective." Powell's comments came at the "Conference on Monetary Strategy, Tools and Communications Practices," a kickoff for an examination the Fed is conducting this year about the tools it has to meet its goals as well as the way it is communicating its actions to the public. He did not address any other specific issues relating to current conditions. Market are broadly expecting the policymaking Federal Open Market Committee to cut its benchmark rate twice before the end of the year in response to current conditions. For his part, Powell has stuck to the position that the Fed remains data dependent. The most recent FOMC statement, from its May meeting, indicated that the committee is taking a patient stance toward policy changes at conditions evolve.  
Looking down the road
In his speech Tuesday, Powell took a longer view, outlining the challenges the Fed faces ahead for when the next crisis hits. The current low rate environment leaves the Fed little room before it hits the zero lower bound, or the point where the Fed's nominal benchmark rate can't be lowered much more. "In short, the proximity of interest rates to the ELB has become the preeminent monetary policy challenge of our time, tainting all manner of issues with ELB risk and imbuing many old challenges with greater significance," he said. The Fed faces a problem with inflation, which has yet to sustain at the central bank's 2% goal. Powell said persistently low inflation could lead to "a difficult-to-arrest downward drift" in expectations. At issue for the future are three main considerations: where current policy is enough to address inflation misses; if the Fed's toolkit of rate moves and asset purchases is enough to achieve the dual mandate of full employment and price stability, and how best to communicate policy to the public. One consideration is whether the "dot plot" of individual FOMC members' rate projections is helping. Powell suggested that during times of stress, the closely followed "median dot" actually could become the "least likely outcome." Powell said the tools used during the crisis -- near-zero rates and asset purchases that took the balance sheet to more than $4.5 trillion -- are likely to be deployed again. "Perhaps it is time to retire the term 'unconventional' when referring to tools that were used in the crisis. We know that tools like these are likely to be needed in some form in future ELB spells, which we hope will be rare," he said.

The Technology Select Sector SPDR ETF (XLK) was trading at $72.34 per share on Tuesday afternoon, up $1.71 (+2.42%). Year-to-date, XLK has gained 13.47%, versus a 4.92% rise in the benchmark S&P 500 index during the same period. XLK currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 79 ETFs in the Technology Equities ETFs category.
This article is brought to you courtesy of CNBC.
NYSE:XLK June 4, 2019 12:37pm

Regulation fears cause Nasdaq to sell-off

Technology Sector
From Fred Imbert: Stocks fell on Monday, June's first day of trading, amid reports that the U.S. government is planning to target a host of big tech companies with antitrust and business practice probes. Shares of Alphabet, Amazon, Facebook and Apple all weighed on the market during Monday's session.
NASDAQ:QQQ June 3, 2019 4:18pm

Which semiconductor stocks are Buys at these reduced prices?

From Timothy Smith:
NYSE:SMH May 29, 2019 6:46pm

The semiconductor sector is down 12% in May, is it ready to rebound?

ETF
From Lizzy Gurdus: The chip carnage on Wall Street isn't stopping one trader.
NYSE:SMH May 22, 2019 3:49pm

The semiconductor sector plummets on news of government restrictions concerning Huawei

plunge
From Yun Li:
KEY POINTS
  • Shares of chip suppliers are under pressure following the Trump administration's restrictions on doing business with Huawei.
  • Google has suspended business activity with the Chinese giant. Other Huawei suppliers, including Qualcomm, Broadcomm and Intel, reportedly told employees they will not sell to the Chinese firm until further notice.
  • U.S. chip suppliers are losing a big customer as Huawei purchases $20 billion of semiconductors each year, according to an Evercore estimate.
A sell-off in chip stocks intensified Monday following a report that semiconductor makers are cutting ties with Huawei following restrictions imposed by President Donald Trump's administration.
The U.S. Commerce Department last week blacklisted Huawei and effectively halted its ability to buy American-made parts and components. In wake of the restrictions, Google has suspended business activity with the Chinese giant. Other Huawei suppliers, including Qualcomm, BroadcomIntel and Xilinx, told employees they will not sell to the Chinese firm until further notice, according to Bloomberg News.
U.S. chip suppliers are losing a big customer as Huawei, the world's largest provider of telecom equipment, purchases $20 billion of semiconductors each year, according to an Evercore estimate.
Shares of Xilinx tumbled nearly 5% on Monday, while Qualcomm stock dropped nearly 5%. Shares of Analog Devices, Broadcom, Advanced Micro Devices are all under pressure following the Huawei ban. The VanEck Vectors Semiconductor ETF are down more than 3% on Monday, almost 15% below its intraday all-time high. All but one component of the ETF is correction levels or worse as of Monday and almost half the 25 stocks is in bear market levels. "Let's be clear - we are talking tens of billions of dollars impact," said C.J. Muse, senior equity research analyst at Evercore, in a note on Saturday. "Loss of this business would slow down investments by U.S. chipmakers, thereby reducing the competitiveness of the U.S. semiconductor industry - and that is a national security issue that the U.S. government needs to consider as well." U.S. restrictions could particularly hurt companies that have meaningful revenue exposure to 5G and the Chinese market, according to RBC analyst Mitch Steves. Analog Devices has 12.5% of revenue exposure to 5G, while Skyworks SolutionsQorvo, Broadcom, Qualcomm and Xilinx are all relying on the growth from 5G infrastructure, Steves said. Advanced Micro Devices and Nvidia are the two companies responsible for high-end data center computing, the analyst said. "We view the Huawei and China/US relationship as a negative overhang on the semiconductor space and a lift of either would likely send the semiconductor industry materially higher (5-10% in our view)," Steves said in a note on Sunday. The administration's move to cut off Huawei's access to U.S. technology followed its tariff hike on $200 billion worth of Chinese goods earlier this month, which sent the semiconductor sector into a downward spiral. "This decision was likely a negotiation tactic by the Trump administration to bring China back to the table," Evercore's Muse said. "The clear risk here is that while President Trump believes he has achieved leverage in the negotiations, we may have pushed China past the precipice and that the current technology cold war gets engrained and accelerates." -- CNBC's Michael Bloom contributed to this report.

The VanEck Vectors Semiconductor ETF (SMH) was trading at $102.23 per share on Monday afternoon, down $3.20 (-3.04%). Year-to-date, SMH has gained 4.52%, versus a 7.08% rise in the benchmark S&P 500 index during the same period. SMH currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #16 of 81 ETFs in the Technology Equities ETFs category.
This article is brought to you courtesy of CNBC.
NYSE:SMH May 20, 2019 1:10pm

The Nasdaq slides on the US gov. crackdown on Huawei

nasdaq logo
From Fred Imbert: Stocks fell on Monday as the intensifying fallout from a U.S. crackdown on Huawei pressured the technology sector.
NASDAQ:QQQ

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