- Semiconductor and technology were among the few sector fund gainers in the stock market
- Facebook and Amazon got some face time as social media, coal and internet took over the top spots the past week among sector funds
Key market index funds closed mixed Tuesday as Intel and Nvidia led the upside, but Walmart tumbled on an earnings disappointment.
PowerShares QQQ Trust climbed 0.2 percent, while SPDR Dow Jones Industrial Average fell 1 percent and SPDR S&P 500 gave up 0.6 percent. Emerging markets took a harder hit: iShares MSCI Emerging Markets sank 1.4 percent.
Semiconductor and technology were among the few sector fund gainers in the stock market today. VanEck Vectors Semiconductor and iShares PHLX Semiconductor rose 2 percent and 1.8 percent, respectively. Both are in potential buy range after regaining their 50-day lines. Graphics chip designer Nvidia, up 2.2 percent, marked a new closing high.
Apple, one of the Dow’s biggest advancers early in the session, reversed to a 0.3 percent loss. Shares of the iPhone maker are holding just above their 50-day line and 4 percent below their January peak, but not in a buy area. Last week, the stock rallied more than 10 percent to retake both its 50-day and 200-day lines.
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Consumer staples, gold miners and retail lagged. SPDR S&P Retail shed 2 percent, sliding back below its 50-day moving average. Component Walmart gapped down and plunged 1o percent to a three-month low after an earnings miss and slowing online sales growth.
Gold ETFs fell as gold futures tumbled nearly 2 percent. But Bitcoin continued its recent recovery, rising 5 percent to $11,698.37, according to CoinDesk. Bitcoin Investment Trust vaulted 13 percent to closed 2 percent shy of its 50-day moving average. After cracking down on cryptocurrencies the past three weeks, South Korea said it will support “normal transactions” of digital currencies.
Social Media Shines
Facebook and Amazon got some face time as social media, coal and internet took over the top spots the past week among sector funds.
Global X Social Media led with a 9.3 percent year-to-date gain as of Feb. 13, far ahead of the S&P 500, which was down 0.2 percent at the time. The $192.6 million fund, which tracks the Solactive Social Media Total Return Index, offers exposure to social media companies around the world. SOCL is in extended after a rebound off its 50-day moving average.
Top five holdings as of Feb. 15 were Twitter, Tencent, Facebook, Snapchat parent Snap and Yandex. Together, they accounted for nearly 46 percent of total assets. The six-year-old fund has outperformed the broader market over the longer haul with three-year and five-year average annual returns of 25.4 percent and 21 percent, respectively.
Up next is VanEck Vectors Coal, with a 7.7 percent year to date gain, according to Morningstar Direct. The $119.3 million fund tracks the MVIS Global Coal Index, which invests in global companies that generate at least 50 percent of revenue from coal-related operations. It’s also extended from a bounce off the 50-day line.
First Trust Dow Jones Internet came in third with a 7.4 percent return this year. The $6.3 billion ETF, which owns Amazon, Facebook and Netflix among its top holdings, was featured in this ETF column on Dec. 7 as it found support at its 50-day moving average. Shares are extended from a more recent rebound off the line.
Most of the funds in the accompanying table are extended. ARK Genomic Revolution Multi-Sector is near the top of a potential buy range from a rebound off its 50-day line. The $86.6 million fund, which topped the sector funds list last week, was one of the funds featured in this ETF column on Feb. 12.
Consumer Discretionary Select SPDR, featured in Thursday’s ETF column, is also in a possible buy zone. The $13.4 billion fund’s top holdings include big household names such as Amazon, Walt Disney and McDonald’s.
Friday’s pick, SPDR Dow Jones Industrial Average, is testing support at its 50-day moving average. A solid rebound off the line could set up a new buy opportunity.
Date: Feb 17, 2018