Asset managers and hedge funds switch to net selling: Citi By Investing.com
Investment Trends: Long-only managers decreased their investments in Real Estate and Energy while increasing positions in Financials and Consumer Discretionary; hedge funds also sold off Industrials, Tech, and Energy but added to Health Care and Consumer Discretionary.
Market Regimes: The current market indicators suggest a strong correlation with the "Growth Shock" regime, while the "Goldilocks" correlation has also strengthened, particularly benefiting the Tech sector amidst underperformance in Energy.
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Friday's Top Sectors: Services and Consumer Goods
Services Sector Performance: The Services sector is the best performing sector, up 0.3%, with lululemon athletica inc (LULU) gaining 10.2% and Chipotle Mexican Grill Inc (CMG) up 4.0%. However, both stocks are down significantly year-to-date, with LULU down 46.10% and CMG down 39.88%.
Consumer Products Sector Performance: The Consumer Products sector follows closely, up 0.2%, led by Hormel Foods Corp. (HRL) and Tesla Inc (TSLA), which gained 1.9% and 1.4%, respectively. HRL is down 19.25% year-to-date, while TSLA is up 12.22%.
ETF Performance: The iShares U.S. Consumer Services ETF (IYC) is up 0.2% on the day and 9.09% year-to-date, while the iShares U.S. Consumer Goods ETF (IYK) is up 0.5% and 4.99% year-to-date.
Overall Market Snapshot: In afternoon trading, three sectors are up while six sectors are down, indicating mixed performance across the S&P 500 components.
How America's Wealthy Spending is Steadily Supporting Service-Sector ETFs
K-shaped Economy Impact: The K-shaped economy in the U.S. is evident in ETF performance, with affluent consumers driving growth in service spending, travel, and digital consumption, while lower-income households are pulling back.
Strong Performance of Service ETFs: Funds like the Invesco Dynamic Leisure & Entertainment ETF and iShares U.S. Consumer Services ETF have shown resilience, with gains of 14% and 8% YTD, respectively, due to sustained demand from higher-income households.
Online Retail Surge: The Amplify Online Retail ETF is experiencing record growth, fueled by high-income consumers leading online shopping during major sales events like Black Friday and Cyber Monday.
Concerns for Lower-Income ETFs: ETFs focused on lower-income consumers, such as the SPDR S&P Retail ETF, are struggling due to weak small-business hiring and affordability issues, highlighting the disparity in consumer spending trends.
Analysts Predict IYC Will Reach $118
ETF Analysis: The iShares U.S. Consumer Discretionary ETF (IYC) has an implied analyst target price of $118.09, indicating a potential upside of 13.98% from its current trading price of $103.60.
Notable Holdings: Key underlying holdings with significant upside potential include Newell Brands Inc (66.92% upside), e.l.f. Beauty Inc (61.51% upside), and RH (57.97% upside) based on their respective analyst target prices.
Analyst Target Justification: The article raises questions about whether analysts' target prices are justified or overly optimistic, suggesting that high targets may lead to downgrades if they do not align with current market conditions.
Investor Research: Investors are encouraged to conduct further research to assess the validity of analyst targets in light of recent developments in the companies and the industry.
Friday's Top Sectors: Services and Energy
Services Sector Performance: Shares of Services companies are leading the market with a 0.9% increase, driven by significant gains from Expedia Group Inc (up 17.3%) and News Corp (up 5.9%).
ETF Tracking Services: The iShares U.S. Consumer Services ETF (IYC) is slightly down by 0.1% today but has risen 5.89% year-to-date, with Expedia and News Corp making up about 0.5% of its holdings.
Energy Sector Performance: The Energy sector is also performing well, up 0.8%, with Exxon Mobil Corp and Devon Energy Corp showing gains of 2.4% and 2.3%, respectively.
ETF Tracking Energy Stocks: The Energy Select Sector SPDR ETF (XLE) is up 1.0% today and 6.66% year-to-date, with Exxon and Devon comprising approximately 24.8% of its holdings.
Dell, Microsoft, Welltower, and Others Featured in CNBC's 'Final Trades'
Dell Technologies Earnings Forecast: Bryn Talkington highlighted Dell Technologies ahead of its earnings report on Nov. 25, with expectations of earnings per share rising to $2.47 and revenue increasing to $27.26 billion.
Microsoft Buying Opportunity: Malcolm Ethridge identified Microsoft as a buying opportunity following a recent sell-off, noting its first-quarter revenue of $77.7 billion exceeded expectations.
Welltower's Strong Performance: Joseph M. Terranova reported positive earnings for Welltower, with quarterly earnings of $1.34 per share and sales of $2.686 billion, both surpassing analyst estimates.
Market Reactions: Dell and Microsoft shares fell by 1.4%, while Welltower shares rose by 1.1%, and the iShares US Consumer Discretionary ETF increased by 0.6% during the session.
Trump warns stock market could decline if Supreme Court overturns his tariffs
Trump's Implication on Stock Market: Donald Trump suggested that the stock market might face a downturn if the Supreme Court decides to eliminate his tariffs.
Uncertainty Around Tariffs: While he didn't explicitly state a prediction of a market crash, his comments indicate concern over the potential economic impact of losing the tariffs.
Friday's Top Sectors: Services and Consumer Goods
Services Sector Performance: The Services sector is the best performing sector, up 0.3%, with lululemon athletica inc (LULU) gaining 10.2% and Chipotle Mexican Grill Inc (CMG) up 4.0%. However, both stocks are down significantly year-to-date, with LULU down 46.10% and CMG down 39.88%.
Consumer Products Sector Performance: The Consumer Products sector follows closely, up 0.2%, led by Hormel Foods Corp. (HRL) and Tesla Inc (TSLA), which gained 1.9% and 1.4%, respectively. HRL is down 19.25% year-to-date, while TSLA is up 12.22%.
ETF Performance: The iShares U.S. Consumer Services ETF (IYC) is up 0.2% on the day and 9.09% year-to-date, while the iShares U.S. Consumer Goods ETF (IYK) is up 0.5% and 4.99% year-to-date.
Overall Market Snapshot: In afternoon trading, three sectors are up while six sectors are down, indicating mixed performance across the S&P 500 components.
How America's Wealthy Spending is Steadily Supporting Service-Sector ETFs
K-shaped Economy Impact: The K-shaped economy in the U.S. is evident in ETF performance, with affluent consumers driving growth in service spending, travel, and digital consumption, while lower-income households are pulling back.
Strong Performance of Service ETFs: Funds like the Invesco Dynamic Leisure & Entertainment ETF and iShares U.S. Consumer Services ETF have shown resilience, with gains of 14% and 8% YTD, respectively, due to sustained demand from higher-income households.
Online Retail Surge: The Amplify Online Retail ETF is experiencing record growth, fueled by high-income consumers leading online shopping during major sales events like Black Friday and Cyber Monday.
Concerns for Lower-Income ETFs: ETFs focused on lower-income consumers, such as the SPDR S&P Retail ETF, are struggling due to weak small-business hiring and affordability issues, highlighting the disparity in consumer spending trends.
Analysts Predict IYC Will Reach $118
ETF Analysis: The iShares U.S. Consumer Discretionary ETF (IYC) has an implied analyst target price of $118.09, indicating a potential upside of 13.98% from its current trading price of $103.60.
Notable Holdings: Key underlying holdings with significant upside potential include Newell Brands Inc (66.92% upside), e.l.f. Beauty Inc (61.51% upside), and RH (57.97% upside) based on their respective analyst target prices.
Analyst Target Justification: The article raises questions about whether analysts' target prices are justified or overly optimistic, suggesting that high targets may lead to downgrades if they do not align with current market conditions.
Investor Research: Investors are encouraged to conduct further research to assess the validity of analyst targets in light of recent developments in the companies and the industry.
Friday's Top Sectors: Services and Energy
Services Sector Performance: Shares of Services companies are leading the market with a 0.9% increase, driven by significant gains from Expedia Group Inc (up 17.3%) and News Corp (up 5.9%).
ETF Tracking Services: The iShares U.S. Consumer Services ETF (IYC) is slightly down by 0.1% today but has risen 5.89% year-to-date, with Expedia and News Corp making up about 0.5% of its holdings.
Energy Sector Performance: The Energy sector is also performing well, up 0.8%, with Exxon Mobil Corp and Devon Energy Corp showing gains of 2.4% and 2.3%, respectively.
ETF Tracking Energy Stocks: The Energy Select Sector SPDR ETF (XLE) is up 1.0% today and 6.66% year-to-date, with Exxon and Devon comprising approximately 24.8% of its holdings.
Dell, Microsoft, Welltower, and Others Featured in CNBC's 'Final Trades'
Dell Technologies Earnings Forecast: Bryn Talkington highlighted Dell Technologies ahead of its earnings report on Nov. 25, with expectations of earnings per share rising to $2.47 and revenue increasing to $27.26 billion.
Microsoft Buying Opportunity: Malcolm Ethridge identified Microsoft as a buying opportunity following a recent sell-off, noting its first-quarter revenue of $77.7 billion exceeded expectations.
Welltower's Strong Performance: Joseph M. Terranova reported positive earnings for Welltower, with quarterly earnings of $1.34 per share and sales of $2.686 billion, both surpassing analyst estimates.
Market Reactions: Dell and Microsoft shares fell by 1.4%, while Welltower shares rose by 1.1%, and the iShares US Consumer Discretionary ETF increased by 0.6% during the session.
Trump warns stock market could decline if Supreme Court overturns his tariffs
Trump's Implication on Stock Market: Donald Trump suggested that the stock market might face a downturn if the Supreme Court decides to eliminate his tariffs.
Uncertainty Around Tariffs: While he didn't explicitly state a prediction of a market crash, his comments indicate concern over the potential economic impact of losing the tariffs.
