iShares Core S&P 500
Latest iShares Core S&P 500 News and Updates
The Longevity Phenomenon: Impact on the World
The longevity phenomenon has given rise to a unique problem. The world’s population is aging rapidly, which could have a negative impact on productivity and growth rates.
The Importance of Rebalancing Your Portfolio
Rebalancing your portfolio means bringing the portfolio back to the asset allocation levels specified in the financial plan. Not rebalancing can expose you to higher risk.
Rate hike horizon: September’s jobs report was largely positive
After September’s strong jobs numbers, a Fed rate hike could be on the horizon early next year. Russ explains two equity market implications.
AXP’s Valuations Down in 4Q15, Targeted $1 Billion in Savings
American Express (AXP) expects its full-year 2016 EPS to be between $5.40–$5.70. It looks to return to positive EPS growth in 2016 and is targeting a minimum of $5.60 EPS for 2017.
What S&P 500 Index Moving Averages Could Indicate
The S&P 500 Index is trading 1.2% above its 20-day moving average and 6% above its 100-day moving average.
Why IBM’s Earnings Could Fall Going Forward
International Business Machines (IBM) reported its 2Q17 results on Tuesday, July 18. The company reported falling quarterly profits and sales yet again.
What key PMI indicators mean for stocks and investors
Last week, the Institute for Supply Management (or ISM) and Markit both released their reports on the Purchasing Managers Index (or PMI). The ISM’s report gave its strongest reading since February.
Could Yum! Brands’ Margins Increase in 1Q16?
With positive same-store sales growth expected in all three of YUM’s divisions, analysts are expecting the leverage to improve the company’s margins.
Inside the Market’s View of Corporate Tax Cuts
Are markets upbeat on potential tax reforms? The markets (SPY) (IVV) surged last week with the announcement of a phenomenal update on the corporate tax cut. The S&P and Nasdaq Comp gained ~2% in the week ended February 10, 2017. The Trump administration’s proposed tax cut is likely to boost the economy, though analysts have […]
Kocherlakota said the FOMC could have done more for labor markets
In evaluating the FOMC’s performance over the past three years, Kocherlakota mentioned that the unemployment rate fell to 5.6%.
You should pay particular attention to this valuation metric
I would pay particular attention to the Shiller P/E Ratio, which is a variation on the Cyclically Adjusted P/E or CAPE. This indicator is worth watching as it has historically correlated with long-term stock market returns.
Rising Stocks: Why It May Not Be Time for the Jitters
Rising stocks have been buoyed by various factors, including the accommodative monetary policy of the Federal Reserve and robust US corporate earnings.
Becton, Dickinson and Company’s 4Q16 Earnings Estimates
Wall Street projected a rise in Becton, Dickinson and Company’s (BDX) adjusted net profit margins. The margins are expected to come in at ~$453 million.
Will We See a Recession within the Next 2 Years?
In a recent interview, Jim Rogers said, “I’m on record as saying that we’re going to have a recession certainly within a year or two.”
Flat Consumer Spending May Cast a Shadow over Department Stores
According to the BEA, consumer spending remained essentially unchanged despite a 0.3% rise in real disposable income stemming from a higher savings rate.
Why Carlyle’s 4Q16 Performance Nosedived
Carlyle Group posted economic net income of $0.02 in 4Q16 on February 8, which was lower than the analyst estimate of $0.41.
What Stretched Utility Sector Valuation Means
Utility sector valuation appears stretched. 2014 was a great year for utilities, which gained 26.62% ex-dividends and were the best-performing sector.
How Will Carlyle Group Perform in 3Q16?
Carlyle expects EPS of $0.44 in 3Q16. For the full year, analysts have revised earnings expectations up to $1.44 with an implied price-to-earnings of 10.8x.
How Gilead Sciences’ Gross Margin Outshines Its Peers
Despite a year-over-year (or YoY) drop in revenues in 2Q16, Gilead Sciences (GILD) managed to earn gross margins of about 92%.
Baker Hughes’s Management on Its 3Q16 Outlook
Baker Hughes’s (BHI) management believes that international upstream operations will continue to stay pressured.
21st Century Fox’s STAR: A Star in India
Twenty-First Century Fox (FOXA) owns STAR India, India’s (EPI) largest media network. STAR India develops, broadcasts, and produces programming for 51 channels in seven languages in its portfolio.
Why the housing market impacts consumption and equity investors
This article considers the importance of investment, including residential investment, in the support of U.S. consumption data and the implications for investors.
US and China avoid contentious issues at the APEC meeting
Both China and the US decided to steer clear of more contentious issues at the meeting. Accordingly, the disputes over Hong Kong and cyber space were not even brought up.
How Did Pfizer Perform in 3Q17?
In 3Q17, Pfizer (PFE) generated revenues of $13.2 billion, an increase of ~1% on a year-over-year (or YoY) basis and a 1% increase on a quarter-over-quarter basis.
Economists Disagree with Trump’s Fiscal and Trade Deficit Views
Donald Trump has been vociferous about cutting taxes. He intends to reduce the current seven tax brackets to three.
Why wage growth could cause rates to rise
Wage growth could cause rates to rise. A hike in wage rates could boost consumption and encourage individuals outside the labor force to join. This will increase disposable income.
Developed Markets Offer Value after the Rout
Developed markets are offering value. The Eurozone has come out of the recession and is seeing some green shoots of growth.
Why investor sentiment can show overvaluation in US markets
While valuation is important, investors should also pay attention to sentiment. The goal is to gauge how – to steal a phrase – “irrationally exuberant” investors have become.
Why monetary policy’s still abnormal as the FOMC nears its target
While addressing the Tennessee Bankers Association’s annual meeting in Palm Beach, Florida, on June 9, 2014, James Bullard explained how the FOMC is moving closer to its target while monetary policy still maintains a distance from its objective.
The Federal Reserve’s patience: Is it here to stay?
The January 2015 meeting minutes showed that several policymakers weren’t in favor of dropping “patience.” Changing the language is a big deal.
Are Tougher Days ahead for Global Equities?
The IMF revealed that emerging Asia is expected to grow ~6.5% in 2018 and 2019.
Will consumer spending affect the yield curve and Fed funds rate?
The Bureau of Economic Analysis will release its personal income and outlays report for March on Thursday, May 1. The report measures individuals’ income and expenditure levels.
Minimum-Volatility Funds Provide Cushion During Downturns
Minimum-volatility funds provide cushion during high volatility. These funds invest in low beta stocks and sectors that weather periods of volatility.
Why Did Time Warner Stock Fall after Earnings Release?
On February 10, 2016, Time Warner (TWX) reported its 4Q15 and fiscal 2015 earnings. The company reported revenues of $7.1 billion in 4Q15, a decline of 6% year-over-year.
Why Energy Could Spell Worry for Wall Street Bulls
US crude oil (USO) (USL) April futures fell 6.3% between March 2, 2017, and March 9, 2017. The fall in XLE corresponded with weakness in crude oil prices.
Advance retail sales for December 2014 were disappointing
Markets were disappointed by the weak retail sales report. Estimates for advance retail sales were $442.9 billion in December 2014.
Why Amazon’s 2Q16 Top Line Remained Strong
Amazon’s top line increased by 31.1% YoY to $30.4 billion in 2Q16 on account of healthy e-commerce sales driven by Amazon Prime membership growth.
What Has Caused the Correction in Transportation Stocks?
DJTI’s price-to-earnings ratio climbed from 15.7x at the start of 2013 to 20.2x at the end of 2014. This year, transportation stocks (IYT) have taken a hit, leading to multiple contractions.
Why Is Sprint Cutting Jobs?
According to Sprint, it has planned to rationalize annual costs by at least $2 billion from fiscal 2016.
Must-know: Why volatility is likely to tick up in September 2014
While volatility fell over the course of August, the VIX’s daily average for last month was approximately 15% higher than its average over the previous three months.
Must-know: Market’s reception of the Fed’s July FOMC statement
Treasury yields on the long-end of the curve, were down since the conclusion of the Fed’s last FOMC meeting on June 18—30-year and ten-year Treasury yields had fallen by 12 bps and three basis points (or bps), respectively over the period June 18 to July 30.
Analysts Expect Medtronic’s Revenue to Rise 4% in Fiscal 4Q17
Wall Street analysts expect Medtronic’s (MDT) revenue to be ~$7.9 billion in fiscal 4Q17, a rise of ~4% compared to its fiscal 4Q16 revenue of $7.6 billion.
What Are the Rate Hike Implications for Emerging Markets?
An interest rate hike in the United States (IVV) is likely to pose a huge challenge to emerging markets.
Part 6: Mid Cap Growth MLP, Mark West Energy Partners—overbought?
MLP’s—have retail investors gone too far? The below graph of Mark West Energy Partners, MWE, reflects exceptional growth against the S&P 400 mid cap index as well as the Morningstar mid cap growth index. This mid cap Master limited Partnership, MLP, has certainly ridden the MLP bull market. Despite the challenges faced by Chesapeake Energy, […]
What Could Expand Keytruda’s Revenues?
In addition to the US market, Merck’s (MRK) Keytruda has been approved in more than 50 international markets for metastatic melanoma.
Why a Chinese Market Slump Won’t Affect the Economy
The Chinese market slump is not likely to dampen consumer spending or affect the economy. Stocks make up a mere 15% of Chinese household financial assets.
Why An Improving Economy Is Good For The Dollar
This article discusses the ways in which an improving economy is good for the dollar.
MasterCard’s Leverage Is Comfortable for Expansion, Acquisitions
MasterCard (MA) has debt of $3.3 billion with a total balance sheet of $15.9 billion as of March 31, 2016. This compares to $16.2 billion in 4Q15.
Market Rebound Causes Stretched Valuations
A market rebound of more than 12% from the depths seen in October has left investor sentiment buoyant.
Analysts Expect Biogen’s Net Profit Margins to Rise in 3Q15
Biogen’s (BIIB) 3Q15 earnings results will be announced on October 21, 2015. Analysts expect that the company will report lower net profit margins as compared to 2Q15.