All Research Archives
Daily Note
1.30.2023
Equities: On Friday, U.S. markets posted gains as investors weighed the core personal consumption expenditures (PCE) results which showed that the price index increased 4.4% from a year ago, the slowest annual rate of incease since October 2021. The Core PCE excludes food and energy prices and is one one of the preferred inflation gauges for the Federal Reserve. The NASDAQ 100 (QQQ) climbed 1.00%, the S&P 500 (SPY) added 23 bps, and the Dow Jones Industrial Average (DIA) rose 7 bps. All three major averages were higher last week with QQQ jumping 4.80%, SPY increasing 2.48%, and DIA up 1.78%. This was the 4th consecutive week in positive territory for QQQ. This week, investors will be monitoring earnings results from UPS, Meta, Apple, Alphabet, Amazon, and Ford, amongst other companies as well as the Federal Open Market Committee (FOMC) meeting and rate decision this week. Mixed day for U.S. factor strategies on Friday with S&P 500 High Beta (SPHB, +56 bps) and S&P 500 Pure Value (RPV, +44 bps) outperforming. S&P 500 Momentum (SPMO) sunk 1.09% on the day. All factors were in the green last week with SPHB climbing 4.77% and RPV rising 3.26%. Developed ex-U.S. Markets (EFA) fell 20 bps on Friday as the Nethlands (EWN) dropped 61 bps and Hong Kong (EWH) declined 58 bps. Emerging Markets (EEM, -47 bps) were pulled lower by India (INDA, -2.55%) and Brazil (EWZ, -2.52%). EEM added 1.37% last week while EFA rose 83 bps.
Sectors: Consumer Discretionary (XLY) surged 2.27% on Friday lifted by Tesla (12.26% weight), which rocketed another 11% following its better-than-expected quarterly results. Tesla gained 33% last week, its best weekly performance since May 2013. Real Estate (XLRE) and Communication Services (XLC) gained 90 bps and 69 bps, respectively, while Technology (XLK) and Industrials (XLI) both added 42 bps on Friday. XLC and XLY both sit in overbought territory. Energy (XLE) underperformed, falling 2.02%. Last week, Health Care (XLV) dropped 78 bps and Utilities (XLU) dipped 49 bps. All other sectors finished higher on the week led by XLY, which jumped 6.41%. XLC and XLK both gained more than 4% on the week.
Themes: Just 3 global thematic segments saw losses on Friday: Wind (FAN,-82 bps), Advanced Materials (REMX, -45 bps), and Connectivity (FIVG, -24 bps). Multi-Theme (ARKK) and Disruptive Tech(ARKW) were teh top performing segments on the day, both climbing over 5.20%. Clean Energy (PBW) was also strong, advancing 3.67%. Industrial Revolution (ARKQ), Genomics (ARKG), Online Retail (IBUY), and FinTech (FINX) all rose more than 2%. Last week, Wind (FAN) was the only segment in the red, dipping 55 bps. Disruptive Tech (ARKW) jumped 11.30% and Multi-Theme (ARKK) climbed 10.66% on the week. ARKW and ARKK are both trading above realtive 50-day and 200-day moving averages and sit in overbought territory.
Commodities & Yields: The U.S. Dollar (UUP) increased 15 bps, U.S. Aggregate Bonds (AGG) fell 15 bps, and 20+ Year Treasury Bonds (TLT) declined 25 bps on Friday. At the closing bell, the U.S. 2-Year Treasury Yield stood at 4.207% and the U.S. 10-Year Treasury Yield stood at 3.516%. Broad Commodities (DJP) sunk 71 bps as WTI Crude Oil (USO) fell 2.02%, Gasoline (UGA) dropped 1.33%, and Tin (JJT) dipped 5.46%.
U.S. Size & Style Playbook
1.30.2023
An overview of the broad U.S. Size & Style ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
Daily Note
1.27.2023
Equities: U.S. markets were higher and treasury yields increased on a busy macroeconomic day on Thursday. The NASDAQ 100 (QQQ) surged 1.95%, the S&P 500 (SPY) rose 1.10%, and the Dow Jones Industrial Average (DIA) advanced 60 bps while the U.S. 2-Year neared 4.20% and the U.S. 10-Year jumped above 3.50% intraday. QQQ, SPY, and DIA are all trading above relative 50-day and 200-day moving averages. Q4 2022 U.S. gross domestic product (GDP) rose at a 2.9% annualized pace, slightly better than analyst expectations as consumer spending remained relatively strong despite looming recession fears. Jobless claims declined last week to the lowest levels since April 2022 and durable goods orders jumped 5.6% for December, well above expectations. On the earnings front, Tesla shot up nearly 11% after better-than-expected earnings results and Southwest and American Airlines both saw losses amid disappointing quarterly results. After the close, Intel reported weak earnings results and issued soft guidance as revenue declined for the 4th consecutive period. Chevron also climbed more than 4.75% yesterday after announcing its $75 billion share buyback program. All U.S. factor strategies were in the green yesterday led by growth-oriented pockets of the markets. S&P 500 Pure Growth (RPG) was up 1.62% and S&P 500 High Beta (SPHB) gained 1.60%. Developed ex-U.S. Markets (EFA, +8 bps) were lifted by South Korea (EWY, +1.93%). Emerging Markets (EEM) added another 95 bps as China (MCHI) climbed 1.44% and Taiwan (EWT) rose 1.18%.
Sectors: Consumer Staples (XLP) dipped 36 bps on Thursday and was the lone U.S. sector to see negative returns. Energy (XLE) jumped 3.16% and Consumer Discretionary (XLY) gained 2.05%, outpacing other sectors. XLE received a boost from Oil & Gas Exploration & Production (XOP, +2.40%). XLY is approaching overbought territory. Technology (XLK), Communication Services (XLC), and Real Estate (XLRE) all rose more than 1% followed by Industrials (XLI, +55 bps) and Financials (XLF, +53 bps). XLK was lifted by Internet (XWEB, +2.49%) and Software & Services (XSW, +1.79%). Only two industries were in the red: Transportation (XTN, -56 bps) and Biotech (XBI, -35 bps).
Themes: Mixed day for global themes yesterday as Cannabis (MJ) tumbled 1.79% and Evolving Consumer (SOCL) increased 2.79%. Disruptive Tech (ARKW, +2.34%), Industrial Revolution (ARKQ, +2.17%), Cloud Computing (SKYY, +2.09%), Multi-Theme (ARKK, +2.03%), and Cybersecurity (HACK, +2.03%) all posted strong returns. Clean Energy (PBW) and Space (UFO) declined 71 bps and 38 bps, respectively. Digital Infrastructure (SRVR) rose 73 bps and now sits just 1.24% below 52-week highs. The KraneShares CSI China Internet ETF (KWEB) surged 2.84% on the day and has climbed nearly 20% thus far in 2022.
Commodities & Yields: U.S. Aggregate Bonds (AGG) declined 17 bps, 20+ Year Treasury Bonds (TLT) fell 47 bps, and the U.S. Dollar (UUP) increased 26 bps. At Thursday’s close, the U.S. 2-Year Treasury Yield stood at 4.189% and the U.S. 10-Year Treasury Yield stood at 3.497%. Broad Commodities (DJP) finished higher by 63 bps as Agriculture (DBA) climbed 1.38% and Energy (DBE) declined 54 bps. Wheat (WEAT) was up 2.01%, Natural Gas (UNG) stumbled 1.94%, and Tin (JJT) jumped 4.94%.
Daily Note
1.26.2023
Equities: Ahead of Thursday’s U.S. Gross Domestic Product (GDP) report, major averages were mixed once again as investors considered mixed earnings results and lingering recession fears. The Dow Jones Industrial Average (DIA) and the S&P 500 (SPY) added 7 bps and 4 bps, respectively, while the NASDAQ 100 (QQQ) declined 22 bps. Microsoft dipped slightly yesterday after issuing disappointing guidance following its earnings beat on Tuesday. Boeing reported a top-line and bottom-line miss on Wednesday, IBM reported better-than-expected revenue results despite after the close, and Tesla beat on earnings and recorded record high revenues after the bell. Tesla reported automotive revenue of $21.3 billion in the fourth quarter (+33% growth year-over-year) and reported 405,278 vehicle deliveries and production of 439,701 vehicles in the period ending December 31, 2022. Also after the close, Chevron announced a $75 billion stock buyback program in addition to a dividend hike. The dividend increase will raise Chevron’s per share payout from $1.42 per share to $1.51. S&P 500 Pure Value (RPV) jumped 1.18% on Wednesday, handily outpacing other U.S. factor strategies, most of which finished higher. Developed ex-U.S. Markets (EFA) climbed 66 bps on strength from Japan (EWJ, +1.21%) and Australia (EWA, +97 bps). Emerging Markets (EEM) were up 10 bps as Brazil (EWZ) increased 2.56% and Vietnam (VNM) fell 1.39%. EFA and EEM remain in overbought territory.
Sectors: Utilities (XLU, -1.35%), Industrials (XLI, -56 bps), and Technology (XLK, -21 bps) were the only U.S. sectors to post losses yesterday. Financials (XLF) outperformed, rising 78 bps, followed by Consumer Discretionary (XLY, +51 bps) and Communication Services (XLC, +35 bps). All other sectors were up less than 30 bps on the day. Health Care (XLV), Consumer Staples (XLP), and XLU are the only sectors currently trading below relative 50-day moving averages. Oil & Gas Equipment & Services (XES) gained 2.91%, Metals & Mining (XME) added 1.25%, and Insurance (KIE) increased 90 bps. Biotech (XBI) inched higher by 9 bps yesterday but has seen over $1.5 billion in net outflows over the past week.
Themes: Advanced Materials (REMX) climbed 1.39% on Wednesday and was the only global thematic segment to gain more than 1%. Online Retail (IBUY) added 90 bps and Digital Infrastructure (SRVR) rose 77 bps while Connectivity (FIVG), Space (UFO), eSports & Video Games (ESPO), NextGen Transportation (DRIV), Big Data (AIQ), Genomics (ARKG), and Digital Payments (IPAY) all climbed more than 50 bps. Solar (TAN) and 3D Printing (PRNT) underperformed, dropping 1.83% and 75 bps, respectively. Evolving Consumer (SOCL) sunk 22 bps and remains in overbought territory. Year-to-date, Advanced Materials (REMX) and Blockchain (BLOK) have both risen more than 24%. Over the past year, Solar (TAN) has jumped nearly 27%.
Commodities & Yields: At Wednesday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.131% and the U.S. 10-Year Treasury Yield stood at 3.449%. The U.S. Dollar (UUP) sunk 33 bps, U.S. Aggregate Bonds (AGG) added 12 bps, and 20+ Year Treasury Bonds (TLT) gained 24 bps. Broad Commodities (DJP) dipped 9 bps as Energy (DBE) declined 1.06% and Precious Metals (DBP) rose 56 bps. Natural Gas (UNG) decreased 6.48%, Silver (SLV) advanced 97 bps, and Gold (GLD) increased 46 bps.
Daily Note
1.25.2023
Equities: Mixed session for U.S. markets on Tuesday as the NASDAQ 100 (QQQ) sunk 20 bps and the S&P 500 (SPY) dipped 11 bps while the Dow Jones Industrial Average (DIA) added 28 bps. The S&P Global Flash US Composite Price Manufacturing Index (PMI) results released yesterday showed that manufacturing and services activity slowed again in January as investors remain wary of a potential recession on the horizon. The Department of Justice filed its second antitrust lawsuit against Google in just over two years on Tuesday which calls for a breakup within the company’s advertising business. Google’s advertising business generated $54.5 billion in the quarter ended September 30 from Search, YouTube, Google Network ads and other advertising. After the close, Microsoft reported earnings results that topped analyst expectations amid strong growth from its cloud unit. Revenue missed slightly as the tech giant’s total revenue increased by just 2% year-over-year, the slowest rate since 2016. Most U.S. factor strategies were lower on Tuesday with S&P 500 High Beta (SPHB, -55 bps) and S&P 500 Pure Growth (RPG, -41 bps) underperforming. S&P 500 Low Volatility (SPLV) increased 35 bps, outgaining other factors. Emerging Markets (EEM) gained 7 bps as Brazil (EWZ) rose 1.85%. Developed ex-U.S. Markets (EFA) dropped 13 bps on weakness from European markets.
Sectors: 6 of the 11 U.S. sectors saw gains on Tuesday led by Industrials (XLI, +66 bps), Utilities (XLU, +51 bps), and Real Estate (XLRE, +43 bps). XLI is now trading just 3.80% from 52-week highs. Consumer Staples (XLP) was up 41 bps while Materials (XLB) and Financials (XLF) both added 6 bps. Health Care (XLV) lagged, falling 66 bps as Health Care Services (XHS) sunk 2.00% and Health Care Equipment (XHE) dropped 1.36%. Energy (XLE) and Communication Services (XLC) declined 39 bps and 28 bps, respectively. XLC is the only sector in overbought territory. On the industry level, Biotech (XBI) climbed 1.90%, Aerospace & Defense (XAR) rose 98 bps, and Internet (XWEB) decreased 1.67%.
Themes: Most global thematic segments closed lower yesterday with Blockchain (BLOK, -1.63%), Multi Theme (ARKK, -1.58%), and Disruptive Tech (ARKW, -1.57%) hit the hardest. Online Retail (IBUY), Genomics (ARKG), Clean Energy (PBW), FinTech (FINX), Solar (TAN), and Big Data (AIQ) all declined more than 1%. Just two segments gained more than 1% on the day: Biotech (SBIO, +1.86%) and Casinos & Gaming (BETZ, +1.31%). Advanced Materials (REMX) also added 92 bps and entered overbought territory.
Commodities & Yields: Broad Commodities (DJP) finished down 53 bps as Energy (DBE) declined 1.82%. Natural Gas (UNG) sunk 4.72%, WTI Crude Oil (USO) tumbled 1.79%, and Lead (LD) climbed 5.29%. U.S. Aggregate Bonds (AGG) rose 44 bps, 20+ Year Treasury Bonds (TLT) jumped 1.44%, and the U.S. Dollar (UUP) dropped 11 bps. At Tuesday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.212% and the U.S. 10-Year Treasury Yield stood at 3.460%.
Global Thematic Playbook
1.25.2023
An overview of the Global Thematic ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
Daily Note
1.24.2023
Equities: Major averages posted gains for the second consecutive session on Monday after a mixed week last week. The NASDAQ 100 (QQQ) jumped 2.22%, the S&P 500 (SPY) rose 1.20%, and the Dow Jones Industrial Average (DIA) increased 75 bps. Small-Caps (IJR, +1.10%) and Mid-Caps (IJH, +1.25%) were also strong while U.S. treasury yields were higher. Investors remain focused on the Fed rate decision on February 1 as well as more earnings results, gross domestic product (GDP) results, and additional housing data to be released this week. Spotify announced on Monday that it plans to cut 6% of its 9,800 employees. Google, Microsoft, Amazon, and several other large-cap tech companies have also recently announced employee reduction plans. All U.S. factor strategies saw positive returns on the day while S&P 500 High Beta (SPHB, +2.94%) and S&P 500 Pure Value (RPV, +1.51%) outperformed. S&P 500 Low Volatility (SPLV, +14 bps) and S&P 500 Momentum (SPMO, +2 bps) were the worst performing factors. Emerging Markets (EEM) climbed 72 bps as Taiwan (EWT) added 1.47% and China (MCHI) gained 1.17%. Developed ex-U.S. Markets (EFA, +41 bps) were lifted by the Netherlands (EWN, +1.44%) and Hong Kong (EWH, +1.35%). Over the past 3 months, EWN has surged more than 35%. EEM and EFA are both trading well above relative 50-day and 200-day moving averages and sit in overbought territory.
Sectors: Technology (XLK) advanced 2.28% yesterday and outpaced other U.S. sectors, all of which finished up on the day. XLK was lifted higher by Semiconductors (XSD, +5.08%), Internet (XWEB, +4.21%), and Software & Services (XSW, +2.75%). Communication Services (XLC), Consumer Discretionary (XLY), Financials (XLF), and Industrials (XLI) all climbed more than 1%. XLC is trading 8.40% above its 50-day moving average and sits in overbought territory. Utilities (XLU) lagged, inching higher by just 3 bps. Oil & Gas Equipment & Services (XES) dipped 1 bps and was the only industry to finish lower on Monday.
Themes: Digital Infrastructure (SRVR) and Biotech (SBIO) were the only global thematic segments in the red on Monday, falling 64 bps and 1 bps, respectively. Most segments were up more than 2.50% led by Clean Energy (PBW, +4.77%), Disruptive Tech (ARKW, +4.65%), and Multi-Theme (ARKK, +4.33%). Advanced Materials (REMX), Online Retail (IBUY), eSports & Video Games (ESPO), Blockchain (BLOK), NextGen Transportation (DRIV), and Cloud Computing (SKYY) all jumped more than 3% on the day. 5 segments currently sit in overboguht territory: Evolving Consumer (SOCL), Robotics & AI (ROBO), Online Retail (IBUY), Blockchain (BLOK), and Big Data (AIQ).
Commodities & Yields: U.S. Aggregate Bonds (AGG) fell 25 bps, 20+ Year Treasury Bonds (TLT) sunk 47 bps, and the U.S. Dollar (UUP) added 15 bps. At Monday’s closing bell the U.S. 2-Year Treasury Yield stood at 4.234% and the U.S. 10-Year Treasury Yield stood at 3.525%. Broad Commodities (DJP) rose 45 bps as Natural Gas (UNG) shot up 7.31%, Gasoline (UGA) increased 1.62%, and Wheat (WEAT) declined 3.05%.
U.S. Factor Playbook
1.24.2023
An overview of the U.S. Factor ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
U.S. Size & Style Playbook
1.23.2023
An overview of the broad U.S. Size & Style ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
Daily Note
1.23.2023
Equities: On Friday, U.S. markets rallied with the NASDAQ 100 (QQQ) surging 2.74%, the S&P 500 (SPY) climbing 1.86%, and the Dow Jones Industrial Average (DIA) adding 1.00%. QQQ benefitted from strong returns from Netflix (1.32% weight in QQQ), which jumped nearly 9% after surprising subscriber growth in Q4, and Alphabet (7.99% weight in QQQ), which increased 5.72% after announcing it would layoff 12,000 employees. QQQ finished higher for the 3rd consecutive week last week, gaining 61 bps, while SPY dipped and DIA fell 66 bps and 2.65%, respectively. Existing home sales data released Friday showed that sales declined for the 11th straight month in December, hitting the slowest pace since November 2010. Federal Reserve Governor Christopher Waller said Friday he favors a quarter percentage point interest rate increase at the next Fed meeting, confirming market expectations. He elaborated saying, “Beyond that, we still have a considerable way to go toward our 2 percent inflation goal, and I expect to support continued tightening of monetary policy.” According to the CME FedWatch Tool, there is a 99.2% chance of a 25 bps interest rate increase and a 0.8% chance of a 50 bps rate hike at the February 1 Fed meeting. S&P 500 High Beta (SPHB, +3.26%) and S&P 500 Pure Value (RPV, +2.25%) led other U.S. factor strategies on Friday, all of which returned more than +1%. Most factors posted losses last week with S&P 500 Low Volatility (SPLV) falling 2.44%. Emerging Markets (EEM, +1.53%) were lifted once again by China (MCHI, +2.15%) on Friday while Developed ex-U.S. Markets (EFA) rose 88 bps on strength from the Netherlands (EWN, +1.90%).
Sectors: All U.S. sectors finished higher on Friday with Communication Services (XLC, +3.13%) leading the charge. Technology (XLK), Consumer Discretionary (XLY), and Materials (XLB) all climbed moire than 2% while Financials (XLF), Industrials (XLI), and Real Estate (XLRE) were all up more than 1%. Health Care (XLV) lagged other sectors, adding just 50 bps. Internet (XWEB, +3.96%) and Semiconductors (XSD, +2.83%) provided a boost for XLK on the day. Last week, all sectors saw negative returns except for XLC, which added 1.43%, XLK, which climbed 65 bps, and Energy (XLE), which increased 59 bps. Utilities (XLU) sunk nearly 3% on the week and underperformed other sectors.
Themes: All global thematic segments finished in the green on Friday and most segments climbed more than 2%. Disruptive Tech (ARKW) surged 5.37% followed by Multi-Theme (ARKK, +4.92%). Online Retail (IBUY), Blockchain (BLOK), FinTech (FINX), Advanced Materials (REMX), and Cloud Computing (SKYY) all gained more than 3%. Evolving Consumer (SOCL) rose 2.42% and now sits in overbought territory. The Global X Blockchain ETF (BKCH) jumped 7.66% on Friday and handily outpaced other thematic ETFs. Last week, segments posted mixed results. Blockchain (BLOK) outperformed on the week advancing 3.65% while Cannabis (MJ) declined 3.48%.
Commodities & Yields: At Friday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.174% and the U.S. 10-Year Treasury Yield stood at 3.482%. U.S. Aggregate Bonds (AGG) sunk 41 bps, 20+ Year Treasury Bonds (TLT) fell 1.62%, and the U.S. Dollar (UUP) dipped 15 bps. Broad Commodities (DJP) closed up 18 bps. WTI Crude Oil (USO) increased 1.36%, Natural Gas (UNG) fell 238%, and Tin (JJT) rose 3.22%.
U.S. Sector & Industry Playbook
1.23.2023
An overview of the U.S. Sector ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
Daily Note
1.20.2023
Equities: The S&P 500 (SPY) and the Dow Jones Industrial Average (DIA) notched their 3rd straight day of losses on Thursday, declining 73 bps and 70 bps, respectively. The NASDAQ 100 (QQQ) was also weak, falling 98 bps. Jobless claims data released yesterday showed that initial filings for unemployment insurance dropped to their lowest level since late September 2022. The labor market remains strong but the results also prompted concerns from investors that the Federal Reserve would continue to keep interest rates elevated. Fed Governor Lael Brainard added fuel to those concerns by insisting that the central bank will maintain high rates despite data that could indicate slowing inflation. At a speech in Chicago she remarked, “Even with the recent moderation, inflation remains high, and policy will need to be sufficiently restrictive for some time to make sure inflation returns to 2% on a sustained basis.” The U.S. hit its debt limit on Thursday and Treasury Secreatary Janet Yellen has assured Congress that the Treasury Department started taking extraordinary measures to pay federal government bills. After market close, Netflix reported that it added 7.66 million paid subscribers in Q4, far exceeding 4.57 million expectations. S&P 500 Momentum (SPMO) added 32 bps and was the only U.S. factor strategy to post gains on the day. S&P 500 High Beta (SPHB, -1.95%) and S&P 500 Pure Value (RPV, -1.11%) were the laggards. Emerging Markets (EEM) climbed 76 bps on strength from China (MCHI, +1.85%). Developed ex-U.S. Markets (EFA) dipped 16 bps as the Netherlands (EWN) declined 1.39%.
Sectors: Energy (XLE) rose 1.24% yesterday and outpaced other U.S. sectors. XLE was lifted by Oil & Gas Exploration & Production (XOP, +1.95%). XLE is the only sector trading within 5% of 52-week highs. Communication Services (XLC) and Health Care (XLV) were the only other sectors to finish higher on Thursday, increasing 51 bps and 24 bps, respectively. Industrials (XLI) underperformed, falling 2.06%. Consumer Discretionary (XLY), Technology (XLK), Financials (XLF), and Utilities (XLU) all declined more than 1%. Consumer Staples (XLP) also sunk 95 bps and is approaching oversold territory. Semiconductors (XSD) and Homebuilders (XHB) trailed other industries on Thursday, both sinking more than 3%.
Themes: Most global thematic segments saw losses on Thursday with Solar (TAN) and Clean Energy (PBW) both decreasing more than 4.30%. Genomics (ARKG), Multi-Theme (ARKK), and Cannabis (MJ) were all down more than 3%. Evolving Consumer (SOCL, +93 bps), Blockchain (BLOK, +91 bps), and Advanced Materials (REMX, +51 bps) were the only segments to post gains. Cybersecurity (HACK) declined 96 bps and is now trading just 4.14% above 52-week lows. The ETFMG Travel Tech ETF (AWAY) added another 98 bps yesterday and is the only thematic ETF in overbought territory. AWAY is up 12.24% year-to-date. The KraneShares CSI China Internet ETF (KWEB, +1.86%) was the best performing thematic ETF on the day.
Commodities & Yields: The U.S. Dollar (UUP) dipped 25 bps, U.S. Aggregate Bonds (AGG) dropped 23 bps, and TIPS Bonds (TIP) added 62 bps. At Thursday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.114% and the U.S. 10-Year Treasury Yield stood at 3.395%. Broad Commodities (DJP) increased 57 bps as Energy (DBE) jumped 1.80% and Precious Metals (DBP) rose 1.50%. Gold (GLD) gained 1.59%, Gasoline (UGA) was up 3.51%, and WTI Crude Oil (USO) climbed 1.55%.
Global Thematic Playbook
1.19.2023
An overview of the Global Thematic ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
Daily Note
1.19.2023
Equities: U.S. markets retreated yesterday despite December’s Producer Price Index (PPI) results, which showed that prices had declined 0.5% month-over-month, indicating that inflation could be slowing. The index for energy plummeted 7.9% on the month as wholesale gasoline prices tumbled 13.4%. Year-over-year, headline PPI was still up 6.2%. Treasury yields fell sharply following the PPI results with the U.S. 2-Year nearing 4.05% intraday and the U.S. 10-Year decreasing below 4.38%. Investor sentiment was shaken by weaker-than-expected retail sales results for December. Sales fell 1.1% in December and were up 6% year-over-year. The Dow Jones Industrial Average (DIA) declined 1.82%, the S&P 500 (SPY) dropped 1.58%, and the NASDAQ 100 (QQQ) sunk 1.30%. The winning streak for QQQ was snapped at 7 consecutive sessions and SPY is now trading below its 50-day and 200-day moving averages. The streak of layoffs in tech companies continued as Microsoft announced on Wednesday it would be letting go 10,000 employees in preparation for slower revenue growth. Amazon, Salesforce, Meta, Twitter, and Alphabet have all announced layoffs recently. All U.S. factor strategies saw losses with S&P 500 Low Volatility (SPLV) dropping 2.14% and S&P 500 Dividend (SPYD) declining 2.00%. China (MCHI) slipped another 1.24% yesterday, dragging Emerging Markets (EEM, -68 bps) lower. Developed ex-U.S. Markets (EFA) dipped 35 bps as South Korea (EWY) fell 1.49% and Australia (EWA) returned -1.12%.
Sectors: All U.S. sectors finished down more than 1.20% on Wednesday with Consumer Staples (XLP, -2.73%) and Utilities (XLU, -2.40%) hit the hardest. XLP and XLU are the only sectors trading below relative 50-day and 200-day moving averages along with Technology (XLK). Industrials (XLI), Financials (XLF), and Energy (XLE) all declined more than 1.80% while Real Estate (XLRE) sunk 1.54%. XLI still sits within 5% of 52-week highs. All industries were also in the red. Oil & Gas Equipment & Services (XES) plummeted 4.57%, Regional Banks (KRE) fell 3.57%, and Banks (KBE) dipped 2.95%. Semiconductors (XSD, -5 bps) was the top performing industry.
Themes: A sea of red for global themes yesterday as all thematic segments posted negative returns. After posting strong returns on Tuesday, Blockchain (BLOK) reversed course and declined 4.66%. Disruptive Tech (ARKW) decreased 3.28% while Multi-Theme (ARKK), Cannabis (MJ), and FinTech (FINX) all fell more than 2%. Clean Energy (PBW) sunk just 13 bps and outperformed other segments. Robotics & AI (ROBO) dipped just 35 bps and still sits in overbought territory. Two Blockchain ETFs plunged more than 8% yesterday: the Bitwise Crypto Industry Innovators ETF (BITQ, -8.59%) and the Global X Blockchain ETF (BKCH, -8.34%). In 2022, BITQ dropped and BKCH fell .
Commodities & Yields: At Wednesday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.076% and the U.S. 10-Year Treasury Yield stood at 3.375%. U.S. Aggregate Bonds (AGG) increased 99 bps, 20+ Year Treasury Bonds (TLT) jumped 2.42%, and the U.S. Dollar (UUP) was flat. Broad Commodities (DJP) dropped 1.04% as Energy (DBE) fell 1.73%. Nickel (JJN) rose 4.83%, Silver (SLV) declined 2.00%, Natural Gas (UNG) tumbled 8.05%, and WTI Crude Oil (USO) decreased 1.91%.
Daily Note
1.18.2023
Equities: After back-to-back weeks of positive returns, major averages were mixed on Tuesday as investors digested the latest earnings results and unnerving recession rhetoric from several large banks including JPMorgan, Morgan Stanley, and Bank of America. The NASDAQ 100 (QQQ, +20 bps) notched its 7th straight day of gains yesterday while the Dow Jones Industrial Average (DIA) fell 1.13% and the S&P 500 (SPY) dipped 18 bps. Small-Caps (IJR, -35 bps) and Mid-Caps (IJH, -24 bps) were also down moderately. Goldman Sachs reported its worst quarterly earnings miss in a decade on Tuesday amid rising asset management expenses. The bank’s revenues plummeted 66% from a year earlier and laid off 3,200 employees last week. Morgan Stanley announced earnings beats yesterday along with declining revenues from a year ago. Revenue from its investment banking arm was down 49% from last year as IPO and merger and acquisition transaction volumes dropped sharply. All U.S. factor strategies were in the red yesterday except for S&P 500 High Beta (SPHB, +50 bps) and S&P 500 Growth (SPYG, +10 bps). Emerging Markets (EEM) slipped 56 bps as South Africa (EZA) declined 3.86% and China (MCHI) fell 1.22%. Developed ex-U.S. Markets (EFA, +31 bps) increased on strength from Switzerland (EWL, +1.21%) and Japan (EWJ, +95 bps).
Sectors: Mixed session for U.S. sectors yesterday as Technology (XLK, +45 bps) and Energy (XLE, +21 bps) outperformed. XLK was lifted by Software & Services (XSW, +1.12%) and Internet (XWEB, +83 bps) while XLE received a boost from Oil & Gas Equipment & Services (XES, +1.10%). XLE is currently trading 10.55% above its 200-day moving average. Consumer Discretionary (XLY), Consumer Staples (XLP), and Real Estate (XLRE) were the only other sectors to post gains, all rising less than 10 bps. Materials (XLB) lagged, falling 1.00%, followed by Communication Services (XLC, -94 bps) and Industrials (XLI, -85 bps). Biotech (XBI) and Metals & Mining (XME) were the worst performing industries on the day, declining 1.16% and 1.01%, respectively.
Themes: Blockchain (BLOK, +3.71%), Disruptive Tech (ARKW, +3.28%), and Multi-Theme (ARKK, +2.92%) outpaced other global thematic segments on Tuesday. BLOK has surged nearly 20% over the past month but has dropped 50.87% over the past year. Most segments were higher yesterday as Genomics (ARKG), Cybersecurity (HACK), Industrial Revolution (ARKQ), FinTech (FINX), and eSports & Video Games (ESPO) all rose more than 1%. Evolving Consumer (SOCL) fell 1.54% and was the only segment to decline more than 1%. 5 segments currently sit in overbought territory: Blockchain (BLOK), Online Retail (IBUY), Robotics & AI (ROBO), Space (UFO), and Wind (FAN). The KraneShares CSI China Internet ETF (KWEB) fell 3.36% yesterday and underperformed all other thematic ETFs.
Commodities & Yields: Broad Commodities (DJP) finished up 72 bps on Tuesday as Precious Metals (DBP, -69 bps) was the only broad-based sector to see losses. Silver (SLV) sunk 1.43%, Natural Gas (UNG) jumped 4.71%, and WTI Crude Oil (USO) added 1.16%. The U.S. Dollar (UUP) increased 29 bps, U.S. Aggregate Bonds (AGG) dropped 18 bps, and 20+ Year Treasury Bonds (TLT) declined 65 bps. At yesterday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.203% and the U.S. 10-Year Treasury Yield stood at 3.548%.
U.S. Sector & Industry Playbook
1.17.2023
An overview of the U.S. Sector ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
Daily Note
1.17.2023
Equities: On Friday, U.S. markets finished higher with the NASDAQ 100 (QQQ) rising 69 bps, the S&P 500 (SPY) adding 39 bos, and the Dow Jones Industrial Average (DIA) increasing 30 bps. All three major averages posted gains last week as QQQ jumped 4.53%, SPY returned +2.69%, DIA rose 2.01%. Earnings season kicked into full gear on Friday with several large banks reporting results. JPMorgan topped profit and revenue expectations but told investors that U.S. unemployment could hit 4.95% by Q4 2023. The firm also expects a mild recession in 2023. Bank of America also beat estimates on the top and bottom lines for Q4 but issued similar guidance around a potential recession in 2023. Citigroup saw Q4 profits decline 21% and Wells Fargo profits slumped. Additionally, Treasury Secretary Janet Yellen notified Congress on Friday that the U.S. will reach its statutory debt limit next Thursday, and asked House Speaker Kevin McCarthy to either suspend or increase the debt limit. This week, investors will be looking towards more earnings results, Retail Sales figures, and more housing data. U.S. factor strategies were mixed on Friday with S&P 500 High Beta (SPHB, +45 bps) and S&P 500 Growth (SPYG, +42 bps) outperforming. S&P 500 Pure Value (RPV) dipped 28 bps on the day. All factors saw positive returns last week. Developed ex-U.S. Markets (EFA) were up 53 bps as the U.K. (EWU, +77 bps) and Australia (EWA, +76 bps) saw solid returns. Emerging Markets (EEM, +66 bps) received a boost from China (MCHI, +1.62%). Last week, EFA and EEM both added more than 3%.
Sectors: Just U.S. sectors were lower on Friday: Real Estate (XLRE, -58 bps), Utilities (XLU, -36 bps), and Industrials (XLI, -12 bps). Consumer Discretionary (XLY) and Financials (XLF) were the best performing sectors, climbing 94 bps and 75 bps, respectively. Materials (XLB) added 61 bps while Consumer Staples (XLP) and Health Care (XLV) both gained more than 40 bps. XLF and XLB are both approaching overbought territory while Communication Services (XLC) currently sits in overbought territory. Last week, XLY surged 5.78%, Technology (XLK) gained 4.62%, XLRE added 4.44%, and XLB increased 4.26%. XLV and XLP were the only sectors to finish in the red on the week.
Themes: Most thematic segments closed higher on Friday led by Disruptive Tech (ARKW, +2.35%). Big Data (AIQ, +1.66%), Evolving Consumer (SOCL, +1.52%), and Multi-Theme (ARKK, +1.41%) followed. Casinos & Gaming (BETZ), Advanced Materials (REMX), Wind (FAN), and NextGen Transportation (DRIV) were the only segments to post losses. Blockchain (BLOK), Genomics (ARKG), Online Retail (UFO), FinTech (FINX), and eSports & Video Games (ESPO) all gained more than 1% on Friday. The KraneShares CSI China Internet ETF (KWEB) climbed 2.91% on Friday and outpaced all other thematic ETFs. Most thematic segments were in the green last week. Disruptive Tech (ARKW) rocketed more than 14% on the week.
Commodities & Yields: U.S. Aggregate Bonds (AGG) sunk 37 bps, 20+ Year Treasury Bonds (TLT) dropped 94 bps, and the U.S. Dollar (UUP) slipped 4 bps on Friday. At Friday's close, the U.S. 2-Year Treasury Yield stood at 4.224% and the U.S. 10-Year Treasury Yield stood at 3.498%. Broad Commodities (DJP) rose 78 bps as Energy (DBE) increased 1.27% and Precious Metals (DBP) gained 1.42%. Natural Gas (UNG) declined 6.21%, Gasoline (UGA) was up 3.22%, and Gold (GLD) climbed 1.20%.
U.S. Factor Playbook
1.17.2023
An overview of the U.S. Factor ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
Daily Note
1.13.2023
Equities: U.S. markets rose modestly yesterday as the Consumer Price Index (CPI) dropped for the 6th consecutive month in December, falling 0.1% month-over-month. Gasoline prices contributed significantly to the decline, falling 9.4% month-over-month, while food prices increased 0.3% and shelter prices rose 0.8%. Prices are still 6.5% above levels seen one year ago. The Dow Jones Industrial Average (DIA) added 66 bps, the NASDAQ 100 (QQQ) gained 54 bps, and the S&P 500 (SPY) increased 36 bps. All three major averages are on pace for to finish higher this week. Small-Caps outperformed again on Thursday with the Russell 2000 (IWM) climbing 1.68%. The next Federal Open Market Committee meeting and rate decision is slated for February 1 and there is currently a 96.2% probability of a 50 bps rate increase and a 3.8% probability of a 75 bps rate hike, according to the CME FedWatch Tool. On Friday, JPMorgan Chase, Wells Fargo, Citigroup, and Bank of America will report earnings along with Delta Airlines, BlackRock, and United Health. S&P 500 Pure Growth (RPG) and S&P 500 High Beta (SPHB) led other U.S. factor strategies yesterday, rising 1.00% and 95 bps, respectively. All factors saw gains except for S&P 500 Low Volatility (SPLV, -58 bps). Developed ex-U.S. Markets (EFA) increased 1.48% as Japan (EWJ) jumped 2.41% and Germany (EWG) advanced 1.68%. Emerging Markets (EEM) added 49 bps with South Africa (EZA) climbing 2.18% and China (MCHI) declining 73 bps.
Sectors: 8 of the 11 U.S. sectors finished higher on Thursday. Energy (XLE) jumped 1.91% lifted by Oil & Gas Exploration & Production (XOP, +2.95%) and Oil & Gas Equipment & Services (XES, +2.55%). Real Estate (XLRE) and Communication Services (XLC) both gained more than 1% while Technology (XLK) added 74 bps. XLC is nearing overbought territory and is trading more than 6% above its 50-day moving average. Consumer Staples (XLP) dropped 79 bps, Utilities (XLU) fell 68 bps, and Health Care (XLV) declined 32 bps. On the industry level, Biotech (XBI) surged 4.20%, Transportation (XTN) climbed 2.23%, and Metals & Mining (XME) added 2%. Insurance (KIE, -9 bps) was the only industry to see losses on the day.
Themes: Strength in global themes continued yesterday with three thematic segments posting losses: Evolving Consumer (SOCL, -90 bps), eSports & Video Games (ESPO, -84 bps), and Cybersecurity (HACK, -9 bps). SOCL remains in overbought territory. Cannabis (MJ) and Blockchain (BLOK) outpaced other segments, both climbing more than 4.5%. Biotech (SBIO) jumped 4.31% and Genomics (ARKG) rose 3.45% while Clean Energy (PBW), Advanced Materials (REMX), Disruptive Tech (ARKW), NextGen Transportation (DRIV), and Multi-Theme (ARKK) all gained more than 2%. The KraneShares CSI China Internet ETF (KWEB) sunk 1.38% on Thursday and was the worst performing thematic ETF.
Commodities & Yields: At Thursday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.128% and the U.S. 10-Year Treasury Yield stood at 3.427%. U.S. Aggregate Bonds (AGG) were up 72 bps, 20+ Year Treasury Bonds (TLT) jumped 1.97%, and the U.S. Dollar (UUP) sunk 97 bps. Broad Commodities (DJP) gained 1.47% with all broad-based sectors seeing positive returns. Nickel (JJN) increased 6.81%, Tin (JJT) rose 4.19%, and Gold (GLD) was up 1.16%.
Daily Note
1.12.2023
Equities: On Wednesday, U.S. markets advanced with the NASDAQ 100 (QQQ, +1.73%) seeing positive returns for the 4th consecutive day and the S&P 500 (SPY, +1.26%) and the Dow Jones Industrial Average (DIA, +75 bps) both finishing higher for the 2nd straight session. SPY is now trading above its 50-day and 200-day moving averages. Small-Caps (IJR) and Mid-Caps (IJH) each gained more than 1%. Many analysts are expecting Thursday’s Consumer Price Index (CPI) results to show cooling inflation, which lifted investor sentiment. Treasury yields decreased once again with the U.S. 10-Year falling below 3.55%. On the employment front, BlackRock, the world’s largest asset manager, announced yesterday it will layoff 500 employees, or about 2.5% of its workforce. Bed Bath & Beyond rocketed 68% on Wednesday and led other so-called ‘meme stocks’ such as AMC, which climbed 21% on the day, and Gamestop. Growth-oriented pockets of the markets posted solid returns yesterday as S&P 500 High Beta (SPHB, +1.68%) and S&P 500 Growth (SPYG, +1.37%) outpaced other U.S. factor strategies. All factors finished in the green with S&P 500 Value (SPYV) also adding 1.11%. Developed ex-U.S. Markets (EFA, +76 bps) benefitted from gains from Australia (EWA, +1.39%) and Germany (EWG, +1.22%). Emerging Markets (EEM) rose 42 bps with Brazil (EWZ) returning +2.29% and Turkey (TUR) declining 3.86%. China (MCHI) increased another 81 bps on the day.
Sectors: All U.S. sectors were up on Wednesday with Real Estate (XLRE) surging 3.63% and Consumer Discretionary (XLY) jumping 2.70%. Technology (XLK) and Materials (XLB) both added more than 1.50% while Industrials (XLI), Financials (XLF), and Utilities (XLU) all rose more than 80 bps. XLK was lifted by Internet (XWEB, +3.11%) and Software & Services (XSW, +1.69%). XLI sits just 2.61% below 52-week highs and is currently trading 8.54% above its 200-day moving average. Consumer Staples (XLP) underperformed as it returned just +5 bps. Telecom (XTL, -18 bps) and Oil & Gas Equipment & Services (XES, -16 bps) dipped 16 bps were the only industries to post losses on the day. Homebuilders (XHB) added 2.57% and is approaching overbought territory.
Themes: Another excellent day for global themes as Biotech (SBIO, -29 bps) was the only thematic segment to finish in the red yesterday. Solar (TAN) and Clean Energy (PBW) outperformed, both jumping 4.11%. Genomics (ARKG) and Multi-Theme (ARKK) both increased more than 3% while Online Retail (IBUY) gained 2.97% and Advanced Materials (REMX) climbed 2.86%. Wind (FAN) also increased 2.28% and is nearing overbought territory. Water (PHO, +1.37%) had another strong showing and now sits within 1.04% of 52-week highs.
Commodities & Yields: U.S. Aggregate Bonds (AGG) climbed 62 bps, 20+ Year Treasury Bonds (TLT) increased 1.63%, and the U.S. Dollar (UUP) was flat. At Wednesday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.214% and the U.S. 10-Year Treasury Yield stood at 3.535%. Broad Commodities (DJP) rose 96 bps on strength from Energy (DBE, +2.72%) and Industrial Metals (DBB, +1.40%). Gasoline (UGA) jumped 4.84%, WTI Crude Oil (USO) gained 3.26%, and Tin (JJT) added 2.78%.
Daily Note
1.11.2023
Equities: U.S. markets posted gains on Tuesday ahead of Thursday’s Consumer Price Index (CPI) report and the kickoff of earnings season later this week. The NASDAQ 100 (QQQ) notched its 3rd straight day of positive returns, rising 85 bps, while the S&P 500 (SPY) climbed 70 bps and the Dow Jones Industrial Average (DIA) added 58 bps. Small-caps outperformed as the Russell 2000 (IWM) jumped 1.48%. Fed Chairman Jerome Powell spoke in Sweden yesterday and emphasized that the Federal Reserve’s decisions must be free of political influence, but did not provide any information on future rate hikes. JPMorgan CEO Jamie Dimon said Tuesday that the Fed may need to increase interest rates to 6% in order to tackle historically high inflation. Additionally, Coinbase announced a second round of major job cuts yesterday totaling 20% of its workforce. Most U.S. factor strategies finished higher with S&P 500 High Beta (SPHB, +2.76%) and S&P 500 Pure Value (RPV, +97 bps) leading the way. S&P 500 Momentum (SPMO) declined 99 bps and S&P 500 Low Volatility (SPLV) dropped 59 bps. Emerging Markets (EEM) increased 72 bps on strength from Brazil (EWZ, +2.60%) and China (MCHI, +1.01%). EEM now sits in overbought territory. MCHI is up nearly 30% over the past 3 months and is trading well above its 50-day and 200-day moving averages. Developed ex-U.S. Markets (EFA) added 29 bps as Germany (EWG) gained 1.01% and Japan (EWJ) dipped 24 bps.
Sectors: All U.S. sectors finished in the green yesterday except for Consumer Staples (XLP), which sunk 13 bps. Communication Services (XLC) and Consumer Discretionary (XLY) were the top performing sectors, climbing 1.51% and 1.26%, respectively. Materials (XLB) also rose 1.00% while Health Care (XLV) and Energy (XLE) each gained more than 70 bps. Utilities (XLU, +3 bps) and Real Estate (XLRE, +29 bps) were the only other sectors not to gain more than 50 bps on the day. Industrials (XLI), XLV, XLE, and XLP are all trading within 7% of relative 52-week highs. On the industry level, Biotech (XBI, +2.84%), Oil & Gas Equipment & Services (XES, +2.60%), Health Care Services (XHS, +2.54%), Metals & Mining (XME, +2.48%), and Retail (XRT, +2.34%) saw the best returns.
Themes: Global themes were strong on Tuesday with all segments seeing positive returns and most segments advancing more than 1.25%. Genomics (ARKG), Clean Energy (PBW), and Solar (TAN) outperformed, all climbing more than 3%. Blockchain (BLOK) added another 2.72% followed by Disruptive Tech (ARKW, +2.57%), Multi-Theme (ARKK, +2.47%), Biotech (SBIO, +2.37%), and Evolving Consumer (SOCL, +2.35%). SOCL is up almost 24% over the past three months and sits in overbought territory. Cybersecurity (HACK) lagged, rising just 9 bps.
Commodities & Yields: At Tuesday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.241% and the U.S. 10-Year Treasury Yield stood at 3.611%. The U.S. Dollar (UUP) added 7 bps, U.S. Aggregate Bonds (AGG) slipped 38 bps, and 20+ Year Treasury Bonds (TLT) declined 1.66%. Broad Commodities (DJP) fell 31 bps with Agriculture (DBA) down 1.07% and Industrial Metals (DBB) up 1.12%. Natural Gas (UNG) sunk 8.05%, Copper (CPER) rose 1.65%, and Gold (GLD) increased 37 bps.
Global Thematic Playbook
1.11.2023
An overview of the Global Thematic ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
U.S. Factor Playbook
1.10.2023
An overview of the U.S. Factor ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
Daily Note
1.10.2023
Equities: The tech-heavy NASDAQ 100 (QQQ) notched its second straight day of gains on Monday, rising 65 bps, while the Dow Jones Industrial Average (DIA) and the S&P 500 (SPY) declined 29 bps and 6 bps, respectively. Small-Caps also closed higher with the Russell 2000 (IWM) adding 17 bps. Treasury yields decreased for the second consecutive session with the U.S. 2-Year sinking below 4.20% intraday. Goldman Sachs announced it will be cutting up to 3,200 jobs this week following a cost review. Morgan Stanley, Citigroup, and Barclays have also seen cuts in recent months. U.S. factor strategies were mixed yesterday with S&P 500 High Beta (SPHB, +1.36%) posting strong returns. S&P 500 Growth (SPYG) was flat, S&P 500 Low Volatility (SPLV) slipped 68 bps, and S&P 500 Momentum (SPMO) dropped 1.01%. Emerging Markets (EEM) climbed 75 bps on Monday as Taiwan (EWT) increased 1.52% and South Africa (EZA) gained 1.19%. China (MCHI) rose 36 bps and now sits in overbought territory. Developed ex-U.S. Markets (EFA, +43 bps) were lifted by South Korea (EWY, +2.10%) and the Netherlands (EWN, +1.69%). Hong Kong (EWH) also dipped 50 bps.
Sectors: Technology (XLK) jumped 1.16% yesterday and handily outpaced other U.S. sectors. XLK was boosted by Software & Services (XSW, +2.45%), Semiconductors (XSD, +2.43%), and Internet (XWEB, +1.60%). Utilities (XLU), Materials (XLB), and Consumer Discretionary (XLY) all rose more than 60 bps while Communication Services (XLC) added 16 bps. XLC is trading more than 33.50% below 52-week highs. All other sectors finished in the red with Health Care (XLV, -1.67%) falling the furthest. Consumer Staples (XLP) declined 98 bps and Industrials (XLI) dropped 45 bps. Biotech (XBI) underperformed other industries on the day, falling 2.27%.
Themes: Solid day for global themes as just four thematic segments posted losses on Tuesday: Cannabis (MJ, -2.30%), Biotech (SBIO, -2.27%), Space (UFO, -79 bps), and Cybersecurity (HACK, - 2 bps). Multi-Theme (ARKK) surged 4.59% and was the top performing segment. ARKK benefitted from Tesla (6.83% weight*) rising nearly 6% on the day. ARKK has plunged 61.13% in the last year but has gathered $1.4 billion in net inflows in the period. Disruptive Tech (ARKW) jumped 4.18% while Genomics (ARKG), Blockchain (BLOK), and Clean Energy (PBW) all returned more than +3%. Big Data (AIQ) and FinTech (FINX) climbed 2.36% and 2.34%, respectively.
Commodities & Yields: U.S. Aggregate Bonds (AGG) added 25 bps, 20+ Year Treasury Bonds (TLT) increased 53 bps, and the U.S. Dollar (UUP) sunk 61 bps. At Tuesday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.201% and the U.S. 10-Year Treasury Yield stood at 3.534%. Broad Commodities (DJP) gained 81 bps as Industrial Metals (DBB) shot up 3.80% and Energy (DBE) rose 1.86%. Natural Gas (UNG) climbed 4.54%, Aluminum (JJU) surged 5.14%, and Copper (CPER) rose 2.10%.
Daily Note
1.9.2023
Equities: On Friday, U.S. markets jumped on an encouraging employment situation report which showed that the U.S. economy added 223K jobs in December, above analyst expectations. Additionally, wages grew slower than anticipated, indicating that inflation may be slowing. The NASDAQ 100 (QQQ) climbed 2.76%, the S&P 500 (SPY) rose 2.29%, and the Dow Jones Industrial Average (DIA) added 2.14%. Treasury yields fell sharply with the U.S. 2-Year approaching 4.25%. All three major averages ended the week higher last week with DIA up 1.49%, SPY gaining 1.48%, and QQQ increasing 95 bps. SPY and QQQ are still trading below relative 50-day and 200-day moving averages. This week, investors will be looking towards a speech from Fed Chairman Jerome Powell on Tuesday as well as Consumer Price Index (CPI) results released on Thursday. All U.S. factor strategies were up more than 1.60% on Friday with S&P 500 Quality (SPHQ, +2.75%) and S&P 500 High Beta (SPHB, +2.73%) leading the charge. Last week, S&P 500 Pure Value (RPV) handily outperformed other factors, rising 5.87%. S&P 500 Pure Growth (RPG) added just 38 bps on the week. Developed ex-U.S. Markets (EFA) surged 2.56% on Friday as South Korea (EWY) rocketed 5.05%. Australia (EWA) and the Netherlands (EWN) were also both up more than 3% on the day. Emerging Markets (EEM, +2.09%) were lifted by Brazil (EWZ, +3.85%) and Taiwan (EWT, +3.30%) on Friday. EEM and EFA gained 5.73% and 3.79%, respectively, last week.
Sectors: All U.S. sectors posted positive returns on Friday with Materials (XLB, +3.44%), Technology (XLK, +2.93%), and Real Estate (XLRE, +2.91%) outperforming. XLB received a boost from Metals & Mining (XME, +4.49%) and XLK was lifted by Semiconductors (XSD, +4.60%). Industrial (XLI) and Consumer Staples (XLP) both added more than 2.50% while Consumer Discretionary (XLY), Financials (XLF), and Utilities (XLU) all climbed more than 2%. XLI is now trading within 3.63% of 52-week highs. Health Care (XLV) lagged, rising just 92 bps. Last week, XLV was the only sector to see losses, dipping 13 bps. Communication Services (XLC) was the best performer on the week, jumping 5.02%.
Themes: Genomics (ARKG) declined 35 bps on Friday and was the lone global thematic segment to finish lower. Most segments returned more than 2.25% with Advanced Materials (REMX, +5.95%) seeing the best returns. Solar (TAN) was also strong, rising 4.17% while NextGen Transportation (DRIV), Wind (FAN), Digital Payments (IPAY), and Industrial Revolution (ARKQ) all increased more than 3%. All segments posted gains last week except for Cloud Computing (SKYY), Cybersecurity (HACK), and Disruptive Tech (ARKW). Advanced Materials (REMX) rose 8.44% on the week followed by Evolving Consumer (SOCL), which climbed 7.84%. SOCL is approaching overbought territory and is currently trading 13.42% above its 50-day moving average.
Commodities & Yields: Broad Commodities (DJP) closed higher by 94 bps on Friday as Precious Metals (DBP) added 1.94% and Industrial Metals (DBB) gained 2.18%. Gold (GLD) increased 1.87%, Copper (CPER) was up 2.63%, and Nickel (JJN) rose 3.24%. Energy (DBE) was relatively flat on the day. U.S. Aggregate Bonds (AGG) climbed 1.09%, 20+ Year Treasury Bonds (TLT) added 1.84%, and the U.S. Dollar (UUP) sunk 1.31%. At Friday's closing bell, the U.S. 2-Year Treasury Yield stood at 4.258% and the U.S. 10-Year Treasury Yield stood at 3.564%.
U.S. Sector & Industry Playbook
1.9.2023
An overview of the U.S. Sector ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
U.S. Size & Style Playbook
1.9.2023
An overview of the broad U.S. Size & Style ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
Daily Note
1.6.2023
Equities: Ahead of Friday’s key employment situation report, U.S. markets declined on Thursday after rising on Wednesday. The NASDAQ 100 (QQQ) sunk 1.57%, the S&P 500 (SPY) dropped 1.14%, and the Dow Jones Industrial Average (DIA) fell 1.00%. Yields also rose with the U.S. 2-Year nearing 4.50% intraday. Investor confidence was shaken by the Fed Minutes released on Wednesday which indicated that Fed officials expect high interest rates moving forward and no rate cuts this year. Sentiment was boosted by the ADP Employment Report results released yesterday which showed that private payrolls increased by 235K month-over-month in December, well above analyst expectations. Several Federal Reserve officials are also slated to speak on Friday. S&P 500 Enhanced Value (SPVU, +26 bps) was the only U.S. factor strategy to see positive returns on Thursday while growth tilted pockets of the markets continued to underperform. S&P 500 High Beta (SPHB) and S&P 500 Growth (SPYG) declined 1.41% and 1.16%, respectively. Developed ex-U.S. Markets (EFA, -1.00%) were pulled lower by losses from Australia (EWA, -1.42%) and Japan (EWJ, -1.35%). Emerging Markets (EEM) dipped 30 bps as Brazil (EWZ) rose 3.45%, China (MCHI) inched lower by 8 bps, and Turkey (TUR) dropped 7.88%.
Sectors: After strong returns on Wednesday, Real Estate (XLRE) slumped 2.93% and underperformed other U.S. sectors yesterday. Utilities (XLU) also declined 2.16% while Technology (XLK), Materials (XLB), Industrials (XLI), Health Care (XLV), and Consumer Staples (XLP) were all down more than 1%. Only two sectors posted gains on Thursday: Energy (XLE, +1.82%) and Communication Services (XLC, +14 bps). XLC is the only industry currently trading above its 50-day moving average. XLE received a boost from Oil & Gas Equipment & Services (XES, +1.53%). Metals & Mining (XME, +54 bps) and Oil & Gas Exploration & Production (XOP, +15 bps) were the only other industries in the green while Software & Services (XSW, -3.40%) lagged.
Themes: Global thematic segments reversed course from Wednesday’s gains on Thursday with only three segments finishing higher: Advanced Materials (REMX, +78 bps), Biotech (SBIO, +44 bps), and Space (UFO, +35 bps). Cloud Computing (SKYY), Disruptive Tech (ARKW), Cybersecurity (HACK), and Solar (TAN) were the worst performing segments, all falling more than 3%. Cloud Computing (SKYY) sits just 13 bps above 52-week lows. Blockchain (BLOK) sunk another 2.60% after Silvergate Capital, a crypto focused bank, plummeted nearly 43% after reporting that digital asset deposits decreased by $8.1 billion in Q4 2022.
Commodities & Yields: At Thursday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.453% and the U.S. 10-Year Treasury Yield stood at 3.707%. U.S. Aggregate Bonds (AGG) dipped 8 bps, 20+ Year Treasury Bonds (TLT) added 42 bps, and the U.S. Dollar (UUP) rose 93 bps. Broad Commodities (DJP) finished down 1.15% on weakness from Precious Metals (DBP, -1.42%). Silver (SLV, -2.28%) and Gold (GLD, -1.25%) were weak while Natural Gas (UNG) plunged 9.60%.
Daily Note
1.5.2023
Equities: Major averages rebounded slightly on a busy macroeconomic day on Wednesday. The S&P 500 (SPY) gained 77 bps while the NASDAQ 100 (QQQ) and the Dow Jones Industrial Average (DIA) added 48 bps and 40 bps, respectively, as markets digested the latest Fed Minutes which showed that officials expect interest rates to remain elevated for ‘some time’ in an effort to tame inflation. The minutes also noted that no Federal Open Market Committee members expect rate cuts in 2023. The target range for the benchmark fed funds rate currently stands at 4.25% to 4.5%, the highest level in 15 years. Job Openings & Labor Turnover (JOLTS) results released yesterday showed that there were 10.46 million open jobs in November which was above expectations and indicates continued strength in the labor market. Additionally, the ISM Manufacturing Index contracted for the first time in 31 months indicating. All U.S. factor strategies finished higher except for S&P 500 Momentum (SPMO, -16 bps). S&P 500 Pure Value (RPV, +2.88%) and S&P 500 High Beta (SPHB, +2.83%) were the top performing factors. Emerging Markets (EEM) surged 3.01% as China (MCHI) jumped 5.91% and South Africa (EZA) rose 3.73%. Developed ex-U.S. Markets (EFA) added 1.33% following gains from South Korea (EWY, +3.95%) and Hong Kong (EWH, +3.07%). European markets were also strong with Germany (EWG), France (EWQ), and the Netherlands (EWN) all rising more than 2.50%.
Sectors: Real Estate (XLRE) outpaced other U.S. sectors yesterday, climbing 2.29%. Communication Services (XLC), Materials (XLB), Financials (XLF), and Consumer Discretionary (XLY) all increased more than 1.40%. Energy (XLE) dipped 1 bps and was the only sector to finish in the red. XLE is still trading more than 35% above 52-week lows. All industries were higher on Wednesday with Retail (XRT), Metals & Mining (XME), Homebuilders (XHB), Transportation (XTN), Semiconductors (XSD), Health Care Equipment (XHE), and Biotech (XBI) all gaining more than 2%.
Themes: Excellent day for global themes as all segments posted positive returns with most segments returning more than +2%. Multi-Theme (ARKK) outperformed, climbing 4.33%. Evolving Consumer (SOCL), Cannabis (MJ), and Casinos & Gaming (BETZ) were all up over 4% while Online Retail (IBUY) and Genomics (ARKG) both added more than 3.75%. Cybersecurity (HACK, +39 bps) and Cloud Computing (SKYY) were the only segments not to gain more than 1% on the day. The KraneShares CSI China Internet ETF (KWEB) was strong once again as it rocketed 8.81%. KWEB is nearing overbought territory and is trading more than 20% above its 50-day and 200-day moving averages.
Commodities & Yields: The U.S. Dollar (UUP) dipped 36 bps, U.S. Aggregate Bonds (AGG) rose 55 bps, and 20+ Year Treasury Bonds (TLT) increased 1.37%. At Wednesday’s close, the U.S. 2-Year Treasury Yield stood at 4.364% and the U.S. 10-Year Treasury Yield stood at 3.688%. Broad Commodities (DJP) dropped another 2.03% as Energy (DBE) fell 2.85% and Agriculture (DBA) sunk 1.20%. Gold (GLD) rose 94 bps, Wheat (WEAT) declined 3.94%, and WTI Crude Oil (USO) fell nearly 5%.
Daily Note
1.4.2023
Equities: After rising early in the session, U.S. markets finished lower on the first trading day of 2023 as Tesla declined more than 12% after reporting disappointing vehicle delivery figures for Q4 2022 (+40% year-over-year). The NASDAQ 100 (QQQ) fell 68 bps, the S&P 500 (SPY) decreased 42 bps, and the Dow Jones Industrial Average (DIA) dipped 3 bps. Apple also sunk nearly 4% on reports that the company will cut production amid weakened demand. In 2022, Tesla plunged more than 65% while Apple dropped more than 26%. Investors remain wary of a potential recession amid faltering growth and interest rate hikes. The U.S. 10-Year Treasury Yield increased yesterday, rising above 3.80% intraday. Value-tilted pockets of the markets outperformed growth-heavy names on Tuesday with S&P 500 Pure Value (RPV) rising 51 bps while S&P 500 Pure Growth (RPG) sunk more than 2%. Most U.S. factor strategies saw losses on the day. Emerging Markets (EEM) gained 84 bps on strength from China (MCHI, +3.39%) and South Africa (EZA, +3.11%). Brazil (EWZ) also declined 7.44%. Developed ex-U.S. Markets (EFA, +88 bps) benefitted from gains from Hong Kong (EWH, +2.43%) and the Netherlands (EWN, +1.96%).
Sectors: 4 of the 11 U.S. sectors posted positive returns on Tuesday led by Communication Services (XLC, +1.29%). Real Estate (XLRE) and Financials (XLF) were both up around 35 bps while Industrials (XLI) added 21 bps and Utilities (XLU) was flat. Energy (XLE) was the worst performing sectors yesterday, falling 3.51% on weakness from Oil & Gas Equipment & Services (XES, -5.69%) and Oil & Gas Exploration & Production (XOP¸ -5.59%). Technology (XLK, -95 bps) was also pulled lower by Semiconductors (XSD, -1.42%). Consumer Discretionary (XLY) was down 60 bps and now sits 1.69% above 52-week lows. XLI and Health Care (XLV) are the only sectors now trading above relative 50-day and 200-day moving averages.
Themes: Global thematic segments were split yesterday as Multi-Theme (ARKK, -2.50%) and Clean Energy (PBW, -2.48%) lagged. Genomics (ARKG), Biotech (SBIO), and Disruptive Tech (ARKW) all dropped more than 2%. Advanced Materials (REMX) fell 1.93% and hit new 52-week lows. Evolving Consumer (SOCL, +2.61%) saw solid returns on the day followed by Online Retail (IBUY, +1.23%), eSports & Video Gamesa (ESPO, +1.19%), and Digital Infrastructure (SRVR, +1.03%). None of the 28 thematic segments are currently trading above relative 50-day and 200-day moving averages: Water (PHO) and Biotech (SBIO). The KraneShares CSI China Internet ETF (KWEB) outpaced all other thematic ETFs yesterday, climbing 5.30%. In 2022, KWEB plummeted % but gathered $ in net inflows.
Commodities & Yields: Broad Commodities (DJP) decreased 2.31% yesterday as Energy (DBE) dropped 4.01% and Agriculture (DBA) fell 1.09%. Natural Gas (UNG) plunged 9.36% and Gasoline (UGA) declined 4.79%. U.S. Aggregate Bonds (AGG) added 59 bps, 20+ Year Treasury Bonds (TLT) jumped 1.91%, and the U.S. Dollar (UUP) gained 1.08%. At Tuesday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.391% and the U.S. 10-Year Treasury Yield stood at 3.782%.
Global Thematic Playbook
1.4.2023
An overview of the Global Thematic ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
U.S. Factor Playbook
1.3.2023
An overview of the U.S. Factor ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
U.S. Sector & Industry Playbook
1.3.2023
An overview of the U.S. Sector ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
Daily Note
1.3.2023
Equities: Last Friday, U.S. markets declined slightly with the S&P 500 (SPY) sinking 26 bps, the Dow Jones Industrial Average (DIA) dropping 22 bps, and the NASDAQ 100 (QQQ) dipping just 6 bps. All three major averages finished down in 2022 with all three seeing the worst yearly returns since 2008. Tech-heavy QQQ plunged 32.58%, SPY decreased 18.17%, and DIA fell 7.01%. QQQ and SPY are currently trading below relative 50-day and 200-day moving averages. This week, investors will be looking towards November's Job Openings & Labor Turnover (JOLTS) results and the Employment Situation results for December. S&P 500 Momentum (SPMO, +18 bps) was the only U.S. factor strategy to post gains on Friday while S&P 500 Low Volatility (SPLV, -78 bps) underperformed. Growth-oriented pockets of the markets lagged in 2022 with S&P 500 Growth (SPYG) declining 29.41%. S&P 500 Value (SPYV) dropped just 5.29% on the year. Emerging Markets (EEM) sunk 1.38% on Friday as China (MCHI) dropped 1.84%. EEM and MCHI tumbled 20.56% and 22.76%, respectively, in 2022. Developed ex-U.S. Markets (EFA) were down 1.03% on Friday on weakness from . EFA declined 14.35% last year.
Sectors: Energy (XLE, +63 bps) and Communication Services (XLC, +4 bps) were the lone U.S. sectors to finish higher on Friday. Utilities (XLU, -96 bps) and Real Estate (XLRE, -91 bps) lagged other sectors on Friday while Materials (XLB) was also down 70 bps. On the industry level, Biotech (XBI) added 89 bps and Oil & Gas Equipment & Services (XES) rose 69 bps on Friday while Homebuilders (XHB) fell 97 bps. In 2022, XLE rocketed 64.17% and handily outpaced other sectors. XLU gained 1.42% and was the only other sector in the green for the year. Meanwhile, XLC and Consumer Discretionary (XLY) both sunk more than 35% while Technology (XLK) dropped 27.73%. Internet (XWEB) was the worst performing industry in 2022, plummeting 57.31%.
Themes: Mixed session for global themes on Friday with Space (UFO) and Clean Energy (PBW) both rising more than 1%. eSports & Video Games (ESPO) dipped 1.76%, Digital Infrastructure (SRVR) declined 1.36%, and Water (PHO) dropped 1.11%. Advanced Materials (REMX) inched higher by 5 bps and remains near oversold territory. 2022 was a bleak year for global themes as all segements posted negative returns. Disruptive Tech (ARKW), Multi-Theme (ARKK), Blockchain (BLOK), and Cannabis (MJ) were hit the hardest, all sinking more than 60%. Online Retail (IBUY), Genomics (ARKG), and FinTech (FINX) were all down more than 50%. Solar (TAN) was the best performing segment in 2022, dipping 5.24%.
Commodities & Yields: At Friday's closing bell, the U.S. 2-Year Treasury Yield stood at 4.376% and the U.S. 10-Year Treasury Yield stood at 3.746%. At the beginning of 2022, the 2-Year was below 1% and the 10-Year was below 2%. The U.S. Dollar (UUP) decreased 32 bps, U.S. Aggregate Bonds (AGG) declined 47 bps, and 20+ Year Treasury Bonds (TLT) dropped 1.11% on Friday. UUP rose 9.46% in 2022 while AGG was down 13.02%. Broad Commodities (DJP) finished Friday up 21 bps as Energy (DBE) increased 1.80%. Gasoline (UGA) jumped 4.30% on the day. UGA was up 46.34% in 2022 while WTI Crude Oil (USO) jumped 28.97%.
Daily Note
12.23.2022
Equities: After posting solid gains on Wednesday, U.S. markets fell sharply on Thursday as recession fears remained in focus. The NASDAQ 100 (QQQ) declined 2.45%, the S&P 500 (SPY) dropped 1.43%, and the Dow Jones Industrial Average (DIA) fell 1.00%. All three major averages are poised for a third straight week of losses. Small-Caps (IJR) and Mid-Caps (IJH) were both down more than 1% as well. The U.S. 2-Year Treasury Yield jumped back above 4.27% while the U.S. 10-Year Treasury Yield was relatively flat. All U.S. factor strategies finished lower yesterday with S&P 500 High Beta (SPHB, -2.60%) and S&P 500 Pure Growth (RPG, -1.80%) falling the furthest. Developed ex-U.S. Markets (EFA) fell 82 bps on weakness from Australia (EWA, -1.65%) and the Netherlands (EWN, -1.42%). EFA is still trading above its 50-day and 200-day moving averages. Emerging Markets (EEM) decreased 89 bps as Taiwan (EWT) declined 1.29% and Thailand (THD) dipped 1.23%.
Sectors: All U.S. sectors declined on Thursday with Consumer Discretionary (XLY, -2.52%), Technology (XLK, -2.50%), and Energy (XLE, -2.30%) hit the hardest. Semiconductors (XSD, -3.16%) impacted XLK while Oil & Gas Exploration & Production (XOP, -3.15%) dragged XLE lower. XLY hit new 52-week lows and is approaching oversold territory. Industrials (XLI) dropped 1.27% while all other sectors were down less than 1%. Biotech (XBI) added 29 bps and was the lone industry to see positive returns.
Themes: Biotech (SBIO) gained 66 bps and was the only global thematic segment to finish higher on Thursday. Most segments were lower by more than 1.50%. Advanced Materials (REMX) and Disruptive Tech (ARKW) were the worst performers, dropping 3.98% and 3.92%, respectively. Clean Energy (PBW), Industrial Revolution (ARKQ), Multi-Theme (ARKK), Cannabis (MJ), and Solar (TAN) all sunk more than 3% and hit new 52-week lows. Blockchain (BLOK) and FinTech (FINX) also sit at 52-week lows. Cannabis (MJ) and Advanced Materials (REMX) sit in oversold territory.
Commodities & Yields: The U.S. Dollar (UUP) added 14 bps, U.S. Aggregate Bonds (AGG) were relatively flat, and TIPS Bonds (TIP) fell 55 bps. At Thursday's closing bell, the U.S. 2-Year Treasury Yield stood at 4.280% and the U.S. 10-Year Treasury Yield stood at 3.682%. Broad Commodities (DJP) sunk 1.65% as Natural Gas (UNG) fell 6.17%, Copper (CPER) dropped 1.47%, and Cotton (BAL) declined 4.69%.
Daily Note
12.22.2022
Equities: U.S. markets rallied on Wednesday with all three major averages climbing more than 1% after earnings results from Nike and FedEx boosted investor sentiment. The Dow Jones Industrial Average (DIA) gained 1.59%, the S&P 500 (SPY) rose 1.50%, and the NASDAQ 100 (QQQ) added 1.45% while treasury yields were relatively flat. Nike surged more than 13% yesterday after reporting earnings and revenue results that beat analyst expectations while FedEx jumped 5% after earnings results beat estimates. FedEx also shared its substantial cost cutting measures to battle weak demand and inflationary pressures. According to results released on Wednesday, existing home sales fell 7.7% month-over-month in November, the 10th consecutive monthly decline. All U.S. factor strategies were up more than 1% yesterday with S&P 500 High Beta (SPHB, +2.16%) and S&P 500 Pure Growth (RPG, +1.83%) leading the charge. Developed ex-U.S. Markets (EFA) increased 1.04% as Switzerland (EWL) and the Netherlands (EWN) both gained 1.63%. Emering Markets (EEM, +90 bps) were boosted by South Africa (EZA, +2.49%) and China (MCHI, +2.11%).
Sectors: All U.S. sectors posted positive returns on Wednesday with Energy (XLE, +1.90%) and Industrials (XLI, +1.88%) outperforming. Technology (XLK), Consumer Discretionary (XLY), and Financials (XLF) were all up more than 1.50% while Utilities (XLU), Health Care (XLV), and Communication Services (XLC) all climbed more than 1.30%. Materials (XLB, +87 bps) was the only sector not to gain more than 1%. All industries also finished higher with Metals & Mining (XME), Oil & Gas Exploration & Production (XOP), Semiconductors (XSD), Biotech (XBI), and Retail (XRT) all rising more than 2%.
Themes: Excellent day for gloabl themes as all thematic segments finished in the green yesterday. eSports & Video Games (ESPO) and Biotech (SBIO) were the best performing segments adding 2.34% and 2.33%, respectively. Evolving Consumer (SOCL), Genomics (ARKG), and Solar (TAN) followed, all increasing more than 2%. Cybersecurity (HACK) lagged, adding just 7 bps. Only three segments are currently trading above relative 50-day and 200-day moving averages: Digital Infrastructure (GRID), Solar (TAN), and Water (PHO). The top performing thematic ETF on the day was the KraneShares CSI China Internet ETF (KWEB, +3.84%).
Commodities & Yields: At Wednesday's closing bell, the U.S. 2-Year Treasury Yield stood at 4.231% and the U.S. 10-Year Treasury Yield stood at 3.671%. The U.S. Dollar (UUP) added 25 bps, U.S. Aggregate Bonds (AGG) 28 bps, and TIPS Bonds (TIP) increased 54 bps. Broad Commodities (DJP) finished higher by 1.32% on strength from Energy (DBE, +2.30%) and Agriculture (DBA, +1.11%).
Daily Note
12.21.2022
Equities: The Dow Jones Industrial Average (DIA, +31 bps) and the S&P 500 (SPY, +14 bps) were up slightly on Tuesday to snap respective 4-day losing streaks while the NASDAQ 100 (QQQ, -8 bps) finished lower for the 5th consecutive session. The U.S. 10-Year Treasury surged as it touched 3.70% intraday. In a surprise move, the Bank of Japan widened its cap on the 10-year Japanese government bond yield overnight on Tuesday, which shook investor sentiment. U.S. housing starts and permits also declined for the third consecutive month in November as permit applications for single family homes fell to the lowest level since May 2020. After market close, FedEx reported disappointing revenue results amid weakened demand and Nike reported earnings and revenue that topped expectations. Investors will also be looking towards November’s Personal Consumption & Expenditures (PCE) report on Friday. Most U.S. factor strategies posted gains yesterday led by S&P 500 Pure Growth (RPG, +52 bps). S&P 500 High Beta (SPHB, -10 bps) and S&P 500 Pure Value (RPV, -7 bps) lagged slightly. Emerging Markets (EEM) were relatively flat on the day despite losses from China (MCHI, -1.28%). Developed ex-U.S. Markets (EFA) added 40 bps as Japan (EWJ) and South Korea (EWY) were both up around 1.40%.
Sectors: Energy (XLE) climbed 1.51% yesterday and outpaced other U.S. sectors. XLE received a boost from Oil & Gas Equipment & Services (XES, +4.01%) and Oil & Gas Exploration & Production (XOP, +1.05%). Communication Services (XLC) and Materials (XLB) gained 68 bps and 66 bps, respectively, while Financials (XLF) added 42 bps. Just 4 sectors were lower: Consumer Discretionary (XLY, -1.16%), Real Estate (XLRE, -22 bps), Consumer Staples (XLP, -8 bps), and Health Care (XLV, -2 bps). XLY hit new 52-week lows and is now trading more than 15% below its 200-day moving average. Metals & Mining (XME) was also strong, climbing 2.63%.
Themes: Mixed session for global themes on Tuesday with Biotech (SBIO, +2.37%) outperforming other thematic segments. Cannabis (MJ) declined another 2.65% yesterday to new 52-week lows and entered oversold territory. Of the 11 Cannabis ETFs listed in the U.S., 9 currently sit at 52-week lows and 8 sit in oversold territory. Clean Energy (PBW), and Advanced Materials (REMX) both dropped more than 1%. Space (UFO) and Blockchain (BLOK) were both up more than 90 bps while Cyber Security (HACK), Genomics (ARKG), Digital Payments (IPAY), and Cloud Computing (SKYY) all rose more than 70 bps.
Commodities & Yields: U.S. Aggregate Bonds (AGG) sunk 68 bps, 20+ Year Treasury Bonds (TLT) dropped 1.78%, and the U.S. Dollar (UUP) declined 68 bps. At Tuesday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.264% and the U.S. 10-Year Treasury Yield stood at 3.684%. Broad Commodities (DJP) rose 45 bps with Precious Metals (DBP) jumping 2.51% and Industrial Metals (DBB) increasing 1.29%. Silver (SLV) surged 5.26%, Nickel (JJN) gained 3.48%, and Natural Gas (UNG) decreased 7.72%.
U.S. Factor Playbook
12.20.2022
An overview of the U.S. Factor ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
Daily Note
12.20.2022
Equities: The losing streak for U.S. markets was extended to four straight sessions on Monday as recession fears stemming from last week’s interest rate hike from the Federal Reserve lingered. The NASDAQ 100 (QQQ) fell 1.40%, the S&P 500 (SPY) dropped 85 bps, and the Dow Jones Industrial Average (DIA) declined 48 bps while treasury yields increased. Small-Caps were also weak with the Russell 2000 (IWM) sinking 1.35%. According to the December Housing Market Index results, homebuilder sentiment dropped for the 12th consecutive month to the lowest level since 2012. On Tuesday, investors will be monitoring the Housing Starts and Permits results followed by Existing Home Sales results on Wednesday and New Home Sales results on Friday. S&P 500 High Beta (SPHB) dipped 1.77% yesterday and was the worst performing U.S. factor strategy followed by S&P 500 Pure Value (RPV, -1.35%) and S&P 500 Pure Growth (RPG, -94 bps). All factors finished lower on the day. Emerging Markets (EEM) added 8 bps South Africa (EZA) rose 3.20% and Brazil (EWZ) gained 2.17%. Developed ex-U.S. Markets (EFA, -24 bps) fell on weakness from Hong Kong (EWH, -72 bps) and the Netherlands (EWN, -72 bps).
Sectors: All U.S. sectors posted losses on Monday with Communication Services (XLC) and Consumer Discretionary (XLY) declining 2.34% and 1.60%, respectively. XLY now sits at 52-week lows. Technology (XLK), Materials (XLB), and Real Estate (XLRE) were all down more than 1%. Energy (XLE) was the top performing sector on the day, declining just 1 bps. On the industry level, Internet (XWEB, -3.19%) and Software & Services (XSW, -2.37%) dragged XLK lower. Regional Banking (KRE, +52 bps), Banks (KBE, +29 bps), and Oil & Gas Equipment & Services (XES, +4 bps) were the only industries to finish higher on Monday.
Themes: All global thematic segments saw negative returns yesterday with most falling more than 1.50%. After snapping its 9-day losing streak on Friday, Cannabis (MJ) plummeted 6.80% and was the worst performing segment. MJ is down more than 20% over the past month and currently sits at 52-week lows. Clean Energy (PBW) dropped 4.42% and Genomics (ARKG) declined 4.38% while Biotech (SBIO), Multi-Theme (ARKK), and Space (UFO) all fell more than 3%. 5 other thematic segments sit at 52-week lows: Clean Energy (PBW), Multi-Theme (ARKK), Blockchain (BLOK), Industrial Revolution (ARKQ), and FinTech (FINX).
Commodities & Yields: The U.S. Dollar (UUP) added 2 bps, U.S. Aggregate Bonds (AGG) dipped 61 bps, and 20+ Year Treasury Bonds (TLT) decreased 1.68%. At Monday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.262% and the U.S. 10-Year Treasury Yield stood at 3.594%. Broad Commodities (DJP) dropped 1.10% as Industrial Metals (DBB) sunk 59 bps and Precious Metals (DBP) declined 45 bps. Natural Gas (UNG) plunged 10.45%, Nickel (JJN) was down 5.44%, and Silver (SLV) dropped 1.17%.
U.S. Sector & Industry Playbook
12.19.2022
An overview of the U.S. Sector ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
U.S. Size & Style Playbook
12.19.2022
An overview of the broad U.S. Size & Style ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
Daily Note
12.19.2022
Equities: On Friday, U.S. markets dropped for the third straight session with the S&P 500 (SPY) falling 1.18%, the NASDAQ 100 (QQQ) declining 95 bps, and the Dow Jones Industrial Average (DIA) decreasing 93 bps. All three major averages posted losses for the week last week following the 50 bps interest rate increase by the Federal Reserve. Friday was a volatile session as there were $2.6 trillion worth of index options, the highest amount "relative to the size of the equity market in nearly two years" according to Goldman Sachs. SPY and QQQ are both trading below relative 50-day and 200-day moving averages. This week, investors will be looking towards key housing data before a shortened holiday week next week. All U.S. factor strategies saw negative returns on Friday as S&P 500 Pure Growth (RPG) and S&P 500 Dividend (SPYD) declined 1.57% and 1.40%, respectively. S&P 500 Quality (SPYQ, -74 bps) was the best performing factor on the day. All factors were also lower last week. Developed ex-U.S. Marekts (EFA, -88 bps) were pulled lower by the U.K. (EWU, -1.62%) and the Netherlands (EWN, -1.23%) on Friday while Emerging Markets (EEM) added 29 bps on strength from Indonesia (EIDO, +1.61%). Last week, EFA fell 1.84% and EEM sunk 1.58%.
Sectors: All U.S. sectors posted losses for the second straight day on Friday. Real Esate (XLRE) was hit the hardest, falling nearly 3%, while Consumer Discretionary (XLY), Utilities (XLU), Health Care (XLV), Technology (XLK), and Energy (XLE) were all down more than 1%. Communication Services (XLC) dipped just 2 bps. Only three industries were in th green on Friday: Aerospace & Defense (XAR, +2.14%), Biotech (XBI, +33 bps), and Metals & Mining (XME, +28 bps). XLE was the only sector to finish higher last week, rising 2.03%. XLY was the worst performing sector last week as it dropped nearly 4%. XLY sits 1.42% above 52-week lows and is currently trading well below its 50-day and 200-day moving averages.
Themes: Space (UFO) rocketed 5.96% on Friday and handily outpaced other thematic segments, most of which finished lower. After 10 straight daily declines, Cannabis (MJ) increased 1.68%. Genomics (ARKG, +90 bps), Biotech (SBIO, +73 bps), Evolving Consumer (SOCL, +41 bps), and Multi-Theme (ARKK, +12 bps) were the only other segments to post gains on Friday. Advanced Materials (REMX) and Solar (TAN) saw the worst returns on the day, both declining more than 2%. Blockchain (BLOK) dropped another 1.78% and is approaching oversold territory. Last week, Space (UFO) climbed 2.73% and Biotech (SBIO) added 1.56%. All other segments posted declines with Advanced Materials (REMX) dropped 8.23%.
Commodities & Yields: Broad Commodities (DJP) sunk 1.00% on Friday as Energy (DBE) fell 2.27% and Industrial Metals (DBB) dipped 1.40%. Natural Gas (UGA) declined 3.92%, WTI Crude Oil (USO) was down 1.89%, and Tin (JJT) dropped 2.88%. The U.S. Dollar (UUP) rose 18 bps, U.S. Aggregate Bonds (AGG) declined 26 bps, and 20+ Year Treasury Bonds (TLT) decreased 1.12%. At Friday's closing bell, the U.S. 2-Year Treasury Yield stood at 4.191% and the U.S. 10-Year Treasury Yield stood at 3.488%.
Daily Note
12.16.2022
Equities: U.S. markets dropped sharply on Thursday following the 50 bps interest rate increase by the Federal Reserve on Wednesday. All three major averages posted losses for the 2nd straight session with the NASDAQ 100 (QQQ) declining 3.36%, the S&P 500 (SPY) falling 2.45%, and the Dow Jones Industrial Average (DIA) decreasing 2.18%. Year-to-date, just 27 names (or 18.24% weight) for QQQ are in positive territory while 174 names (or 34.41% weight) for SPY have posted positive returns. DIA is still trading above its 50-day and 200-day moving averages while QQQ is trading below its 50-day moving and 200-day moving averages. Small-caps were also weak yesterday with the Russell 2000 (IWM) sinking 2.50% while treasury yields were relatively flat. Markets also faced headwinds from disappointing Retail Sales results in November (-0.6% month-over-month vs -0.3% analyst expectations). Growth-heavy pockets of the markets underperformed with S&P 500 High Beta (SPHB, -3.22%) and S&P 500 Growth (SPYG, -3.10%) lagging other U.S. factors strategies. All factors dropped more than 1.40%. Developed ex-U.S. Markets (EFA) declined 2.55% as South Korea (EWY) plunged 4.33% and Germany (EWG) dropped 3.19%. Emerging Markets (EEM, -2.28%) were pulled lower by South Africa (EZA, -4.87%) and Taiwan (EWT, -2.37%).
Sectors: All U.S. sectors sunk on Thursday with Communication Services (XLC, -3.90%), Technology (XLK, -3.74%), and Materials (XLB, -3.05%) falling the furthest. XLC was dragged lower by Netflix (6.07% weight in XLC) which closed down nearly 9% after reports that the company was offering to return money to advertisers after missing viewership targets. XLC is now trading within 6% of 52-week lows. Industrials (XLI) declined 2.42% while Financials (XLF), Health Care (XLV), Consumer Staples (XLP), and Consumer Discretionary (XLY) all dipped more than 1.50%. Oil & Gas Exploration & Production (XOP, +42 bps) was the only industry in the green while Internet (XWEB), Semiconductors (XSD), and Metals & Mining (XME) were all down around 4%.
Themes: Brutal day for global themes as all thematic segments finished in negative territory and most segments dropped more than 3%. The worst performing segments on the day were 3D Printing (PRNT) and Fintech (FINX), which declined 5.26% and 5.03%, respectively. Advanced Materials (REMX, -4.95%), Evolving Consumer (SOCL, -4.94%) and Multi-Theme (ARKK, -4.90%) also underperformed. Two Cannabis ETFs now sit in oversold territory: the AdvisorShares Pure US Cannabis ETF (MSOS) and the AdvisorShares Pure Cannabis ETF (YOLO). Over the past month, MSOS has plummeted 32.67% and YOLO has fallen 22.29%.
Commodities & Yields: The U.S. Dollar (UUP) rose 93 bps, U.S. Aggregate Bonds (AGG) increased 15 bps, and 20+ Year Treasury Bonds (TLT) gained 20 bps. At Thursday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.236% and the U.S. 10-Year Treasury Yield stood at 3.450%. Broad Commodities (DJP) dropped 88 bps with all broad-based sectors finishing lower. Industrial Metals (DBB) declined another 2.44%, Precious Metals (DBP) sunk 2.07%, and Energy (DBE) decreased 1.27%. Gold (GLD) fell 1.64%, Natural Gas (UNG) jumped 7.64%, and WTI Crude Oil (USO) declined 1.80%.
Daily Note
12.15.2022
Equities: After 4 consecutive 75 bps rate increases, the Federal Reserve announced a 50 bps interest rate hike yesterday to a targeted range of 4.25% and 4.5%, the highest level in 15 years. U.S. markets were volatile intraday and posted declines on Wednesday following the announcement with the NASDAQ 100 (QQQ) falling 74 bps, the S&P 500 (SPY) dropping 64 bps, and the Dow Jones Industrial Average (DIA) sinking 47 bps. Treasury yields surged after the Fed decision but ended the day relatively flat. Fed officials also indicated that they expect higher rates next year with no rate declines until 2024 and that the expected terminal rate is up to 5.1% from 4.6% in September. Fed Chairman Jerome Powell stated that despite a welcome reduction in the monthly pace of price increases that, “it will take substantially more evidence to have confidence that inflation is on a sustained downward” path. The next Federal Reserve meeting and rate decision is scheduled for February 1, 2023. All U.S. factor strategies were lower yesterday with S&P 500 (SPHB, -88 bps) and S&P 500 Dividend (SPYG, -75 bps) underperforming. Emerging Markets (EEM) added 5 bps as China (MCHI) gained 69 bps and Mexico (EWW) decreased 73 bps. Developed ex-U.S. Markets (EFA) declined just 9 bps as European markets were mixed. Retail Sales results, the Philadelphia Fed Manufacturing Index results, and the Fed Balance sheet will be released on Thursday followed by quadruple witching and PMI Composite Flash results on Friday.
Sectors: All U.S. sectors were in the red on Wednesday except for Health Care (XLV), which increased 16 bps. XLV now sits within 2% of new 52-week highs and has climbed more than 5% in the last month. Communication Services (XLC, -1.30%), Financials (XLF, -1.25%), and Materials (XLB, -1.07%) were the worst performers. Real Estate (XLRE) and Technology (XLK) fell more than 80 bps while Consumer Discretionary (XLY) and Energy (XLE) dropped more than 60 bps. XLY is currently trading 5.07% above 52-week lows. Regional Banks (KRE, -1.85%) and Banks (KBE, -1.65%) were weak again, dragging XLF lower. Biotech (XBI) was the top performing industry, adding 33 bps.
Themes: Solar (TAN) outshined other global thematic segments yesterday, rising 1.95%. No other segments gained more than 1% with Wind (FAN, +67 bps) and Clean Energy (PBW, +55 bps) following Solar (TAN). FAN is approaching overbought territory. The rout on Cannabis (MJ) continued as it declined another 2.57%. Wednesday marks the 8th consecutive daily declines for MJ and it is down more than 15% over the past month. Casinos & Gaming (BETZ) dropped 1.64% while Advanced Materials (REMX) and Digital Infrastructure (SRVR) were both down around 1.30%. Connectivity (FIVG), Industrial Revolution (ARKQ), Disruptive Tech (ARKW), and Multi-Theme (ARKK) all sunk more than 1%.
Commodities & Yields: The U.S. Dollar (UUP) declined 46 bps, U.S. Aggregate Bonds (AGG) rose 22 bps, and 20+ Year Treasury Bonds (TLT) increased 43 bps. At Wednesday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.226% and the U.S. 10-Year Treasury Yield stood at 3.479%. Broad Commodities (DJP) finished down 26 bps as Industrial Metals (DBB) dropped 58 bps. Natural Gas (UNG) plunged 8.46%, Gasoline (UGA) jumped 3.87%, and WTI Crude Oil (USO) was up 2.28%.
Daily Note
12.14.2022
Equities: U.S. markets registered the second straight session of gains on Tuesday after encouraging Consumer Price Index (CPI) results which showed that prices had increased just 0.1% month-over-month and 7.1% year-over-year in November. The results were another indication that inflation may be cooling, lifting investor sentiment. The NASDAQ 100 (QQQ) climbed 1.08%, the S&P 500 (SPY) gained 76 bps, and the Dow Jones Industrial Average (DIA) was up 35 bps. Treasury yields fell sharply early in the session before rising slightly off intraday lows. Ahead of Wednesday’s Federal Reserve meeting and rate decision, there is a 79.4% chance of a 50-bps interest rate increase and a 20.6% chance of a 75-bps interest rate hike, according to the CME FedWatch Tool. Investors will also be monitoring the quadruple witching on Friday when single stock options, stock index options, single stock futures, and stock index futures all expire. All U.S. factor strategies posted gains for the second consecutive day led by growth-oriented pockets of the markets. S&P 500 Pure Growth (RPG) added 2.01% and S&P 500 Pure Beta (SPHB) rose 1.43%. Emerging Markets (EEM) increased 71 bps on gains from South Africa (EZA, +2.05%). Notably, the iShares MSCI Taiwan ETF (EWT) went ex yesterday on a $5.19 long-term capital gain on top of a $2.37 per-share dividend. Developed ex-U.S. Markets (EFA) gained 1.41% as Hong Kong (EWH), the Netherlands (EWN), and Germany (EWG) were all up over 1.50%.
Sectors: Consumer Staples (XLP) dipped 14 bps and was the only U.S. sector to finish lower on Tuesday. Real Estate (XLRE) outpaced other sectors, climbing 2.20%. Energy (XLE) and Communication Services (XLC) rose 1.90% and 1.69%, respectively, while Materials (XLB) and Technology (XLK) both increased more than 1%. Consumer Discretionary (XLY) was flat on the day. XLE and XLY are the only sectors trading below relative 50-day moving averages. At the industry level, Oil & Gas Equipment & Services (XES, +3.81%) outperformed while Regional Banks (KRE, -1.63%) and Banks (KBE, -1.16%) lagged. Year-to-date, XES is up 52.75% while KRE and KBE are both down more than 14%.
Themes: Most global thematic segments were in the green yesterday. Evolving Consumer (SOCL) was the top performing segment, rising 2.70%. Digitial Infrastructure (SRVR), 3D Printing (PRNT), Solar (TAN), and Casinos & Gaming (BETZ) all rose more than 2%. Cannabis (MJ) was weak once again, dropping 1.17%. The ARK Innovation ETF (ARKK) was up more than 8% early in Tuesday’s trading session before finishing down 6 bps. ARKK has plunged 62.69% thus far in 2022 but has gathered $1.4 billion in net inflows.
Commodities & Yields: At Tuesday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.241% and the U.S. 10-Year Treasury Yield stood at 3.518%. U.S. Aggregate Bonds (AGG) increased 67 bps, 20+ Year Treasury Bonds (TLT) rose 97 bps, and the U.S. Dollar (UUP) declined 88 bps. Broad Commodities (DJP) surged 2.23% with all broad-based sectors higher. Energy (DBE) jumped 2.42%, Precious Metals (DBP) gained 1.60%, and Industrial Metals (DBB) climbed 1.13%.
Global Thematic Playbook
12.14.2022
An overview of the Global Thematic ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
U.S. Factor Playbook
12.13.2022
An overview of the U.S. Factor ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
Daily Note
12.13.2022
Equities: Following last week's declines, U.S. markets posted solid returns on Monday with all three major averages rising more than 1%. The Dow Jones Industrial Average (DIA) increased 1.57%, the S&P 500 (SPY) added 1.44%, and the NASDAQ 100 (QQQ) climbed 1.26%. Small-Caps (IJR) and Mid-Caps (IJH) also gained 1.08% and 1.04%, respectively, while treasury yields increased. Investors will get a clearer picture on inflation in the U.S. tomorrow from the Consumer Price Index (CPI) results for November. The Federal Reserve will also likely hike interest rates by 50 bps on Wednesday. All U.S. factor strategies saw positive returns yesterday with S&P 500 Pure Value (RPV, +1.66%), S&P 500 High Beta (SPHB, +1.65%), and S&P 500 Momentum (SPMO, +1.64%) outperforming. Emerging Markets (EEM) declined 31 bps on weakness from Brazil (EWZ, -2.74%) and China (MCHI, -86 bps). Developed ex-U.S. Markets (EFA) rose 30 bps as the Netherlands (EWN) added 75 bps and France (EWQ) rose 54 bps.
Sectors: All U.S. sectors finished in the green on Monday led by Energy (XLE, +2.62%), Utilities (XLU, +2.29%), and Technology (XLK, +2.19%). Industrials (XLI), Financials (XLF), Health Care (XLV), and Consumer Staples (XLP) all gained more than 1%. All industries also finished higher with Oil & Gas Equipment & Services (XES) jumping 4.00% and Oil & Gas Exploration & Production (XOP) climbing 3.79%. XLV, XLI, XLU, and Consumer Staples (XLP) are all trading within 7.50% of relative 52-week highs. XLU is also approaching overbought territory.
Themes: Mixed session for global themes yesterday with Cloud Computing (SKYY, +2.85%) and 3D Printing (PRNT, +2.16%) leading the charge. Just 4 thematic segments finsihed lower: Cannabis (MJ, -97 bps), Advanced Materials (REMX, -87 bps), Evolving Consumer (SOCL, -22 bps), and Big Data (AIQ). Cannabis (MJ) is trading 23.10% below its 200-day moving average and just 40% of its holdings are trading above relative 50-day moving averages. Biotech (SBIO) climbed 2.00% while Multi-Theme (ARKK), Cyber Security (HACK), Disruptive Tech (ARKW), Digital Payments (IPAY), and Genomics (ARKG) were all up more than 1.50%.
Commodities & Yields: Broad Commodities (DJP) rose 1.11% as Energy (DBE) surged 2.29%. The U.S. Dollar (UUP) was up 7 bps, U.S. Aggregate Bonds (AGG) inched higher by 2 bps, and 20+ Year Treasury Bonds (TLT) increased 32 bps. At Monday’s closing bell, the U.S. 2-Year Treasury Yield stood at 4.388% and the U.S. 10-Year Treasury Yield stood at 3.613%.
U.S. Size & Style Playbook
12.12.2022
An overview of the broad U.S. Size & Style ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.
U.S. Sector & Industry Playbook
12.12.2022
An overview of the U.S. Sector ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.