For Immediate Release
Chicago, IL – November 09, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:(VXX - Free Report) –Free Report), SPDR Gold Trust ETF (NYSEARCA:(GLD - Free Report) –Free Report), iShares MSCI Mexico Capped ETF (NYSEARCA:(EWW - Free Report) –Free Report), iShares 20+ Year Treasury Bond ETF (NYSEARCA:(TLT - Free Report) –Free Report) and Health Care Select Sector SPDR Fund (NYSEARCA:(XLV - Free Report) –Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday’s Analyst Blog:
ETFs to Watch Today and After the Election
Finally, the day of the 2016 U.S. presidential election is here. Almost everyone is waiting for the final outcome with bated breath to decipher the future of the U.S. economy and the movement of the stock market.
After the FBI gave the clean signal of no criminal charges against Hillary Clinton on Monday, the stock market bounced back strongly snapping the nine-day losing streak – the longest in more than 35 years. In fact, the major indices logged in the best one-day gain of over 2% since March a day before the Election Day.
Though the race tightened over the last few weeks, the market is still betting on Clinton – the "status quo" candidate. On the other hand, Trump win could roil the financial stock markets with his proposed trade policy that could spark trade wars.
The uncertainty over the outcome has kept investors’ wary. This is especially true as the Dow Jones has fallen seven times while the S&P 500 has dropped six times since the 1952 election. However, Dow Jones and S&P 500 climbed the most on the Election Day in 2008, rising 3.28% and 4.08% respectively. In 2012, Dow Jones gained 1.07% and the S&P 500 added 0.79%. Moreover, the stock market has performed better during Democratic presidencies (read: 4 ETFs to Hedge Your Portfolio Before Presidential Election ).
Given this, investors should keep a close eye on the ETFs that are big movers today and follow the election:
iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:(VXX - Free Report) – Free Report)
The CBOE Volatility Index (VIX) is often known as the ‘fear index’ as it tends to outperform when investors are skittish about the market’s current direction. The gauge rose for nine consecutive days through Friday but fell on Monday. With this, VXX, the ETN tracking this benchmark, rose about 9% over the past 10 days. The ETN focuses on the S&P 500 VIX Short-Term Futures Index, which reflects implied volatility in the S&P 500 Index at various points along the volatility forward curve. It provides investors with exposure to a daily rolling long position in the first and second months VIX futures contracts.
SPDR Gold Trust ETF (NYSEARCA:(GLD - Free Report) – Free Report)
Gold will likely be the undisputed winner if Trump gains control of the White House as his policies could result in complete chaos in the economy and fiscal policy. On the other hand, Clinton’s victory could lower the appeal for the yellow metal with her more protectionist stance. As such, gold broke the $1300 per ounce last week on indications that Republican Donald Trump was gaining momentum but the price pulled back on Monday on renewed faith in Clinton. GLD, which tracks this bullion, added 1.3% over the past 10 days. The fund tracks the price of gold bullion measured in U.S. dollars and has a Zacks ETF Rank of 3 with a Medium risk outlook.
iShares MSCI Mexico Capped ETF (NYSEARCA:(EWW - Free Report) – Free Report)
Trump policies could prove to be a nightmare for the Mexican economy with less employment, less income, lower exports, and thus a weakening currency. He intends to renegotiate or terminate the North American Free Trade Agreement – the free trade deal between Canada, Mexico and America – and has pledged to crack down on immigration. As a result, Trump’s victory could hurt Mexico ETF. EWW offers diversified exposure to the Mexican stocks. It lost 0.5% over the past 10 days and has a Zacks ETF Rank of 3 with a Medium risk outlook (read: Mexico ETFs to Hinge on U.S. Presidential Election ).
iShares 20+ Year Treasury Bond ETF (NYSEARCA:(TLT - Free Report) – Free Report)
Americans will pile up the country’s debt with a flight-to-safety if Trump makes it to the White House, pushing the yields lower. In particular, the U.S. government bonds tracking the long end of the yield curve will be in vogue with the ultra-popular long-term Treasury ETF – TLT. The fund focuses on the top credit rating bonds with average maturity of 26.46 years and effective duration of 17.78 years. It shed 1.5% over the past 10 days and has a Zacks ETF Rank of 2 or ‘Buy’ rating with a High risk outlook.
Health Care Select Sector SPDR Fund (NYSEARCA:(XLV - Free Report) – Free Report )
The healthcare sector has garnered a lot of attention with varied policies and reforms on Obabamcare and drug pricing. While Clinton’s proposal of lowering the cost of prescription drugs and increased regulatory scrutiny are weighing heavily on the stocks, Trump’s repealing of Obamacare has also hit the sector. The ultra-popular healthcare ETF – XLV – was down about 2% over the past 10 days and has a Zacks ETF Rank of 1 or ‘Strong Buy’ with a Medium risk outlook (read: Healthcare ETFs in the Spotlight as Election Approaches ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
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