ETF Outlook for Thursday, April 24, 2014 (XLK, SOCL, ITB, FXE, AAPL, FB)
ETF Outlook for Thursday, April 24, 2014
SPDR Technology ETF (NYSE: XLK)
The ETF’s largest holding, Apple (NASDAQ: AAPL), reported earnings last night after the bell that impressed investors and is sending the stock higher by seven percent Thursday morning.
The stock makes up 13.5 percent of the portfolio and not only will it lift the price of XLK, it will also help bring money back into the technology sector. In pre-market trading XLK is up about two percent.
Global X Social Media ETF (NYSE: SOCL)
Another popular technology company reported earnings after the bell on Wednesday, Facebook (NASDAQ: FB). The numbers were impressive and the stock is higher by five percent in early trading.
Another top five holding in the ETF, Zynga (NASDAQ: ZNGA), also reported solid earnings and the stock is up seven percent Thursday morning. The bullish news will help boost SOCL in early trading. It will be interesting to see if money continues to flow in to the sector due to lofty valuations.
iShares U.S. Home Construction ETF (NYSE: ITB)
The home construction stocks have been struggling the last two months after hitting the best level in nearly seven years. Yesterday the ETF closed at the lowest price for the year on the back of heavy volume.
The selling should turn around today after Pulte Group (NYSE: PHM) reported earnings the street is taking to kindly. Even though the company missed revenue and earnings estimates, the stock is higher on higher selling prices for their homes. The stock makes up 9.4 percent of the ETF portfolio and is the second largest position. Expect PHM to drive the price of ITB on Thursday.
Rydex CurrencyShares Euro ETF (NYSE: FXE)
The euro is falling this morning after the ECB announced it would be open to broad-based purchases if the outlook for inflation in the eurozone continues to weaken.
The central bank also came out and said it could make a move if the Euro continues to strengthen. Over the last 12 months the euro is up six percent and trading near the best level in over two years.
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