New Month, New ETFs: November's Watchlist Includes Media, Gold And Emerging Market
Last week the market rallied back near its prior high. This sets up a potential tug of war for the bulls and bears heading into the final two months of the year. Buyers will have to prove that they are firmly in control by notching a new breakout to all-time highs or risk giving back these hard fought gains.
The week ahead features the release of monthly employment data along with motor vehicle sales. In addition, several high-profile media conglomerates such as Walt Disney Co (NYSE: DIS) and Time Warner Inc (NYSE: TWX) are set to report earnings.
Here are the key ETFs to watch for the week of Monday, November 3:
PowerShares Dynamic Media Portfol. (ETF) (NYSE: PBS)
Media companies have been on a strong rebound to finish October and will face a key test in the week ahead as Disney, Time Warner and DirecTV are set to release earnings results. These companies represent top holdings in PBS, which carries a diversified portfolio of 30 traditional and online media stocks.
PBS is still down 6 percent in 2014, but has the potential to reverse those fortunes and build on recent gains if these stocks report better than expected profits.
SPDR Gold Trust (ETF) (NYSE: GLD)
Gold bullion was one of the most-talked about asset classes on Friday, when it slipped to new year-to-date lows. GLD tracks the daily spot-price of gold bullion and fell more than 4 percent last week amid higher than average volume.
The question on everyone’s mind, therefore, is whether or not GLD will arrest its current slide and find new support in the weeks ahead. One key factor will be the direction of the U.S. dollar index, which has been trading strongly in recent months. A lower dollar would likely play a role in supporting gold prices along with a pickup in global demand.
iShares MSCI Emerging Markets Indx (ETF) (NYSE: EEM)
Emerging markets were caught up in the global selloff in September and October, but have begun to turn higher in recent weeks.
Two of the most beaten down countries, Brazil and Russia, have started to show signs of strengthening, which may provide confidence in a broad-based, exchange-traded fund such as EEM.
Emerging markets have held up much better than their European counterparts, which make these developing countries a potential opportunity for a strong international rebound this year.
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