ETF Outlook For Friday, February 14, 2014 (NIB, IYT, PBS, PDP)
ETF Outlook for Friday, February 14, 2014
iPath Dow Jones-UBS Cocoa ETN (NYSE: NIB)
It Valentines Day and chocolate will be food of choice for many today as boxes of the sweet goodies are handed out as presents. Investors may have paid a little more for that box of chocolates today as demand for cocoa around the world increases.
NIB, which tracks the futures price of cocoa is up 32 percent in the last 12 months and is trading near a multi-year high. What makes the move even more impressive is the fact that most other commodities have been in severe downtrends.
iShares Dow Jones Transportation Index ETF (NYSE: IYT)
The hits just keep on coming for the airlines and other transportation-related sectors as the inclement weather this winter continues. In the last week over 16,000 flights have been cancelled making it the worst situation since Hurricane Sandy.
An independent research firm puts the losses at $150 million in January alone for the airline industry. IYT, which is composed of airline stocks as well as truckers, railroads, and more has held up fairly well, but the next few weeks could be important for the next quarter.
PowerShares Dynamic Media ETF (NYSE: PBS)
The news Comcast (NASDAQ: CMCSA) making a higher bid for Time Warner Cable (NYSE: TWC) sent the entire cable industry higher yesterday, helping boost the media ETF. The top holdings of PBS include a couple cable companies as well as TV-related stocks.
The move by CMCSA could prompt more consolidation in the sector, which would lead to higher prices for several stocks in the ETF. The ETF closed back above its 50-day moving average for the first time in a couple weeks yesterday and is not looking bullish again.
PowerShares DWA Momentum Portfolio ETF (NYSE: PDP)
The ETF that is composed of 100 U.S.-listed stocks is one of the first to claw its way back to a new all-time high. The S&P 500 remains one percent below its historic high, but PDP charged to the best level ever yesterday. By investing in stocks that show strong relative strength the ETF will capture momentum and typically do well in bull markets.
However, during the recent sell-off the momentum stocks took a big hit and many have yet to rebound to the old highs. The ETF is most heavily invested in consumer discretionary and health care and the mix of stocks has been able to outperform.
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