Market Overview

3 ETFs Being Driven By Russia, Time Warner And Oil

 3 ETFs Being Driven By Russia, Time Warner And Oil

ETF Outlook for Thursday July 17, 2014


The Dow Jones Industrial Average closed at the highest level ever yesterday and is now 138 points above the psychological level of 17,000. The index was led higher by a 9 percent gain in shares of semiconductor giant Intel (NASDAQ: INTC).

The all-time high celebration will be short lived, however. Stocks around the world are falling after more sanctions were placed on Russia over the Ukraine dispute.

PowerShares Dynamic Media ETF (NYSE: PBS)

The ETF was on the move yesterday after the portfolio’s top holding turned down a large takeover offer. Shares of Time Warner (NYSE: TWX) rose 17 percent to its best level in 12 years after Twenty-First Century Fox (NASDAQ: FOX) made an offer for the company. The deal would create a media giant, but TWX rejected the offer.

The rumors are that FOX will up their bid for the company and thus pushing up the price per share of TWX. This would be bullish for PBS, as TWX makes up nearly 6 percent of the portfolio.

Related Link: Johnson & Johnson, Goldman Sachs Pushing These ETFs Upward

Market Vectors Russia ETF (NYSE: RSX)

The increased sanctions against Russia by the U.S. and Europe have the shares of Russian stocks falling again over night. The Micex Stock Index is down nearly 3 percent, as investors fear another escalation in the battle with the Ukraine.

The ETF has had a great run the last four months, gaining more than 26 percent on its way to the best level since early January. The market may have gotten ahead of itself and today will see RSX open down big and could be the start of some profit-taking and panic selling.

United States Oil ETF (NYSE: USO)

Yesterday could have been the inflection point that turned a nearly month-long sell-off into a rebound. The ETF gapped higher and closed up 1.2 percent after closing at a two-month low on Tuesday. The ETF is set to open higher by more than one percent today, and the RSI is giving a crossover buy signal.

From a technical perspective the ETF is setting up for a rally to at least the low $38s. From that point it will take more fundamentals to push the price higher.


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