Tag Archives: america

ETF To Ride On Batman Vs. Superman Movie Win

It’s Time Warner Inc. (NYSE: TWX ) that has emerged as the winner in the epic battle between Batman and Superman, the two DC Comics superheroes. As per Box Office Mojo reports, Batman v Superman: Dawn of Justice grossed over $170.1 million over the Easter weekend, far ahead of the other releases. Although the movie failed to get rave reviews from critics, the audiences paid no heed, making it one of the best March launches and the highest-grossing DC Comics movie over the launch weekend. It also claimed the spot of the sixth-largest domestic opening weekend. The movie has also been received well in the international markets, where it was released last week. It grossed over $254 million overseas, taking the total revenue to over $424.1 million so far. The movie’s performance was solid in the UK ($21.9 million), Mexico ($18.6 million), Brazil ($12.2 million), Korea ($10.5 million), Australia ($10 million) and Russia ($8.5 million), among other countries. Going by the current trend, the film could very well cross the $1 billion mark by the time it leaves the theaters. Following a string of failed releases or limited success with a few high-budget releases like Jupiter Ascending , the success of Batman v Superman… is a huge breather for Time Warner. The company is already preparing for a series of interconnected comic book franchises. These positive developments make it essential to look at the top-ranked PowerShares Dynamic Media Portfolio ETF (NYSEARCA: PBS ), with 5.04% exposure to Time Warner (see all Consumer Discretionary ETFs here ). PBS looks to provide exposure to the Dynamic Media Intellidex Index, holding a basket of 30 securities. Time Warner takes the second spot in the fund. The fund charges 59 basis points (bps) as fees. It has total assets of $86.9 million and trades in volumes of 58,000 shares. It has lost 5.2% so far this year (as of March 24, 2016). The fund has a Zacks ETF Rank #1 (Strong Buy). However, Time Warner may face competition later this year, as it is not the only media house pitting its superheroes against each other. Captain America and Iron Man and other Avengers from the Marvel world, a Walt Disney Company (NYSE: DIS ) subsidiary, are set to fight it out in the upcoming Captain America: Civil War . Meanwhile, PBS is secure in its position and is poised to gain further, with Disney standing at the 7th spot with little less than 5% weight. Original Post

Manufacturing Data Point To Recovery: ETFs, Stocks To Consider

The U.S. manufacturing sector saw a silver lining in February after a prolonged sluggishness. This was indicated by the recent manufacturing report from the Institute for Supply Management (ISM). As per ISM, PMI was 49.5 in February (a reading of 50 or higher points to growth), beating January’s reading by 1.3 percentage points. Though the latest reading has come in below 50 for the fifth successive month, ISM talked of overall recovery. The data showed an increase for the second month in a row in February. There was stepped-up production and new orders were seen at higher levels . So far a stronger greenback, huge capex cuts by energy companies to fight back the plunge in oil prices and soft demand in the wake of global growth worries were keeping a check on the sector. Inventory accumulations also put a lid on factory activity . Also, construction spending jumped to the highest level since 2007 in January. Plus, solid consumer spending, a healing labor market and improving industrial production point to the fact that the U.S. economic growth probably has legs, and that the recession fear is overblown. ISM noted that out of the 18 manufacturing sectors under coverage, nine witnessed growth in February. Needless to say, the upbeat data points once again sparked off Fed hike talks and pushed up the benchmark Treasury bond yields by 9 bps to 1.83% on March 1. While the report prompted a risk-on movement in the overall market, specific comers like industrial and construction companies need extra attention. While almost all industrial and construction ETFs in the space experienced a rise post-upbeat data, we highlight one from each category that gained the most. ETF Picks First Trust RBA American Industrial Renaissance ETF (NASDAQ: AIRR ) This fund provides exposure to the small- and mid-cap stocks in the industrial and community banking sectors by tracking the Richard Bernstein Advisors American Industrial Renaissance Index. The portfolio results in a basket of 39 securities, which are widely spread out across components with none holding more than 4.80% of assets (read: Invest in America with These 4 ETFs ). The fund is often overlooked by investors as depicted by its AUM of $30 million and average daily volume of about 19,000 shares. The Zacks Rank #3 (Hold) fund with a High risk outlook charges 70 bps in fees per year and has lost 2.1% so far this year (as of March 1, 2016). However, AIRR was up over 2.4% on March 1, 2016. PowerShares Dynamic Build & Construction (NYSEARCA: PKB ) As far as construction companies are concerned, several homebuilding companies like ETRACS ISE Exclusively Homebuilders ETN (NYSEARCA: HOMX ), iShares U.S. Home Construction ETF (NYSEARCA: ITB ) and SPDR Homebuilders ETF (NYSEARCA: XHB ) returned better than PKB post-data release (read: Time to Buy Housing ETFs Despite Mixed D.R. Horton Earnings? ). But here we focus more on broad-based construction activities, rather than having a concentrated approach to housing companies. PKB has just 10% exposure in home builders, while engineering and construction companies take the top spot with about 23% of the fund. PKB seeks to track the performance of the Dynamic Building & Construction Intellidex Index. It holds a basket of 30 stocks and has an expense ratio of 0.63%. The product has amassed nearly $59.4 million in its asset base and trades in a light volume of around 18,000 million shares per day on average. The ETF has lost 4.2% in the year-to-date frame, but added 2.2% on March 1. It has a Zacks ETF Rank #2 with a High risk outlook. Stock Picks Many construction stocks will definitely enjoy price appreciation from recovering fundamentals. We highlight two stocks with a top Zacks Rank #1 (Strong Buy) and a Momentum Style Score of A or B (at the time of writing) that are expected to outperform their peers in the months ahead. Gibraltar Industries Inc. (NASDAQ: ROCK ) This New York-based company manufactures and distributes building products in North America, Europe, and Asia. The stock has a Growth score of ‘A’, Momentum score of ‘B’ and a Value score of ‘B’. The underlying sector of the stock is in the top 22% of the Zacks Industry Universe. ROCK is off 0.6% so far this year but added about 2.4% on March 1. AAON Inc. (NASDAQ: AAON ) This Oklahoma-based company manufactures and sells air-conditioning and heating equipment in the United States and Canada. The stock has a Growth score of ‘B’ and Momentum score of ‘A’. However, the stock does not score on value with an ‘F’. The underlying sector of the stock is in the top 5% of the Zacks Industry Universe. AAON is up 9.9% so far this year and advanced about 2.9% on March 1. Original Post

Random Ideas: Buy Global Defence And American Transport Shares

Two sectors deserving your investing scrutiny. Defence Has it struck you that whilst global economic and thus earnings growth is slowing, defence spending is accelerating? This is logical: “All politics are local”, as Tip O’Neill quipped years ago. Thus, politicians are rallying the masses against the “bad foreigner” who is to blame for the mess that politicians keep making at home by not structurally reforming their economies. Investment implication : keep buying shares (or a credible sector ETF), particularly in the defence sectors of America, Europe, Japan, South Korea and Australia (who want to increase defence spending by 80 per cent over the next decade). Transport Is economic growth really as terrible as all that? (Or are large investment banks merely using some flicks of bad news in order to drive profits by driving trading turnover, now that margins have collapsed?) Were economic growth so dire? Then why has America’s Dow Jones Transport Sector been gaining for the past six weeks? According to the Financial Times (FT) of 27th February, p. 15, ” The rebound for the closely watched sector, which includes 20 companies such as United Parcel Service (NYSE: UPS ), railway Norfolk Southern (NYSE: NSC ) and Delta Air Lines (NYSE: DAL ), is seen as a sign that the broader US equity market can gain further momentum.” All of this lends credibility to our long-held view that slowly, America’s Economic Time® is improving ; indeed, this is why the Fed has started raising rates, albeit gingerly. Investment implication : Buy cheap American transport stocks or an appropriate American transport sector ETF.