Tag Archives: nasdaq

SPY, DXJT: Big ETF Outflows

Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF, where 37,900,000 units were destroyed, or a 4.2% decrease week

Will These 3 Hot Chinese Techs Follow Alibaba Or JD With Earnings?

Alibaba rival JD.com ( JD ) was crumbling to a three-month low Monday after reporting light Q2 revenue guidance. Meanwhile, Alibaba ( BABA ) edged higher Monday intraday after jumping 4% last week on its earnings report, with the Chinese e-commerce giant now setting its sights on $1 trillion in gross merchandise volume in four years. Chinese stocks in general were getting hit hard in the stock market today amid a broad sell-off in Shanghai. JD shares were gapping down 9.7% in giant volume, hitting their lowest level since mid-February. The stock is now trading about 40% below its high reached last June. IBD Take: How to JD.com, Weibo and other Chinese Internet giants stack up? Find out at IBD Stock Checkup Alibaba is trading about 16% below its 52-week high. The stock was able to find support at its 50-day line ahead of its report and is now trading just under a 79.94 buy point within a larger pattern. Fellow Chinese tech stocks NetEase ( NTES ), Sina ( SINA ) and Weibo ( WB ) are all due to issue their quarterly reports after the close on Wednesday. Gaming company NetEase is expected to see earnings rise 56% in local currency, with revenue jumping 118%. NetEase is hitting resistance at its 50-day line. Shares are about 25% below their late December high, down about 1% in intraday trade. Internet portal Sina is expected to swing to a loss of 4 cents a share, while revenue edges up 2%. Shares are dropping back below buy range from a cup-with-handle base in intraday trade, losing 4.4%. The stock is about 20% below its June high. And social platform Weibo is projected to see earnings grow 300% to 4 cents a share, while revenue jumps 18%. Weibo was a part of Sina before its IPO in 2014. Sina remains a majority shareholder, while Alibaba owns a 30% stake. The stock was trading past the 20% profit-taking zone after breaking out of a cup-with-handle base a month ago. Shares are now extended about 13% from the buy point, dropping 5% Monday.

China Tech Stocks Fall As Shanghai Nears Lows On Growth, Debt Fears

U.S.-traded shares of China technology companies were mixed Monday after the Shanghai exchange had another big decline Monday, with one market technician warning that the index could re-test lows set in January-February. Ralph Acampora, analyst at Altaira Capital Partners, tweeted that the Shanghai exchange “is now expected to retest its January/February 2016 low at 2,638.” Baidu ( BIDU ) stock was down more than 3% in early trading in the stock market today . Baidu announced new measures amid a probe into sponsored advertising by health care outfits. JD.com ( JD ) stock was down nearly 10%, though the e-commerce company early Monday posted Q1 revenue that rose 47% from the year-earlier quarter. Qihoo 360 Technology ( QIHU ) stock was off 3%, shares in Sohu.com ( SOHU ) slipped 2%, while NetEase ( NTES ) stock edged down about 1%. NetEase reports earnings on Wednesday. Alibaba Group ‘s ( BABA ) stock rose fractionally Monday, while Sina ( SINA ) stock was down more than 4% and Ctrip.com International ( CTRP ) nearly 3%. The Shanghai exchange fell 2.8% on Monday to 2832.11, after sliding last week. IBD Take: YY among the China Internets falling; IBD Stock Checkup can help you assess. The People’s Daily, the government’s official newspaper, on Monday warned that China’s economic recovery might stall. The economic trend may be “L-shaped,” meaning flat growth, rather than a stronger “U-shaped” recovery, said the People’s Daily. Even so, the article said the government will not use excessive investment or rapid credit expansion to stimulate growth. One concern among China observers is the country’s widespread debt. Bank of America/Merrill Lynch, in a research report published Monday, referred to global investor George Soros’ remarks in April that China’s situation marks an “eerie resemblance” to the U.S. in 2005 to 2008, just before the financial crisis sparked the Great Recession. But BofA sees what it calls a better comparison, looking at Japan in the 1990s. “While there may be some parallels between the precrisis situation in the U.S. and China today, there arguably are even more important differences, including the nature of the increase in credit, extent of contagion risks to the broader economy, and scope for government policy to preclude or offset,” said the report. “Indeed, if we had to identify a historical antecedent for the current situation in China, a more applicable choice might be Japan during the 1990s. “That said, China’s unique situation belies any simple comparison with past crises in either developed or emerging markets, and warrants its own more in-depth investigation.” Another concern is increased scrutiny on the number of U.S.-listed China tech companies that plan to go private or delist in the U.S. in favor of China markets, where they have expected they could see higher valuations. China has said it is “reviewing market concerns about a record wave of businesses seeking higher mainland valuations with relistings there,” Bloomberg reported Sunday . Among companies with such plans, Momo ( MOMO ) stock was down 11% early Friday, while YY ( YY ) was down 9%.