Optimism Back in Wall Street? ETFs Areas to Win the Most
Zacks Investment Research | Apr 17, 2020 08:00AM ET
Wall Street looks optimistic again, thanks to Biotech Stocks, ETFs To Gain On COVID-19 Vaccine & Drug Progress ).
Plus, Abbott PFE too is engaged in the development and distribution of BioNTech SE’s BNTX COVID-19 vaccine candidate.
Though complete normalcy is not possible right now as reopening varies from state to state and also comes with certain conditions, investors look hopeful about market recovery. Stock futures surged on Apr 16. There are high chances some laggards will emerge as leaders in the near term.
Industrials
The sector has suffered massively.Per the Federal Reserve, ISM Manufacturing Purchasing Managers’ Index (PMI) came in at 49.1%, indicating a contraction.
With about 22 million Americans now unemployed, creation of blue-collar jobs would be of high priority. So, the industrial sector should be opened with appropriate social distancing norms in the coming days. Investors can expect some gains in Industrial Select Sector SPDR Fund XLI .
Retail
Retail — predominantly dependent on consumer discretionary activity — had a painful stretch in the peak of the pandemic due to store closures. Gradual reopening of businesses and job creations should favor this hard-hit sector and the fund VanEck Vectors Retail ETF (Coronavirus Ruins March Retail Sales: Top & Flop ETF Areas ).
Mid-Caps
The Fed’s massive loan programs toward small and mid-sized businesses as well as the reopening of the economy should bode well for smaller-sized stocks. Vanguard Mid-Cap Index Fund ETF Shares VO can be watched closely for some near-term gains.
Energy
The sector is in excruciating pain with oil prices slipping to almost a two-decade low. Oil is hovering at around $20, having started the year at $65. Per the International Energy Agency (IEA), oil demand might hit the lowest CRAK should see some respite in that case.
Dow Jones
This key U.S. index has lagged its two bigger counterparts amid the pandemic-led selloff. This leader may now record a better rebound as its key holding Boeing DIA could thus be kept an eye on for some gains.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.