ETF Outlook for Tuesday, April 29, 2014
iShares U.S. Pharmaceutical ETF (NYSE:IHE)
The news regarding U.S.-based drug companies continues to be heavy as earnings hit the wires this morning along with more merger news. Bristol-Myers Squibb (NYSE:BMY) reported earnings above estimates, but revenue below what analysts were looking for. The stock is trading down on the news.
Pfizer (NYSE:PFE) is on the move higher Tuesday as it still attempts a takeover of AstraZeneca (NYSE:AZN). The combo of earnings and merger news will keep IHE in play all day as volatility increases.
Guggenheim Solar ETF (NYSE:TAN)
A downgrade of several China-based solar stocks by Credit Suisse put pressure on the sector and TAN closed the day down 4.4 percent. Even though the move to the downside was big, the ETF was able to rally from the intraday low before the bell rang.
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The solar stocks are up slightly this morning and could catch some buying from the overall market and investors looking to buy on the dip. The support level to watch is the $36.50 area.
SPDR S&P Retail ETF (NYSE:XRT)
Two retail sales numbers are released this morning. The ICSC Retail Sales number for the week came in with a gain of 1.6 percent week-over-week versus 0.4 percent last week. And the number was a more impressive 3.1 percent year-over-year versus 1.9 percent last week. Later this morning the Redbook Chain Store Sales number is also released.
XRT has been in a choppy pattern going back to August of last year. The trading action included a new all-time high in November and a multi-month low in February. With the ETF in the middle of the range the next move is difficult to decipher, however expect some movement today to the upside when the opening bell rings.
Global X Social Media ETF (NYSE:SOCL)
The ETF is officially well into bear market territory after a rough last four trading sessions. With a loss of 25.6 percent from the March high, the ETF is one of the worst performers in the market. SOCL closed down another 2.9 percent yesterday to the lowest level since July of last year. That being said, there could be some help on the horizon.
After the bell Tuesday,Twitter (NYSE:TWTR)will report quarterly earnings. The stock is down 44 percent from the December high and yesterday it came within 50 cents of its all-time low of $38.80. Even a decent number could push both the stock and ETF higher. Look for a rebound after investors panicked over the last few weeks.
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