ETF Outlook for the Week of April 28, 2014
iShares MSCI South Korea (NYSE: EWY)
South Korean stocks could be on the move this week after the Prime Minister announced he would step down over the weekend. The resignation is in the wake of the terrible ferry tragedy that killed hundreds of students on April 16. The government response has been criticized and the PM has decided it is best to leave his post. Since the incident the ETF is down 2.4 percent and trading at a multi-week low.
iShares U.S. Insurance ETF (NYSE: IAK)
The ETF’s number one holding, American International Group (NYSE: AIG), had a positive write up in this weekend’s issue of Barron’s. The article highlights a book value of 0.76 and suggests it could double in the next five years. With the stock making up 12.5 percent of IAK, the positive news could push the ETF higher to kick off the week. The ETF needs a catalyst as it is trading at the same level as it was six months ago.
iShares Europe ETF (NYSE: IEV)
This week the monthly manufacturing surveys from around the world are released and there will be a focus on the European numbers. Stocks in Europe have held up much better than their U.S. counterparts recently and it will take solid numbers to keep the momentum going. IEV is trading 0.6 percent from the best level since 2008. The countries with the largest exposure in IEV to watch are the U.K., France, Switzerland, and Germany.
SPDR S&P 500 ETF (NYSE: SPY)
It is a huge week for the market with a laundry list of reports to be released. Monday kicks it off with the pending home sales, followed by the consumer confidence and Case-Shiller Home Price Index on Tuesday. Wednesday is a big day with the ADP employment number, the first quarter GDP, Chicago PMI, and the FOMC decision. Thursday has construction spending, ISM, vehicles sales, initial jobless claims, and personal income and spending. Then the granddaddy of them all, the monthly employment report, will be released Friday before the bell. Add in earnings season that still has big names reporting quarterly results and expect SPY and the world markets to be on the move and volatility to be above average.