Tag Archive | XLK

How to Play Rising Gasoline Prices

as published at  http://www.stockpickr.com/how-play-rising-gasoline-prices.html

NEW YORK (SmartStops) — President Obama made some commentsover the weekend that there is no “silver bullet” to help bring down gas prices. While this isn’t what most Americans want to hear, investors and traders can profit from rising gasoline prices to help hedge their daily expenses.

If you believe that Obama is right, here are a few ways to profit from rising gas prices, either by playing certain ETFs or specific equities.

In his weekly radio address, Obama said: “Now, whenever gas prices shoot up, like clockwork, you see politicians racing to the cameras, waving three-point plans for $2 gas. You see people trying to grab headlines or score a few points. The truth is, there’s no silver bullet that can bring down gas prices right away.”

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Four ETFs Driven By Apple and IBM’s Stellar Performance

Technology giants, Apple Inc. (AAPL) and International Business Machines (IBM) reported stellar quarterly earnings, smashing analyst expectations and shinning a ray of light on the technology sector and the exchange traded funds (ETFs) that track it.

Apple reported a fourth quarter increase in revenue to $26.7 billion, while boasting gross margins of 38.5 percent and net income of $6 billion, or $6.43 per share, beating Apple’s own forecasts of revenues of $23 billion and a gross margin of 36 percent.  Furthermore, these numbers crushed the $3.38 billion in net income that the Cupertino, California-based company boasted for the same period the previous year.  This jump in revenue was primarily driven by increased consumer spending and hence better than expected sales, which included 16.24 million iPhones, 7.33 million iPads, 4.13 million Macs and 19 million iPods.  Analysts were expecting sales in the realm of 15.5 million iPhones, 6.2 million iPads, 4.2 million Macs and 19 million iPods.  Read More…

Four ETFs To Play Microsoft’s Income Jump

Core products pushed revenues and net income up at Microsoft (MSFT) in the third quarter, further extending out the exceptional earnings season witnessed by the technology giants and giving further support to the Software HOLDERs ETF (SWH), the iShares Dow Jones US Technology (IYW) and the Technology Select Sector SPDR (XLK) and the Vanguard Information Technology ETF (VGT).

According to Microsoft’s Chief Financial Officer, demand for both Windows and Office products have thrived as businesses of all sizes increased technology purchases.  Furthermore, a new version of Microsoft’s flagship software, Windows 7, has sold more than 240 million licenses since its debut a year ago, making it the fastest selling operating system in the company’s history.   Another factor that aided in Microsoft’s performance was sales of Office 2010 which generated $5.13 billion in the quarter and, similar to Windows 7, sold 20 percent more units since the product’s launch that it did of the previous version of Office during the same time period.  Read More…

Three Tech ETFs To Be Boosted By Mobile Phones

The launch of new products, rapid growth smartphones and an increase in replacement sales enabled the mobile phone sector to post second quarter growth paving the path to opportunity for the Technology Select Sector SPDR (XLK), the iShares S&P Global Technology (IXN) and the PowerShares QQQ (QQQQ).

According to research firm IDC, manufacturers of mobile handsets shipped a more than 317 million units worldwide in the second quarter of 2010, marking an increase of 15% year-over-year.  One reason behind this demand is the increased appeal of smartphones.  The research firm further stated that sales of smartphones, which account for nearly 19.8% of all mobile device sales, grew nearly 50% year-over-year and is expected to continue to grow.  Drivers behind this exponential growth included an improved business environment, healthy operator subsidies, vigorous competition between vendors, and a growing tide of lower-cost models. Read More…

Changes In Consumer Spending Boost Appeal in Technology

Despite an uptick in personal savings rates and lackluster results on overall consumer spending, electronics are causing consumers to reopen their wallets, further boosting the appeal of the technology sector.

According to a report released by the Commerce Department, outlays of televisions, computers, video and telephone equipment grew by 1.8% in the first six months of 2010, compared to the first half of pre-recession 2007.  In comparison, during the same time periods, sales of appliances decreased by 3.6% and that of furniture declined by a whopping 11%, indicating that consumer trends are shifting.  The report also indicated that overall consumer spending remained flat in June from the previous month and U.S. personal savings as a percentage of disposable income rose 6.4% from a month earlier.  Read More…

Three Tech ETFs To Play Apple And Microsoft

After reporting stellar quarterly financials, Apple (AAPL) and Microsoft (MSFT) remain attractive and for good reason.

In the fiscal third quarter, innovation king Apple, boasted revenues of $15.7 billion, up more than 61% from a year ago, yielding profits of $3.51 per share.  These results smoked Wall Street’s revenue expectations by nearly $1 billion and painted a rosy picture for the second-largest U.S. listed stock by market cap. 

One reason Apple is likely to continue to shine is that demand for the iPhone 4 remains insatiable despite reports of reception problems.  Additionally, the Cupertino, California-based technology firm recently updated its all-in-one iMac desktop computer line with new chips from Intel (INTC) and better graphics, which is expected to further boost appeal of iMacs.  In the most recent quarter, Apple sold 1 million desktop Mac units, an increase of 18% from the prior year, generating nearly $1.3 billion in revenue.  Currently, it is estimated that Apple is the fourth largest computer vendor in the U.S. with nearly 8.8% of the market share, giving the company the opportunity to grab more market share. Read More…

Three ETFs To Cash In On Increased Tech Spending

As technology giants report strong earnings and robust sales guidance, exchange traded funds (ETFs) which track the sector are poised for growth and could pose an opportunity.

As the U.S. economy starts to stabilize, business are expected to upgrade software and hardware, which were one of the first things to be postponed during the Great Recession as cost cutting efforts took precedent.  According to market research giant, IDC, sales of hardware are expected to rise by 6.4% and sales of software and technology are expected to jump 3% this year, to upgrade servers, workstations, networking gear and storage systems. 

To further boost appeal, increases in global personal computer sales will help bolster revenues.  Shipments of PCs are expected to rise 22% this year as many buyers bypassed Windows Vista and demand in emerging markets, fueled by an increase in personal wealth, is ballooning.  Read More…

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