How to Capitalize on the World Cup (5 Top ETFs to Buy)
What’s in Today’s Report:
- How to Capitalize on the World Cup – 5 Top ETFs to Buy
- CPI Takeaways – Inflation Rises, But Core Up Less Than Feared
Futures are higher with tech/semis leading as the U.S. called an end to the latest wave of military strikes against Iran which is offsetting a negative reaction to ORCL earnings (shares down ~8%) due to lofty cap-ex plans.
There were no noteworthy economic reports overnight leaving traders focused on the ECB meeting announcement (8:15 a.m. ET) with President Lagarde’s press conference to follow.
Beyond the ECB decision, traders will be eyeing today’s Jobless Claims release (E: 215K) as well as the second important U.S. inflation print of the week: PPI (E: 1.4% m/m, 6.0% y/y). An in-line claims print and as-expected, or cooler-than-feared PPI print should help stocks stabilize.
Heading into the afternoon, the Treasury will hold a 4-Week & 8-Week Bill auction at 11:30 a.m. ET and a 30-Yr Bond auction at 1:00 p.m. ET which will offer further insight to the bond markets view of inflation/Fed policy outlook as the Fed remains in their “blackout period” ahead of next week’s meeting (no Fed speakers today).
Finaly, there are a few noteworthy earnings releases to watch today including: ADBE ($4.74), LEN ($1.23), and RH (-$2.07), and as has been the case all season, the stronger the results, the better.
Sevens Report Alpha
Clients are hungry for income again, but the traditional playbook is becoming harder to execute. Bond yields remain attractive in some areas of the market, yet many investors still want higher levels of cash flow without taking on excessive duration risk or stretching for yield.
That has fueled interest in a new category of products built around autocallable notes, a strategy that has historically been reserved for high-net-worth investors and structured product desks.
In this week’s Alpha Report, we break down how autocallable ETFs work, why they are gaining trac-tion, the risks investors need to understand, and where they may fit within a diversified portfolio.
If clients are asking for more in-come and you want to stay ahead of one of the fastest-growing areas of the ETF market, this is a report worth reading.