Here’s a hot corner of the global market you might want to look into — Europe (that’s right, Europe).
With inflows into the SPDR EURO STOXX 50 ETF (FEZ) topping $1.4 billion during the first eight months of 2013, it appears investors are reassessing the role of European blue chips amid signs of an economic recovery in the region. In fact, the Eurozone purchasing managers' index hit a 26-month high in August.
So what’s driving the trend? In large part, relief.
“There is something to be said for that,” says David Mazza (left), head of ETF investment strategy at State Street Global Advisors.
Of course, the fundamentals of European blue chips help, as those mainly in France and Germany that sell into other markets around the globe continue to gain traction. Mazza notes that many companies are not only undervalued when compared with where they’ve historically been, but also undervalued when compared with their counterparts in the United States.
Top 10 Gas Utility Stocks To Watch Right Now: International Business Machines Corporation(IBM)
International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.
Advisors' Opinion:- [By CNBC]
Mark Wilson/Getty ImagesFederal Reserve Chairman Ben Bernanke "Taper talk" could pretty much be dead until next year. Thanks to the dysfunction in Washington, many Fed watchers now see the first taper in the Federal Reserve's bond buying coming sometime later than expected -- certainly not before December but probably in the first quarter. Wall Street had been geared up for the start of a pullback from the easing program sometime this quarter, but a more sluggish economy and fiscal uncertainty make that less likely. "One thing we know for sure, as much as we know anything, is that short-term interest rates are going to stay low for as far as the eye can see," DoubleLine CEO and chief investment officer Jeff Grundlach said on "Squawk on the Street." "Quantitative easing is not even going away. It seems with this budget wrangling, it's going to keep going up." "It means the credit market is really a safer place than it's been for the last few months," he said. Since word of a compromise debt deal came Wednesday, bond yields have fallen and the dollar has tumbled, as traders worried the partisan battling would resume around the next set of deadlines for the budget in January and debt ceiling in February. The 10-year Treasury yield dipped to 2.6 percent from its Wednesday morning high of 2.76 percent, and the dollar index lost a full percent Thursday, trading at a nine-month low of 79.68. The S&P 500 Thursday, after trading lower early in the day, broke through to a new high in the afternoon in a burst of buying. The S&P 500 (^GSPC) closed up 11 at 1,733, topping its Sept. 19 high. The Dow (^DJI), however, finished down 2 at 15,371, dragged down by losses in IBM (IBM). "You don't have to worry about the government anymore. A couple of speed bumps are out of the way. There's no way they're going to taper this month and the odds of them tapering in December are low," said Dan Greenhaus, chief global strategist at BTIG. Greenhaus said the stock market als
- [By Alex Planes]
IBM (NYSE: IBM ) knew it had something big on its hands when it introduced the System/360 series of mainframe computers on April 7, 1964. Legendary IBM executive (and son of that other legendary IBM executive) Thomas J. Watson Jr. called the launch "the most important product announcement in the company's history." IBM hosted a launch event that would put today's to shame -- a coordinated nationwide reveal attended by more than 100,000 businessmen in 165 cities across the United States.
- [By Dan Caplinger]
The Dow Jones Industrials (DJINDICES: ^DJI ) had a strong week to finish the month of May, with the average emerging at an all-time record closing high on Friday. Gains in the Dow have been broad-based, with the vast majority of Dow component stocks rising for the week. But the Dow did leave a few lagging stocks behind, with Caterpillar (NYSE: CAT ) , IBM (NYSE: IBM ) , and ExxonMobil (NYSE: XOM ) among the stocks that posted declines on an otherwise positive day for the market.
Top 5 Blue Chip Companies To Watch For 2014: Apple Inc.(AAPL)
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.
Advisors' Opinion:- [By David Dittman]
The reaction to the announcement thus far has been rather muted from a Comcast shareholder�� perspective. The key of course is execution, integrating the Time Warner Cable footprint and existing subscribers, leveraging increased scale into better terms with content providers, advancing broadband offerings to meet the challenges represented by Netflix (NSDQ: NFLX) and Amazon (NSDQ: AMZN) as well as Apple Inc�� (NSDQ: AAPL) Apple TV offering.
- [By Paul Ausick]
Apps downloads for the month of February show that the Google Play store from Google Inc. (NASDAQ: GOOG) gained another point of market share in the two-company battle with the App Store from Apple Inc. (NASDAQ: AAPL). Google Play now claims 39% of the market between the two players, up from 38% in January and 35% in August 2013.
- [By John Maxfield]
Stocks are down sharply today thanks to worse-than-expected earnings from Bank of America (NYSE: BAC ) and fears that Apple's (NASDAQ: AAPL ) report may similarly disappoint. With roughly an hour left in the trading session, the Dow Jones Industrial Average (DJINDICES: ^DJI ) is lower by 167 points, or 1.13%.
- [By Rick Munarriz]
Is a $200 Windows 8 device even possible given Microsoft's (NASDAQ: MSFT ) steep licensing ransom when pitted against the freely available Android? What about Apple (NASDAQ: AAPL ) ? Margins have been contracting at the consumer tech titan, but is Apple ready for this kind of price war?
Top 5 Blue Chip Companies To Watch For 2014: Chevron Corporation(CVX)
Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.
Advisors' Opinion:- [By Claudia Assis]
Major oil and gas companies were lower, with shares of Exxon Mobil Corp. (XOM) �down 0.9%. Chevron Corp. (CVX) �shares retreated 0.4%, while shares of ConocoPhillips (COP) �were off 0.1%.
Top 5 Blue Chip Companies To Watch For 2014: Philip Morris International Inc(PM)
Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.
Advisors' Opinion:- [By Rich Smith]
The commonly accepted wisdom in the cigarette industry goes something like this: Smoking is in decline in the United States. Therefore, if you want to make money on tobacco, you must look abroad. You must buy Philip Morris International (NYSE: PM ) stock.
- [By Matthew Coffina]
Philip Morris International (PM)
Among our holdings, Philip Morris is arguably the most exposed to depreciating emerging market currencies, since it doesn�� have any US sales. Unfortunately, currency fluctuations are an unavoidable tradeoff for emerging markets��relatively stable cigarette volumes.
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