Wall Street was in for some volatile trading sessions last week, as mixed economic data and lackluster earnings had stocks dipping in and out of red territory. While the Fed reiterated its rather grim outlook for the economy during its FOMC meeting, investors welcomed better-than-expected GDP data, which showed a slight uptick from July to September. In earnings news, bellwethers 3M (MMM) and DuPont (DD) reported earnings that fell bellow expectations, while Apple (APPL) posted a rare earnings miss. This week, investors will once again see a number of earnings and economic reports from around the world. Below, we outline three ETFs that should see a fair amount of activity during the week ahead [see also 7 Simple & Cheap ETF Model Portfolio]:
1. Dynamic Retail ETF (PMR)
Why PMR Will Be in Focus: This ETF tracks an index that is comprised of stocks of U.S. retail companies. And, as such, its performance is closely tied with U.S. consumer behavior. Its focus will come in earlier in the week, as U.S. personal consumption expenditure data and consumer confidence are slated to be reported on Monday and Tuesday, respectively. Analysts expect both of these figures to come in slightly higher than the previous record. Should these reports disappoint, PMR could see an uptick in activity [see also 17 ETFs For Day Traders].
2. MSCI Japan Index Fund (EWJ)
Why EWJ Will Be In Focus: This fund seeks to replicate the performance of the Japanese equity market and is home to over $4 billion in total assets. It will be important to keep a close eye on EWJ on Tuesday as the Bank of Japan is slated to announce its rate decision. While the bank rate is expected to say the same, speculations have been circulating concerning the central bank considering expanding its asset-purchasing program. If the Bank of Japan announces more aggressive stimulus measures, EWJ could be in for a volatile trading day.
3. Market Vectors Germany Small-Cap ETF (GERJ)
Why GERJ Will Be In Focus: This ETF offers exposure to the small capitalization sector of the German equities market, giving investors more of a “pure play” on the local economy. Investors should keep a close eye on GERJ this week as Germany’s unemployment data is reported on Wednesday. The country’s unemployment rate has held steady at 6.8% for the past three months, but analysts are expecting a slight uptick in the month for the month of October [see also How To Pick The Right ETF Every Time].
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Disclosure: No positions at time of writing.