U.S. equities dipped into red territory for four out of five sessions last week as investors weighed positive economic data against the prospects of a Fed taper. In labor news, 215,000 private sector jobs were added last month, up from 130,000 in October and above the expected 178,000. The Commerce Department also reported initial jobless claims falling more than expected; in the most recent week, claims fell by 23,000 to a seasonally adjusted 298,000. The monthly labor report showed 203,000 jobs being added in November and the unemployment rate dropping to 7.0%.
This week, investors will once again see a slew of economic reports. Below, we outline three ETFs that should see a fair amount of activity during the week ahead [see The Fed Effect: How Monetary Policy Impacts Your ETFs].
1. China Large-Cap ETF (FXI, B+)
Why FXI Will Be In Focus: This fund measures the Chinese stock market with a large-cap spin, making it one of the more popular emerging market funds. Its place in the spotlight will come on Tuesday as the country’s industrial production is reported. Analysts expect industrial production to increase 10.2% year-over-year, versus the previously recorded 10.3% figure [see Single Country ETFs: Everything Investors Need To Know].
2. New Zealand Capped ETF (ENZL, A)
Why ENZL Will Be In Focus: This fund is designed to reflect the performance of the New Zealand equity market, making it the only exchange-traded product of its kind. ENZL’s focus will come on Wednesday when the Reserve Bank of New Zealand is expected to announce its rate decision. While the rate is expected to stay the same at 2.50%, investors should pay close attention to any commentary made by the central bank in its press conference.
3. SPDR S&P Retail ETF (XRT, A)
Why XRT Will Be In Focus: This ETF tracks an index that is comprised of the roughly 100 U.S.-listed, publicly-traded retail companies, a targeted sub-sector of the consumer discretionary space. Investors should keep a close eye on XRT on Thursday as monthly retail sales are reported. With a boost from Black Friday and Cyber Monday, analysts are expecting retail sales to increase 0.6% versus the previously recorded 0.4%. Core retail sales are expected to grow 0.2% [see also How To Pick The Right ETF Every Time].
Follow me on Twitter @DPylypczak.
Disclosure: No positions at time of writing.