ETFs are flat on Wednesday after a series of Wall Street gains, as investors digest comments from Federal Reserve Chairman Ben Bernanke.
- The London and Toronto stock exchanges announced a landmark merger on Wednesday to create one of the world’s biggest trading platforms that will dominate the raw materials and energy sectors. The company, which will span 20 trading markets and platforms across Europe and North America, will be well-placed to tap into the booming commodities sector at a time of rocketing prices for commodities like copper and crude oil. Good timing, too: commodities are on fire lately. Teucrium Corn (NYSEArca: CORN) is leading early this morning, up more than 3%.
- China and Hong Kong led Asian markets lower as investors got their first chance to react to China’s rate hike, which was announced late Tuesday for those markets. Stocks fell on worries that Beijing could tighten policy further in coming months. “The rate hike hit market sentiment, but is unlikely to spark heavy selling on stocks as such tightening moves have been expected for some time,” said Central China Securities analyst Zhang Gang, referring to the People’s Bank of China 0.25% rate hike that took one-year lending and deposit rates to 6.06% and 3%, respectively. The ProShares UltaShort FTSE China 25 ETF (NYSEArca: FXP) is up more than 4% today.
- Coca-Cola Co. (NYSE: KO) shares are up almost 3% this morning after reporting that its fourth-quarter net income more than tripled, helped by the acquisition of a bottler and sale of more drinks in North America. It was the third consecutive quarter of rising sales in the birthplace of the world’s largest drink maker. It had been relying on emerging markets such as China and India for growth as weakened consumer spending and increased interest in healthier drinks sapped soda demand in developed markets. iShares Dow Jones U.S. Consumer Goods (NYSEArca: IYK) is up just slightly this morning; Coca-Cola is nearly 10% of the fund.
- Shares of Walt Disney Co. (NYSE: DIS) rose almost 5% today after the company reported late Tuesday that stronger advertising revenue for television and buoyant home-video sales of “Toy Story 3” boosted its first-quarter profit. Improved advertising revenues at Walt Disney Co.’s television networks and the strong international video sales of “Toy Story 3” fueled a 54% surge in quarterly earnings, the company reported Tuesday, easily surpassing most analysts’ estimates. The PowerShares Dynamic Leisure & Entertainment (NYSEArca: PEJ) is up in early trading; Disney is 5.5% of the ETF.
Gregory A. Clay contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.