Earnings Surprises Fail to Sustain Rally (Daily ETF Wrap-Up)

Published Oct. 16, 2009 at 4:00 a.m.

Market Wrap-Up

Stocks took an early dive Friday and never broke the surface as disappointing corporate earnings took some of the steam out of the rally. Financial exchange-traded funds were hit and energy funds rose as crude prices closed above $78 a barrel.

Quarterly results from Dow components Bank of America (BAC), International Business Machines (IBM) and General Electric (GE) came in shy of analysts' estimates, offsetting Google's (GOOG) strong quarter.

The major indexes slipped in early trading and stayed on the negative side. The Dow Jones Industrial Average will have another opportunity to cross 10,000 next week after closing down 67 points at 9996. The Nasdaq fell 16 to 2157. The S&P 500 dipped 9 at 1088.

IBM and GE each beat the Street, and IBM lifted its outlook for the year. However, investors showed concern over IBM’s comments on corporate outlays and frowned on disappointing sales from GE.

Bank of America posted a disappointing loss after adding to its credit-loss reserves. The report sent the bank's shares 4.6% lower.

Consumer sentiment pulled back in early October, according to reports on Friday of the Reuters/University of Michigan index. The consumer sentiment index fell to 69.4 from 73.5 in September, a sharper-than-expected drop. The consensus forecast of Wall Street economists was for sentiment to slip to 72.0.

For a detailed rundown on Friday's trading session see our market story.

Winners

The United States Oil fund (USO) rose 7.0% as crude prices climbed throughout the week. Rising oil prices also pushed up shares of the Energy Select Sector SPDR fund (XLE) 4.3%.

Losers

The iShares Silver Trust fund (SLV) fell 2.2% for the week as the metal price fell. The iShares Dow Jones US Real Estate Index fund (IYR) dropped 2.1% on rising concerns about commercial real estate defaults.

This Week’s Industry News

Data Point
Private investment firm Guggenheim Partners took formal control of Claymore Partners on Friday, completing a merger announced in July...The acquisition covers all aspects of Claymore's operations, including Claymore Securities Inc., Claymore Investments Inc. in Canada and Claymore Advisors. Claymore creates as exchange-traded funds, closed end funds and unit investment trusts. Claymore's units are now indirect wholly owned subsidiaries of Guggenheim Partners. It was the 13th-largest U.S. ETF provider as of June 30. In Canada, the company has over $2 billion in ETF assets under management.

Launching Pad
Once it receives clearance from local regulators, iShares said it plans to offer the first exchange-traded fund for Chilean stocks, as well as new funds that track different Brazilian industry sectors. Daniel Gamba, Barclays Global Investors’ executive director for Latin America, told Bloomberg the company plans to launch more funds before the end of the year.

Claymore Securities plans to launch a China exchange-traded fund based on the AlphaShares China All Caps Index, which launched this week. Claymore plans to launch the Claymore/AlphaShares China All-Cap fund (YAO) later this month. The index will be limited to single stock exposure of no more than 5% and sector exposure of no more than 35%. It will measure the performance of all small-, mid- and large-cap investable publicly traded Chinese companies currently trading in New York and Hong Kong, but it will not include China A-Share or China B-Share offerings. AlphaShares has two other ETF offerings with Claymore: the Claymore/AlphaShares China Real Estate fund (TAO), and the Claymore/AlphaShares China Small Cap Index fund (HAO).

ProShares Trust has sought approval from the Securities and Exchange Commission for a pair of new Treasurys-linked, leverage exchange-traded funds. The ProShares Ultra 7-10 Year Treasury and the ProShares Ultra 20+ Year Treasury will seek to capture 200% of the daily performance of their underlying indexes. Total expense ratios for both funds were pegged at 0.95%.

Next Week’s Notebook

Earnings and Conference Calls

Monday
A. Schulman, Apple, Atheros Communications, Badger Meter, BB&T, Boston Scientific, Brown & Brown, Dockwise, Eaton, First Defiance Financial, Gannett, Great Atlantic & Pacific Tea, Hasbro, ICU Medical, Idex, JB Hunt Transportation, Lincare Holdings, McMoRan Exploration, Metals USA,...Packaging Corporation of America, PetMed Express, Renaissance Learning, S&T Bancorp, Steel Dynamics, Texas Instruments, Twin Disc, UDR, Volterra Semiconductor, Weatherford International, Whitney Holding, Zions Bancorp

Tuesday
Allegiant Travel, AmeriServ Financial, Amylin Pharmaceuticals, Applied Industrial Technologies, Arbitron, Astec Industries, Autoliv, Aware, Bank of New York Mellon, Banner, Biogen Idec, BlackRock, Brinker International, C.H. Robinson Worldwide, Canadian National Railway, Candela, Capital Bank, Capital City Bank Group, Carlisle Companies, Cascade Financial, Caterpillar, Cirrus Logic CNH Global, Coach, Coca-Cola, Comerica, Cree, Cymer, DiamondRock Hospitality, Drugstore.com, DuPont, Equity LifeStyle Properties, First Cash, First Security Group, Flexsteel Industries, Flushing Financial, Forest Laboratories, Fulton Financial, Gilead Sciences, Hancock Holding, Hawaiian Holdings, iGate, iGo, Illinois Tool Works, Imation, Infinera, Intuitive Surgical, Jefferies, Journal Communications, LaBranche & Co., Lexmark International, Lockheed Martin, M&T Bank, Manhattan Associates, Marten Transport, Mercantile Bank, Millicom International Cellular, Nabors Industries, Net Serviços de Comunicação, New Oriental Education & Technology Group, NuVasive, OptionsXpress Holdings, Parker Hannifin, Peabody Energy, Pentair, Peoples Bancorp, Pervasive Software, Pfizer, Pinnacle Financial Partners, Pixelworks, Polycom, Precision Castparts, Quest Diagnostics, Regions Financial, Renasant, SanDisk, Seagate Technology, Sherwin-Williams, SLM, Sonic, StanCorp Financial, State Street, Sterlite Technologies, ST Microelectronics, Stryker, Supertex, Supervalu, South Financial Group UAL, United Technologies, UnitedHealth Group, Vascular Solutions, Vocus, Walter Energy, Washington Trust Bancorp, Western Union, Yahoo, Zenith National Insurance, Zhone Technologies

Wednesday
A. T. Cross Company, Aaron's, Affymetrix, Air Products and Chemicals, AirTran Holdings, Allegheny Technologies, Alliance Data, Alliance Fiber Optic Products, Altria Group, AMB Property, Ambassadors Group, AmeriCredit, Ameriprise Financial, Amgen, AMR, Arkansas Best, Astoria Financial, ATMI, Boeing, C.R. Bard, Citrix Systems, ClickSoftware Technologies, Cohen & Steers, Cohu, Community Trust, Conceptus, Continental Airlines, Core Laboratories, CoStar Group, Covance, Covanta Holding, Cullen/Frost Bankers, CyberOptics, Dice Holdings, DST Systems, eBay, Edwards Lifesciences, Elan, Equinix, FBR Capital Markets, Fidelity National Financial, Fidelity National Information, First Midwest Bancorp, Freeport-McMoRan Copper & Gold, Gentex, Genzyme, Graco, Hub Group, Hudson City Bancorp, Intersil, iRobot, KeyCorp, Kinder Morgan Energy Partners, Kinetic Concepts, Knight Capital Group, Knight Transportation, Lam Research, LaSalle Hotel Properties Lennox International, Lindsay, Logitech International, Mattson Technology, MB Financial, Media General, Morgan Stanley, MSC Industrial Direct, Northern Trust, Northrop Grumman NVE, OSI Pharmaceuticals, P.F. Chang's China Bistro, Penn National Gaming, Platinum Underwriters Holdings, Range Resources, Rimage, Robert Half International, St. Jude Medical, Stanley Works, TCF Financial, Terex, Tractor Supply, TriQuint Semiconductor, TrueBlue, U.S. Bancorp, VMWare, Wells Fargo, Westell Technologies

Thursday
1-800-Flowers.com, 3M Company, Acacia Research, Akeena Solar, Alaska Air Group, Alexion Pharmaceuticals, Align Technology, Amazon.com, American Express, American River Bankshares, AmSurg, Associated Banc-Corp., AT&T, AU Optronics, Autobytel.com, Avid Technology, BancorpSouth, BJ's Restaurants. Black & Decker, Bottomline Technologies, Briggs & Stratton, Bristol-Myers Squibb, Broadcom, Bucyrus International, Builders FirstSource, Bunge Limited, Burlington Northern Santa Fe, Cabot Microelectronics, Capital One Financial, Cash America International, Celgene, Chartered Semiconductor Manufacturing, Check Point Software Technologies, Cheesecake Factory, Chipotle Mexican Grill, Chubb, Citizens Banking, City National ,CoBiz, Columbia Sportswear, Community Bank System, Computer Programs and Systems, Compuware, CONSOL Energy, Cooper Industries, Corus Entertainment, Credit Suisse Group, Cybersource, Danaher, Deckers Outdoor, Delta Air Lines, Deluxe, Developers Diversified Realty, Digirad, Dow Chemical, Eagle Materials, EMC, Emulex, Entergy, Federated Investors, Fifth Third Bancorp, First Commonwealth Financial, Freescale Semiconductor, Goodrich Corporation, Great Southern Bancorp, Greenhill & Co., Healthways, Hershey, Hittite Microwave, Hoku Scientific, Huntington Bancshares, Independent Bank, Informatica, Insteel Industries, Isilon Systems, ITT Educational Services, Janus Capital Group, JetBlue Airways, Juniper Networks, Kensey Nash, Kimberly-Clark,...Laboratory Corporation of America, Leggett & Platt, Lender Processing Services, Life Time Fitness, Marshall & Ilsley, MBT Financial, McDonald's, Merck & Co., Microtune, Monolithic Power Systems, Netflix, New York Times, NewMarket, Nucor, Occidental Petroleum, OceanFirst Financial, Old Dominion Freight Line, Old Republic International, Philip Morris International, Potash Corporation of Saskatchewan, Precision Drilling Trust, ProLogis, Provident Financial Services, Rambus, Reliance Steel & Aluminum, Reynolds American, RightNow Technologies, Riverbed Technology, Rocky Brands, ScanSource, SCBT Financial, Schering-Plough, Seattle Genetics, Select Comfort, Sonoco Products, Spartan Motors, Starwood Hotels & Resorts, Sterling Financial, SunPower, SunTrust, Superior Uniform, Synovus Financial, Teledyne Technologies, Temple-Inland, Terra Industries, Travelers, Union Pacific, US Airways, Valley National Bancorp, W.R. Grace & Co., WESCO International, Western Digital, Westwood Holdings Group, Xerox, Zimmer Holdings

Friday
Active Power, AMCOL International, AVX, Cache, Celestica, Columbus McKinnon, Delta Apparel, Dr. Reddy's Laboratories, EMC Insurance Group, Exelon, Honeywell, Horizon Lines, Idexx Laboratories, Ingersoll-Rand, Power Integrations, Sify, Timken, United Community Banks, Viad, Whirlpool, Wilmington Trust

Economic Data

Monday
1 p.m. NAHB Housing Market Index

Tuesday
7:45 a.m. ICSC-Goldman Store Sales
8:30 a.m. Housing Starts
8:30 a.m. Producer Price Index
8:55 a.m. Redbook

Wednesday
7:00 a.m. MBA Purchase Applications
10:30 a.m. EIA Petroleum Status Report
2:00 p.m. Beige Book

Thursday
8:30 a.m. Jobless Claims
10:00 a.m. FHFA House Price Index
10:00 a.m. Leading Indicators
10:30 a.m. EIA Natural Gas Report
4:30 p.m. Fed Balance Sheet
4:30 p.m. Money Supply

Friday
10:00 a.m. Existing Home Sales

Quick Take

A look at how the industry's most popular ETFs did on Friday.

10 Largest ETFs

Symbol	Net Assets	Price	52 Week High	52 Week Low	Volume
SPY	70,731	108.89	109.3	68.13	191,966,682
EFA	34,369	56.11	56.5	32.16	19,457,327
EEM	33,739	40.75	41.15	19.12	72,392,840
GLD	35,025	103.18	103.91	70.14	14,320,591
IVV	20,441	109.25	110.11	68.24	2,242,332
QQQQ	17,056	42.78	43.16	25.51	111,796,166
IWF	10,423	47.76	47.95	30.49	1,975,935
SHY	7,807	83.92	85	83.07	508,381
VTI	12,349	55.2	55.61	33.75	2,158,500
IWD	8,339	57.18	57.82	34.22	1,254,433

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