This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Financial, Tech ETFs Get Earnings Boost

Michael Johnston is senior analyst for ETF Database.

Many analysts are building up the coming weeks as one of the most important earnings seasons in recent memory, a report card on the strength and sustainability of the economic recovery in the U.S. So far, the grades have been stellar.

Intel (INTC) revenue and profits declined from a year ago, but the chipmaker managed to beat Wall Street's expectations, indicating that the battered chip industry may be on the brink of a comeback.

In the financial sector, JPMorgan Chase (JPM) reported much better-than-expected results on the back of strength in its investment banking unit. Despite continued loan losses, JPMorgan saw "broad-based growth" in several of its businesses, according to chairman and CEO Jamie Dimon. The upbeat results gave hope to investors expecting most major financial institutions to post earnings declines

While Intel and JPMorgan represent only small portions of most technology and financial ETFs, their good news should send most sector-based funds higher on Wednesday, as the upside surprise from these firms is deemed not to be company-specific, but rather due to an improving economic environment and more favorable business climate.

JPMorgan's stellar results are good news for broad-based financials ETFs, including the iShares Dow Jones U.S. Financial Services Index Fund (IYG), Vanguard Financials (VFH) ETF, and Financial Select Sector SPDR Fund (XLF).

These funds are dominated by holdings in mega-banks like JPMorgan, Bank of America (BAC), Wells Fargo (WFC), Goldman Sachs (GS) and Citigroup (C), many of which are scheduled to issue earnings reports in coming weeks.

Intel's unexpected results have had a more wide-reaching impact. In addition to boosting U.S. technology funds such as Technology Select Sector SPDR (XLK) and the iShares Dow Jones U.S. Technology Sector Index Fund (IYW) ETF (as well as more targeted tech ETFs like the PowerShares Dynamic Semiconductors Portfolio (PSI), expectations for a recovering tech sector gave a boost to tech-heavy Asian economies, including Australia and South Korea.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,074.22 -5.35 -0.03%
S&P 500 2,000.22 +3.48 0.17%
NASDAQ 4,571.98 +14.2850 0.31%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs