This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Dion's Weekly ETF Blog Wrap

Stocks in this article: FDX IYT XLI PEJ

NEW YORK ( TheStreet) -- Don Dion posts his current insights on the stock, bond, commodity and currency markets in his RealMoney blog, anticipating which ETFs will be in play next.

Here are three of his blog posts from the past week:


Transports Get Back on Track

Published 6/22/2011 10:23 a.m. EDT

It has been a tough few weeks for transports, but today's FedEx (FDX - Get Report) results could be an indication that the sector is changing course. After stumbling 2.6% in the one-month period ending June 21, the popular iShares Dow Jones Transports ETF (IYT) is getting back on track: Despite the recent pullback, IYT has gained more than 21.5% in 2011.

Earnings from FedEx give us some insight into why this sector is heating up. Despite high fuel costs, FedEx saw a 33% increase in earnings during its fiscal fourth quarter as the company implemented fuel surcharges for customers.

> >> Bull or Bear? Vote in Our Poll

FedEx isn't the only transport company trying to make lemonade out of the lemons of volatile fuel prices. Airlines, which are also represented in the IYT portfolio, have been increasing costs, fees, and surcharges.

Having weathered a broader market slide, transports could head even higher in the second half of 2011 and beyond. With fuel prices dropping, transport firms could see increased routes and higher volume. In its earnings announcement today FedEx Chairman Frederick W. Smith noted that "FedEx is well positioned to deliver strong earnings growth in fiscal 2012."

IYT is a highly liquid fund that offers ample exposure to big names in the transport industry. FedEx makes up a hefty 9% of holdings. Even though IYT is top-heavy, it is a liquid way to gain exposure to transport gains, as long as longer-term investors keep an eye on top holdings and overall asset exposure.

At the time of publication, Dion Money Management had no positions in stocks mentioned.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

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