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: FDXIYTXLIPEJ

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) 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

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 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

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