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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

4 ETFs Gain From Commodities Upheaval

Stocks in this article: XRT PBJ PEJ IYT BAL

During the opening months of 2011, the dining industry faced steep hurdles as crop prices powered along a uphill trajectory and eventually revisited the breathtaking levels seen during 2008. In recent weeks, however, the full-steam-ahead action that defined the food industry in the first quarter has subsided as individual pockets of the agriculture spectrum have begun to break away from one another.

Choppy action from agricultural commodities will help relieve some of the pressure weighing on dining establishments underlying PEJ. The leisure industry-tracking PEJ will likely also get a lift as input costs slide. The fund sets aside a substantial portion of its portfolio to restaurants including Starbucks (SBUX), McDonald's (MCD), Yum! Brands (YUM) and Krispy Kreme Doughnuts (KKD).

iShares Dow Jones Transportation Average Index Fund (IYT)

The transportation industry should be watched closely as commodities remain shaky. Although the sector as a whole has already held up well throughout the market's multi-week rough patch, the prospects for many top players will likely improve further as fuel prices head south.

Last week, for instance, in comments made to Reuters following the company's strong quarterly earnings report, FedEx (FDX) CEO Fred Smith cited falling crude prices as a major advantage for the company as it heads into the second half of the year.

As earnings season ramps up in the weeks ahead, other members of the transportation industry like CSX (CSX) will step up the plate and report their respective quarterly numbers and outlooks for the second half of the year. If FedEx's performance is any indication for what is in store for this industry, I expect transports to be a standout performer in the months to come.

Written by Don Dion in Williamstown, Mass.

RELATED ARTICLES:


At the time of publication, Dion Money Management owned PBJ.
2 of 2

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!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

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