Railway transporters don't expect a bottom-line bonanza either. Norfolk Southern (NSC) lowered its earnings outlook on weakness in coal transportation as well as general merchandise; NSC shares fell in after-hour trading as a result.
For all of the bullish enthusiasm surrounding multi-year highs for the SPDR Dow Jones Industrials Trust (DIA), transporters have failed to confirm the excitement. Corporations that move goods air, truck, rail or sea have been ratcheting down forecasts.
The technical picture for ETFs exposed to the sector is somewhat disturbing. Guggenheim Shipping ETF (SEA) as well as the more widely known iShares DJ Transportation Fund (IYT) both reside below longer-term 200-day trendlines.Majesco Entertainment (COOL), a software company in the videogaming realm, recently hit a 52-week low on worse-than-expected losses on its earnings report. More noteworthy, Adobe Systems (ADBE) has disappointed on revenue for three consecutive quarters. The corporation blamed less-than-anticipated sales numbers of foreign currency exchange rates. (Blame a strong yen or a weak euro?) One should make note of the fact that iShares North America Tech Software (IGV) has a 6% exposure to Adobe Systems. While that may not seem like a significant impact, Adobe's disappointing results may carry over to companies including Intuit (INTU) and/or Symantec (SYMC). If you own IGV at these levels, you might want to place a
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