Transportation ETF Hit By UPS’s Lower Outlook
April 9th at 11:00am by Tom Lydon
The transportation exchange traded fund (ETF) is down 2.8% midday after UPS (UPS), a major component of the fund, announced a lowered outlook.
The world’s largest shipping carrier blamed a weak economy and the skyrocketing cost of fuel for needing to trim its first-quarter earnings forecast, reports Tim Paradis for the Associated Press. Shares of UPS are down 3.2% in midday trading.
The company is 7.4% of the iShares Dow Jones Transportation (IYT). Year-to-date, the fund is up 9.5%, and is still 4.9% above its 200-day moving average. Its other top holdings are Union Pacific (UNP, 13.1%), FedEx Corp. (FDX, 9.3%) and Burlington Northern Santa Fe Corp. (BNP, 9.2%).
The news only adds to concerns about the health of corporate earnings and the economy at large.
For full disclosure, some of Tom Lydon’s clients own shares of IYT.
