Exchange traded funds (ETFs) jumped before paring gains as the markets digested President Obama’s State of the Union address, economic reports and the latest round of corporate earnings.
- Sales of new single-family homes rose in December to an annual rate of 329,000 on a seasonally adjusted basis, the highest level since last April when a federal tax credit gave the market a temporary boost. About 85% of the new sales took place in the South and West. Nationwide sales in November, however, were revised down to 280,000 from an initial reading of 290,000. The Dow Jones U.S. Real Estate ETF (NYSEArca: IYR) is up slightly today.
- Yahoo Inc. (NASDAQ: YHOO) on Tuesday posted a gain in fourth-quarter profit while sales fell 4% compared with the same period a year earlier, reflecting the Internet giant’s renewed cost controls as well as increasingly heated competition in the online-advertising market. PowerShares NASDAQ Internet Portfolio (NASDAQ: PNQI) is up slightly this morning; Yahoo is 8% of the ETF.
- Aerospace giant Boeing Co. (NYSE: BA) stock is down almost 3.5% today after it posted an 8% decline in fourth-quarter net income and offered a 2011 profit forecast of $3.80 to $4 a share. Excluding items, the aircraft maker earned $1.11 a share. Analysts surveyed by Thomson Reuters had estimated $1.12 a share. Revenue declined 8% to $16.6 billion; analysts had estimated $17 billion. The PoweShares Aerospace and Defense ETF (NYSEArca: PPA) is flat on Wednesday; Boeing is the largest holding at 7.2%.
- ConocoPhillips (NYSE: COP) shares are up a 1.5% today after reporting fourth-quarter earnings of $2.0 billion, compared with fourth-quarter 2009 earnings of $1.3 billion. For 2010, the company had earnings of $11.4 billion, compared with earnings of $4.4 billion in 2009, said Jim Mulva, chairman and chief executive officer. The Direxion Daily Energy Bull 3X ETF (NYSEArca: ERX) is up 1.5% today.
Gregory A. Clay contributed to this article.
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