Stocks and many exchange-traded funds (ETFs) lost ground for a third straight day as investors grew increasingly uneasy about a recent move away from riskier assets and into U.S. Treasuries.

As investors moved money out of stocks, they moved money into safer investments like Treasury bills, report Stephen Bernard and Tim Paradis for the Associated Press. The yield on the three-month T-bill today was 0.02%, after falling to a yield of 0.005% late Thursday. In fact, yields briefly turned negative Thursday as demand jumped for this safest of short-term investments. The SPDR Barclays Capital 1-3 Month T-Bill ETF (NYSE: BIL) has a year-to-date return of 0.22%, with a yield of 0.28%. (For more stories on Treasuries, see our treasury bonds category).

Disappointing results from Dell (NASDAQ: DELL), the world’s number-three PC brand, weighed on investor sentiment. Dell is recovering from the global slowdown a bit slower than its competitors because of its reliance on commercial versus consumer business, writes Kelvin Soh for Reuters. Dell did say, however, that PC demand has picked up following the launch of Windows 7 from Microsoft (NASDAQ: MSFT). The Technology Select SPDR ETF (NYSE: XLK) and the iShares Dow Jones U.S. Technology Index Fund (NYSE: IYW) are both just down fractionally for the day. However, Dell’s stock is currently down more than 8%. (For more stories on the technology sector, see our technology category).

Home-building giant DR Horton (NYSE: DHI) said today that orders surged 26% on a unit basis and that it narrowed its fiscal fourth-quarter loss. However, the company did miss analyst estimates and took hefty land-related charges, reports Dawn Wotapka for the Dow Jones Newswires. The company went on say that conditions are still challenging in the industry because of rising unemployment, weak consumer confidence and high inventory levels. The stock is currently down more than 9%, while the SPDR S&P Homebuilders ETF (NYSE: XHB) is down 2% today. (For more stories on the homebuilding industry, see our homebuilders category).

Tony D’Altorio contributed to this article.

A reputable biotechnology company has filed for Chapter 11 this week, deCODE Genetics Inc (NYSE: DCGN), the company that famously compiled the genetic code of nearly every Icelander for research. The company crushed under $200 million in debt and investors may have to call it a wash, reports Brettt Arends for The Wall Street Journal. (What does biotech need to thrive?)

For other companies in the sector, the outlook is looking brighter. IPOs are coming back and some of the speculative companies have surged off their lows.

Talecris Biotherapeutics (NYSE: TLCR) just raised $950 million, a sign that investors are ready to wade back into the markets again.

Biotech can be a risky sector with mixed investment results. Many companies are working on projects that may one day bring profits, but those projects may not see the light of day for years, if ever.

That’s where ETFs come in. How can anyone know which biotechnology companies will be winners in the long run? ETFs help spread out the risk and eliminate the need for guesswork and single-stock picking. (Read more about the biotechnology sector).

If you decide this sector is right for your investment needs, go in with a strategy in place and a stop-loss in mind. (How to follow the trends).

For more stories about biotechnology, visit our biotechnology category.

• PowerShares Dynamic Biotech & Genome (NYSEArca: PBE): up 18.2% year-to-date

• SPDR S&P Biotechnology (NYSEArca: XBI): down 4.5% year-to-date

The U.S. index of Leading Economic Indicators (LEI) rose 0.3% in October, marking the seventh consecutive monthly gain, while the Philly Fed regional survey of business activity rose to 16.7 in November, a bit better than expected, reports Bob Willis for Bloomberg. Claims for jobless benefits remained at a 10-month low.

Semiconductor stocks are leading technology stocks lower after a downgrade on 10 semiconductor stocks, including Intel (NASDAQ: INTC) – which is down nearly 5.5% after the Bank of America/Merrill Lynch downgrade, reported Tenzin Pema for Reuters. Merrill said the supply of chips is growing faster than the demand, putting earnings at risk. So far in today’s trading, the Semiconductor HOLDRS (NYSE: SMH) is down about 4% and the SPDR S&P Semiconductor ETF (NYSE: XSD) is also down about 4%. (For more stories on the semiconductor industry, please see our semiconductor category).

A computer glitch this morning at the Atlanta airport, the busiest in the nation, caused cascading flight delays across the nation, reported Brian Knowlton of The New York Times. Air traffic controllers were forced to program flight plans manually. So far in today’s trading, the iShares Dow Jones Transportation Average Index Fund (NYSE: IYT) is down nore than 2% and  the Claymore/NYSE Arca Airline ETF (NYSE: FAA) is down more than 3%. (For more news on the airline industry, please see our airline category).

On the corporate front, there was more downbeat employment news. AOL, which is being spun off from Time Warner (NYSE: TWX), is asking their employee base of about 6,900 for 2,500 volunteers to be laid off, reports Nat Worden of the Dow Jones Newswires. If the voluntary program is unsuccessful, there will be involuntary layoffs announced by AOL. (For more stories on the media industry, see our media category).

Tony D’Altorio contributed to this article.

Two sectors that have performed well over the past year and are poised to continue moving upward in a recovering economy are technology and consumer discretionary, according to Benzinga.com. Additionally, the transportation sector seems to have some appeal because transportation is required to move finished goods.

Technology is prospering because consumers have an insatiable desire for innovation, while the latest technology gives businesses a much-needed competitive advantage. (More on technology).  The sector can be accessed through the iShares Dow Jones U.S. Technology Sector Index Fund (NYSE Arca: IYW), which is up 54.6% year-to-date.

The consumer discretionary sector has been pummeled by recent economic conditions as consumers remain loath to spend. As the recovery continues and confidence is regained, though, it’s wise to keep in mind that the most beaten-down areas offer the greatest potential for growth. (Why donsumer discretionary is hot).  It can be accessed through the Vanguard Consumer Discretionary ETF (VCR), which is up 39.6% year-to-date.

On the same token, since this is expected to be a soft recovery, it’s worth keeping an eye on the consumer staples sector, as well. The unemployment rate is at a 26-year high, which means that there are still millions of people feeling the pinch. When they shop, they’re looking for what they need, not what they want. PowerShares Dynamic Consumer Staples (NYSEArca: PSL) is up 17.5% year-to-date.

The transportation sector has been hit hard and will naturally improve as the economy does; even Warren Buffett seems good value in the sector, based on his recent acquisition of Burlington Northern (NYSE: BNI). (Where transportation goes from here).  It can be accessed through the iShares Dow Jones U.S. Transportation (IYT) which is up 13.4% year-to-date. For more stories on the transportation sector, visit our transportation category.

The shipping sector is another indicator of how the world is recovering. Once global demand resumes, shipping prices should recover and an increase in available ships will be moot. (What challenges are facing the shipping industry?) As consumers begin to spend more and nations struggle to rebuild, this sector will ultimately reflect a shift in tides. Claymore/Delta Global Shipping (NYSEArca: SEA), up 29.1% year-to-date.

Last, but certainly not least, consider emerging markets. While the United States recovery lags, that doesn’t mean there are no opportunities. Emerging markets have outperformed handily this year – iShares MSCI Emerging Markets (NYSEArca: EEM) is up 61.6% year-to-date, vs. the S&P 500, which is up 20.4%.

For full disclosure, Tom Lydon’s clients own shares of EEM.

Kevin Grewal contributed to this article.

The Labor Department reported that new claims for unemployment fell to the lowest number since Jan. 3. The figure was also below what economists had reported.

Wal-Mart (NYSE: WMT) reported that its profit were up 3.2%, although sales at stores open for at least one year were down slightly as economic conditions remained challenged. Wal-Mart has been a standout in the recession, thanks to being considered a low-price leader. The store attributed the drop in sales solely to falling prices, reports Stephanie Rosenbloom for The New York Times. Consumer Staples Select Sector SPDR (NYSEArca: XLP) was down slightly this morning; Wal-Mart is 10%. For more stories on consumer activity, visit our retail category.

Intel (Nasdaq: INTC) has been ordered to pay $1.25 billion as part of a settlement in an antritrust and patent case. Advanced Micro Devices had charged Intel with using strong-arm tactics to pressure PC and server makers to use its processors. In return for the settlement, AMD would withdraw its complaints, say Vindu Goel and James Kanter for The New York Times. iShares Dow Jones U.S. Technology (NYSEArca: IYW) is trading slightly lower this morning; Intel is 6%.

Treasury Secretary Timothy Geithner told Asian nations this morning that the Obama administration was committed to having a strong dollar. The dollar has recently hit a 15-month low on soaring budget deficits, reports Reuters.

The FDIC has ordered banks to prepay $45 billion in order to rebuild its deposit fund. The enormous rate of bank failures this year has drained the coffers, says Alison Vekshin for Bloomberg. The failures have led to a deficit in the fund for the first time since 1991.

For more stories on banks, visit our financial category.

Wal-Mart (NYSE: WMT), Target (NYSE: TGT) and Amazon (NasdaqGS: AMZN) are engaged in an online price war over DVDs, reports Jeremy Hobson for Maretplace. (How name brands are boosting consumer staples).

Wal-Mart lowered prices of popular DVDs to $10 in hopes that the low prices would help draw customers to shop at their site and buy big-ticket items. Not to be bested, Amazon is offering DVDs at $9.99, but Wal-Mart countered with a $9.98 offer. (Internet ETF to capture holiday shopping climate)

Jeff Dotson, marketing teacher at Vanderbilt University, says these companies are operating on thin margins, and if enough copies of DVDs are sold, the companies can take a hit. Frank Luby, pricing expert at Simon Kutcher and Partners, argues the online retailers are taking a necessary hit in order to obtain the title of “lowest-priced retailer.”

For more information on the retail sector, visit our retail category.

• First Trust Dow Jones Internet Index (NYSEArca: FDN): currently up 67.5% year-to-date; AMZN is 5.6%

• Vanguard Consumer Discretionary ETF (NYSEArca: VCR): up 37.3% year-to-date; TGT is 3.0%, AMZN is 2.8%

• Retail HOLDRs (AMEX: RTH): up 24.3% year-to-date; WMT is 20.2%, TGT is 8.5%, AMZN is 7.3%

Max Chen contributed to this article.

Leveraged and inverse ETFs aim to have the funds’ movements correspond to the inverse of the relevant market indicator on a daily basis.  One must keep in mind that these ETFs come with risks, as well. The biggest issue to understand is the meaning of the word “daily” when it comes to these ETFs: daily, they will track their benchmarks. The further out an investor gets, the greater the risk that the fund won’t track its benchmark perfectly. This effect is heightened in volatile markets. (Check out our special report on these investment tools).

There are a growing number of providers of such ETFs today, including Direxion, ProShares and Rydex.

These funds can be appealing to investors with the risk appetite for several reasons:

• They can be used as a hedge if an investor believes the market is due for a short-term correction. If an investor is holding a position, but doesn’t necessarily want to sell it, then a leveraged or inverse ETF can be used to hedge against any potential loss.
• They can be used to capitalize on market movements. If an investor believes that the S&P 500 is due for a nice run, a leveraged ETF to maximize this movement might be just what the investor wants. (How leveraged ETFs are misunderstood).

These funds aren’t for everyone – always be fully aware of the risks and know how they work before you invest.

For more on leveraged and inverse ETFs, visit our leveraged ETFs category.

Some examples of common inverse and leveraged ETFs are:

• ProShares Short S&P 500 (SH), which seeks to give 100% of the inverse daily performance of the S&P 500.

• ProShares Ultra S&P 500 (SSO), which seeks to give 200% of the daily performance of the S&P 500.

• Emerging Markets Bear 3x Shares (EDZ), seeks to give 300% of the inverse daily performance of the MSCI Emerging Markets Index
  

• Technology Bull 3x Shares (TYH), seeks to give 300% of the daily performance of the Russell 1000 Technology Index

• Rydex 2x Russell 2000 (NYSEArca: RRY), seeks to give 200% of the daily performance of the Russell 2000 Index

• Rydex Inverse 2x S&P MidCap 400 (NYSEArca: RMS), seeks to give 200% of the inverse daily performance of the Mid Cap 400 Index

Kevin Grewal contributed to this article.

Many electronic makers have come to the market with aggressive cost-cutting plans and incentive to gain back consumer dollars, as the global outlook for the market shows signs of improvement.

• Although Playstation maker Sony posted fourth-quarter losses, the company’s latest results beat analysts’ forecasts by a wide margin, reports Hiroko Tabuchi for The New York Times.

• Samsung Electronic is still the ruler; the performance of other companies couldn’t match the world’s largest maker of televisions. Samsung said profits in the most recent quarter had tripled to a record $3.14 billion as it capitalized on investment in new panel technologies and marketing. It also got a boost from a weak won, which gave it the ability to undercut Sony’s prices.

• Panasonic notched its first profit in a year as sales of DVD recorders and household appliances showed some recovery. It’s now betting on batteries for hybrid and electric cars by merging with Sanyo.

Who can grab the most market share by cost cutting and appealing to consumers?

For more stories about consumer discretionary, visit our consumer discretionary category.

• PowerShares FTSE RAFI Japan (NYSEArca: PJO): down 1.1%; holds 2.8% of Sony

• SPDR S&P International Cons Disc Sector (NYSEArca:IPD): up 55% year-to-date; holds 2.2% Sony

• iShares S&P Global Technology (NYSEArca: IXN): up 38.2% year-to-date; holds 4.2% Samsung

• iShares MSCI Emerging Markets Index (NYSEArca: EEM): up 64.5% year-to-date; holds4.3% Samsung

• iShares MSCI South Korea (NYSEArca: EWY): up 63.4% year-to-date; Samsung, 19.1%

• WisdomTree International Technology Sector Fund (NYSEArca: DBT): up 18.9% year-to-date; Panasonic is 6.2%

Apple’s (NasdaqGS: AAPL) iPhone may be threatened by Motorola’s (NYSE: MOT) Droid, a smartphone serviced on Verizon’s (NYSE: VZ) network and powered by Google’s (NasdaqGS: GOOG) Android 2.0 operating system, according to The Week. (The smartphone push in China).

John Herman of Gizmodo believes that the iPhone is already so entrenched in the consumer world that it will still have a dominating presence. David Coursey of PC World argues that the Droid’s practical features are a good lure for consumers looking for something not already on the market.

MG Seigler at TechCrunch sees that Google isn’t trying to undermine iPhones, but rather sell its operating system, which works on a range of different devices. (Four reasons to watch global telecom).

Many are arguing that the Droid is the most sophisticated mobile device from a hardware standpoint to hit the market, reports Michael Arrington for The Washington Post. The Droid smartphone may be as thin or thinner than the iPhone 3GS, with a slide out physical keyboard and removable battery.

For more information on the technology sector, visit our technology category.

• Vanguard Telecom Services (NYSEArca: VOX): up 13.2% year-to-date; Verizon is 20.3%

• iShares Dow Jones U.S. Technology (NYSEArca: IYW): up 46.4% year-to-date; Apple is 9%, Google is 6.5%

• iShares S&P Global Telecommunications (NYSEArca: IXP): up 5.7% year-to-date; AT&T is 15.3%; Verizon is 8.2%

• Technology Select Sector SPDR (NYSEArca: XLK): up 35.5% year-to-date; Apple is 7.7%; AT&T is 8.9%; Google is 4.8%; Verizon is 4.5%

For full disclosure, Tom Lydon’s clients own shares of XLK.

Max Chen contributed to this article.

Sites such as Amazon.com Inc. (NasdaqGS: AMZN)  and eBay Inc. (NasdaqGS: EBAY) are providing cost-conscious shoppers with the means to sniff out popular items at low costs, writes Don Dion for TheStreet. On Thursday, Amazon stated that third-quarter earnings jumped 69% on improved sales across all its product lines, reports Dan Gallagher for MarketWatch. (Can you find bargains with a luxury ETF?)

One way to gain investment exposure on the internet holiday shopping bonanza is through  First Trust Dow Jones Internet Index (NYSEArca: FDN), currently up 69.2% year-to-date.

FDN includes 41 companies that generate a minimum of 50% of their annual sales from the internet. Companies included have a stock price of greater than $10 and market cap of at least $100 million. The fund has a net expense ratio of 0.6%. (Is a fresh approach all it takes with retail ETFs?)

The top 10 holdings make up 51% of the total assets. Some major holdings include: AMZN at 5.6% , EBAY at 6.5%, Google Inc. (NasdaqGS: GOOG) at 9.8%, Yahoo! Inc. (NasdaqGS: YHOO) at 4.9%, Priceline.com Inc. (NasdaqGS: PCLN) at 4.2% and Expedia Inc. (NasdaqGS: EXPE) at 3.7%.

Sector allocations include: software, 24.8%; hardware, 4.2%; media, 1.4%; telecommunications, 38.4%; consumer services, 22.6%; business services, 2.5%; and financial services, 6.1%.

For more information on technology, visit our technology category.

Max Chen contributed to this article.