With all the recent market volatility, exchange traded funds (ETFs) that focus on large capitalization and growth stocks are in the spotlight, according to Banc of America’s chief U.S. investment strategist. News of the Federal Reserve’s interest rate reduction brought an ETF rally today, but John Spence for MarketWatch reports there is more news coming from Wall Street that may affect the market movement.
The third-quarter earnings reports from some major U.S. banks are due this week. Lehman Brothers (LEH) reported today a smaller-than-anticipated 3% decline from a year ago. Other banks to report include Goldman Sachs (GS), Morgan Stanley (MS) and Bear Stearns (BSC). The release of these figures likely will impact the Financial Select Sector SPDR Fund (XLF).
Also, Friday is the simultaneous expiration of stock index futures, stock index options, stock options and single stock futures.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.