Tuesday was a brutal day for Wall Street and the exchange traded fund (ETF) Broadband HOLDRs (BDH) was given no mercy. The ETF fell to its lowest level in more than four years, weighed down by weal link Motorola Inc. (MOT) as fourth quarter earnings have investors defensive, reports Trading Markets.
The ETF traded at 4.6% down at $12.20 after touching down on a low of $11.60 intraday. This level hasn’t been seen since October 2003. Motorola makes up 20.3% of assets in BDH and those fell 10.4% to $11.95.
Motorola’s earnings were announced on Wednesday, reports Shira Ovide for Dow Jones Newswires, and the news was about as investors expected. While the company did exceed estimates for its fourth-quarter profits, its also expected to take a loss in the first quarter. The main culprit in the decline is the company’s cell phone division, and they’re still hunting for new phones that will excite customers.
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.