ETF Trends
ETF Trends

Street-blasting earnings from Apple, Yahoo, McDonald’s and Boeing are powering exchange traded funds (ETFs) early today. Meanwhile, Wall Street’s biggest banks delivered earnings results amid stepped-up scrutiny from regulators.

Two tech giants were market superstars in the first quarter.

  • Apple (NASDAQ: AAPL) announced its best non-holiday quarter ever yesterday after the market’s close: a 90% rise in profit and a 49% increase in sales. Despite a slow economy, consumers showed their Apple love by snapping up iPhones, iPods and now iPads in droves. Following the announcement, shares surged 5% to a record high in after-hours trading.
  • Yahoo (NASDAQ: YHOO), a company that has struggled of late, finally saw its revenue move higher for the first time in more than a year last quarter. The gains primarily came from online advertising, which is Yahoo’s main income source. It surged 20% in the last year.

As a result, iShares Dow Jones U.S. Technology (NYSEArca: IYW) is up about 0.4% today; Apple is 10.4%; Yahoo is 1.1%. [Tech ETFs Riding on Robust Earnings Results.]

Morgan Stanley (NYSE: MS) is the latest among the big banks to announce strong earnings in the first quarter, further lifting the SPDR KBW Bank ETF (NYSEArca: KBE), which is up nearly 2% this morning. Morgan Stanley racked up $4.1 billion in sales, compared with $1.4 billion a year ago. [6 ETFs for a Financial Sector Recovery.]

Despite the fact that Boeing’s (NYSE: BA) profit declined nearly 15% in the first quarter, beating expectations, the company says it’s still on target for delivery of the 787 by the end of the year. The 787 has been hotly anticipated; analysts had been concerned that delivery would be pushed back once again. Boeing expects revenue next year to be higher. PowerShares Aerospace & Defense (NYSEArca: PPA) is up 0.7% this morning; Boeing is 6.3% of the fund.

Consumers want value, McDonald’s (NYSE: MCD) gave it and was handsomely rewarded for doing so. Earnings rose 11% in the first quarter, based on strong sales both worldwide and domestically as consumers gravitated toward the fast food eatery’s value menu. PowerShares Dynamic Food & Beverage (NYSEArca: PBJ) is up about 0.2% this morning; McDonald’s is 4.7%. [Restaurant ETFs Looking Mighty Tasty.]

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.