Disappointing earnings from a slew of giants, including Google (NASDAQ: GOOG), Bank of America (BAC) and Citigroup (C) primarily dragged financial exchange traded funds (ETFs) down by as much as 4% in early trading.

JPMorgan’s (NYSE: JPM) earnings may have been an anomaly. Bank of America’s earnings fell 3.1% – less-than-expected, but disappointing to investors. Citigroup’s profit in the second quarter fell 37%, which beat estimates. Analysts were less excited about the 33% decline in revenue, which was more than expected. Financial ETFs were walloped on the news, with the ones holding the biggest banks declining the most. [5 Positives of Financial Reform.]

  • SPDR KBW Bank (NYSEArca: KBE)

How the mighty have fallen. The U.S. dollar had been on a months-long uptrend, especially against the euro, but today it’s dropped to its lowest level in December against the Japanese yen after disappointing consumer sentiment. The euro fell this morning to $1.30, but it was still higher against the dollar. [Japanese Yen ETFs Hit a Fork in the Road.]

  • PowerShares DB U.S. Dollar Bearish (NYSEArca: UDN)

US Dollar, Leveraged ETFs

The Consumer Price Index (CPI) continued to show that inflation isn’t an imminent concern, falling for the third consecutive month in June. The index fell 0.1%, but stripping out energy and food, it rose 0.2%. Core prices remain below the Fed’s inflation target and at 44-year lows. For consumers who are in a position to spend, the lower prices could spell bargains. Retail ETFs don’t seem to be buying that argument today, with most trading lower by between 3% and 1%. [6 ETFs for Rising Imports.]

  • First Trust Consumer Discretionary AlphaDEX (NYSEArca: FXD) is down 2.5% in early trading; top holdings include Netflex (NYSE: NFLX), Las Vegas Sands (NYSE: LVS), PetSmart (NYSE: PETM) and Carnival (NYSE: CCL)

Consumer Discretionary ETFs

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.