ETFs are mixed on Tuesday, as sentiment was pressured by disappointing earnings from Citigroup Inc. and news that Apple Inc. Chief Executive Steve Jobs was taking a medical leave.
- Shares of Apple (NASDAQ: AAPL) are down as much as 4% today after Chief Executive Officer Steve Jobs announced Monday that he will take a medical leave of absence to focus on his health. He will retain his CEO post and remain involved in big decisions for the company. After the closing bell, Apple is expected to report strong fiscal fourth-quarter earnings that could change its stock’s fortunes. Little surprise that PowerShares QQQ (NASDAQ: QQQQ) is down 0.4% – Apple is 20.7% of the ETF.
- Stock of Citigroup Inc. (NYSE: C) dropped almost 4% early Tuesday after the banking giant said it swung to a fourth-quarter profit, but the results fell short of expectations. Total revenue jumped to $18.4 billion from $5.4 billion in the year-ago period, but slipped 11% from the third quarter of 2010. Commenting on 2010, Chief Executive Vikram Pandit said the year was “full of milestones and was critical for the turnaround of this institution.” The Direxion Daily Financial Bear 3X Shares ETF (NYSEArca: FAZ) is up more than 2% today.
- Delta Air Lines Inc. (NYSE: DAL) said it swung to a profit of 2 cents a share in the quarter ended Dec. 31 from a loss of 3 cents a share in the same period a year ago. Adjusted earnings were 19 cents a share in the latest period, while analysts polled by FactSet were looking for a profit of 25 cents a share, on average. Shares of Delta slipped approximately 2.5% in early trading. Guggenheim Airline (NYSEArca: FAA) is down 2.1% today; Delta is 13.7% of the fund.
- Homebuilder sentiment remained unchanged this month. While no decline is good, the index’s levels show that homebuilders are still discouraged about the housing market. The index has been at 16 since November. Anything below 50 indicates negative sentiment. SPDR S&P Homebuilders (NYSEArca: XHB) is down 1.3% today on the news, though its recent performance belies a weak housing market. It’s up 23% in the last six months.
Gregory A. Clay contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.