ETFs largely advanced on Friday after solid results from General Electric (NYSE: GE) and Google (NASDAQ: GOOG), though Bank of America Corp. (NYSE: BAC) reported earnings that missed expectations.
- Shares of Internet search and services firm Google are up about 1.5% in early trading on Friday, a day after posting stronger-than-expected earnings and announcing a management shakeup. The company said co-founder Larry Page will take over the CEO role from Eric Schmidt, who will become chairman. First Trust Dow Jones Internet (NYSEArca: FDN), the ETF with the largest weighting in Google stock at 10.4%, is flat so far this morning.
- General Electric posted a 51% jump in fourth-quarter profit, reflecting robust growth in its technology-infrastructure segment and underscoring a more stable global economy. “GE exits 2010 with significant momentum,” said Jeff Immelt, chairman and chief executive of the Fairfield, Conn.-based company, part of the Dow Jones Industrial Average. General Electric stock surged over 5.5% today. Vanguard Industrials (NYSEArca: VIS) is up 1.2% so far today; GE is 12.6% of the ETF.
- Bank of America Corp. (NYSE: BAC) on Friday reported a fourth-quarter loss of more than $1 billion, reflecting a hefty impairment charge related to real-estate assets. The bank also wrote down $2 billion in its mortgage business. iShares Dow Jones U.S. Financial Services (NYSEArca: IYG) is up 1.2% so far; BAC is 9.8%.
- Hopes that German growth and new European Union measures will help ease the debt crisis boosted European stocks on Friday, though Asia remained shaken by fears that China will have to take action to cool off its economy. Another rise in German business confidence, as measured by the Ifo Institute’s monthly survey, suggested the country will continue to power Europe’s economy as it enjoys strong exports and sees domestic spending picking up. The SPDR Euro Stoxx 50 ETF(NYSEArca: FEZ ) rose more than 2% today.
Gregory A. Clay contributed to this article.
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