One notable bright spot in the equities market Tuesday was Sirius XM Radio (NasdaqGS: SIRI), which saw its shares ramp higher by 8% as Wall Street loudly cheered its quarterly numbers.
“Sirius XM reported strong subscriber growth driven by new auto sales that beat both our and Street projectsions,” said analysts at Citadel Securities, although they added revenue and earnings were modestly below forecasts.
The company also boosted its full-year outlook on free cash flow to about $350 million.
Sirius XM is a holding in exchange traded funds (ETFs) tracking the consumer-discretionary sector as well as ETFs following the mid-cap segment of the U.S. market. The stock is a relatively minor holding and the funds followed the major stock indexes lower Tuesday.
Mid-cap stocks have outperformed larger, blue-chip stocks during the rally. For example, SPDR Dow Jones Mid Cap ETF (NYSEArca: EMM) was up 24.5% for the year ended May 2, compared with a 17% rise for the S&P 500, according to Morningstar.
Sirius XM is also a component in First Trust Consumer Discretionary AlphaDex (NYSEArca: FXD).
SPDR Dow Jones Mid Cap ETF
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