A 5% rally in Level 3 Communications (NasdaqGS: LVLT) wasn’t enough to put telecom exchange traded funds (ETFs) in the green Monday as traders bid the stock higher before the company’s quarterly results.

Level 3 is expected to release first-quarter results on Tuesday. Wall Street analysts are projecting a loss of 10 cents a share on revenue of $922.6 million, on average.

ETFs that track the telecom sector were mixed on Monday. They include SPDR S&P Telecom ETF (NYSEArca: XTL), iShares Dow Jones US Telecommunications (NYSEArca: IYZ), Vanguard Telecommunications (NYSEArca: VOX) and Telecom HOLDRs (AMEX: TTH).

The recent bid by Level 3 to acquire Global Crossing (NasdaqGS: GLBC) has fueled hopes for more deals in the telecom sector.

SPDR S&P Telecom ETF

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