ETF Trends
ETF Trends

The iShares Transportation Average ETF (NYSEArca: IYT) was in the red Friday morning as a nearly 6% sell-off in top holding United Parcel Service (NYSE: UPS) weighed on the fund.

UPS shares were under pressure after the company lowered its full-year profit outlook. Also, it expects second-quarter earnings to come in below Wall Street forecasts.

“Overcapacity in the global air freight market, increasing customer preference for lower-yielding shipping solutions, and a slowing U.S. industrial economy drove revenue and operating profit below expectations,” the company said. “In addition, UPS experienced some slowing in package volume growth as a result of labor negotiations.”

UPS is the fourth-largest holding in the Transportation Average ETF at 7.5% of the portfolio.

The fund enjoyed a big rally earlier this week driven by a surge in FedEx (NYSE: FDX) shares. [FedEx Ackman Talk Fuels Transportation ETF’s 4% Rally]

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