JETS follows the U.S. Global Jets Index, which uses fundamental screens to select airline companies, with an emphasis on domestic carriers, along with global aircraft manufacturers and airport companies.
“In addition to reporting earnings that missed expectations, the company also reduced guidance. In a press release, UPS’s chief financial officer said earnings ‘were challenged by a shift in product mix and the continued softness in industrial production,’” according to CNBC.
UPS is a major holding in IYT. Transports are also sensitive to the dollar and interest rates, indicating the group may have gotten some relief Wednesday when the Fed declined to hike interest rates.
However, if the dollar falls as markets price in the Federal Reserve not being able to raise interest rates later this year, industrials could benefit because some members of the sector generate substantial portions of their revenue overseas. Transportation stocks are part of the broader industrial sector.