The third-quarter earnings didn’t much to lift up the US Global Jets ETF (NYSEArca: JETS), which was down slightly at 0.4%. Other ETFs with Boeing holdings were down, notably aerospace and defense ETFs–the iShares U.S. Aerospace & Defense ETF (Cboe: ITA) fell 0.98%, PowerShares Aerospace & Defense Portfolio (NYSEArca: PPA) slid 0.83% and the SPDR S&P Aerospace & Defense ETF (NYSEArca: XAR) fell 1.10%.
The drop in the major indexes were a result of another round of sell-offs in the technology sector in what has been a red October for most U.S. equities.
“Since early February through late September, US stocks were on a tear, while stocks overseas were mostly stumbling,” said Ed Yardeni, president and chief investment strategist at Yardeni Research. “So far this month, the US has coupled with the bearish sentiment overseas.”
“Valuation multiples have dropped sharply this month, making stocks attractive,” he said in a note. “This is more of a panic attack rather than the beginning of a bear market; we believe that the bull market will continue into next year. The next relief rally should be triggered by continued signs of economic growth combined with subdued inflation.”
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