ETF Trends
04-17-2008, 03:10 PM
ETF Trends - Keeping a Grip on Exchange Traded Funds (ETFs)
http://www.etftrends.com/images/2008/04/17/nascar.jpg (http://etftrends.typepad.com/photos/uncategorized/2008/04/17/nascar.jpg) The nearly weeklong winning streak for the transportation exchange traded fund (ETF) seems to have ground to a halt. After rising 5.2% since April 11, the iShares Dow Jones Transportation Average (IYT (http://finance.yahoo.com/q?s=IYT)) is down 2.4% midday.
Airline woes could be weighing on the fund. Continental (CAL (http://finance.yahoo.com/q?s=cal)) reported that ever-rising fuel costs contributed to a loss in the first quarter, the Associated Press reports (http://biz.yahoo.com/ap/080417/earns_continental.html). Fuel has become the airline's biggest expense, passing up labor. Continental is 1.9% of IYT.
Year-to-date, the fund is up 11.8%. It had been rising despite high oil prices. Air transport, in particular, is sensitive to fuel prices, reports Investor's Business Daily (http://money.cnn.com/news/newsfeeds/articles/newstex/IBD-0001-24330549.htm). Six of the 20 stocks in the fund center largely around planes.
If oil prices come down, one economists predicts that the fund could go on a run, especially since the last time the cost of fuel was so high, cars and trucks were much less efficient than they are now.
http://www.etftrends.com/images/2008/04/17/z_7.png (http://etftrends.typepad.com/photos/uncategorized/2008/04/17/z_7.png)
For full disclosure, some of Tom Lydon's clients own shares of IYT.
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/272398941/transportation.html)
http://www.etftrends.com/images/2008/04/17/nascar.jpg (http://etftrends.typepad.com/photos/uncategorized/2008/04/17/nascar.jpg) The nearly weeklong winning streak for the transportation exchange traded fund (ETF) seems to have ground to a halt. After rising 5.2% since April 11, the iShares Dow Jones Transportation Average (IYT (http://finance.yahoo.com/q?s=IYT)) is down 2.4% midday.
Airline woes could be weighing on the fund. Continental (CAL (http://finance.yahoo.com/q?s=cal)) reported that ever-rising fuel costs contributed to a loss in the first quarter, the Associated Press reports (http://biz.yahoo.com/ap/080417/earns_continental.html). Fuel has become the airline's biggest expense, passing up labor. Continental is 1.9% of IYT.
Year-to-date, the fund is up 11.8%. It had been rising despite high oil prices. Air transport, in particular, is sensitive to fuel prices, reports Investor's Business Daily (http://money.cnn.com/news/newsfeeds/articles/newstex/IBD-0001-24330549.htm). Six of the 20 stocks in the fund center largely around planes.
If oil prices come down, one economists predicts that the fund could go on a run, especially since the last time the cost of fuel was so high, cars and trucks were much less efficient than they are now.
http://www.etftrends.com/images/2008/04/17/z_7.png (http://etftrends.typepad.com/photos/uncategorized/2008/04/17/z_7.png)
For full disclosure, some of Tom Lydon's clients own shares of IYT.
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/272398941/transportation.html)