After another choppy trading week, investors will be looking forward to earnings from a number of blue chip firms that have yet to throw their hat in the ring. This past week was another frustrating one, as investors dealt with a mix of data and earnings that pushed and pulled at the market. Of course, the overarching issue came form worries over Spanish debts and the viability of the euro-zone, a problem that never seems to go away. With a busy week on the horizon, we outline three ETFs to keep a close eye on as the coming trading days unfold [see also Defensive Equity ETFs For Earnings Season].
MSCI Spain Index Fund (EWP)
Why EWP Will Be In Focus: EWP has been relatively volatile lately given the concerns over its debt policies as well as news concerning its bond offerings. Predicting its path for the week is highly improbable, but it can be said with a fair degree of certainty that it will remain relatively active. Should more sour news come out of that region, look for this fund to take a major hit, while any good news would see a welcomed rally in this ETF. EWP has already lost around 14% on the year and is no looking to add to that figure any time soon [see also 5 Things To Watch Out For In International Equity ETFs].
Dow Jones U.S. Energy Sector Fund (IYE)
Why IYE Will Be In Focus: This fund focuses on the performance of the U.S. oil sector, giving top holdings of Exxon Mobil (XOM), Chevron (CVX), and ConocoPhillips (COP). The three of those companies combine to make up more than 43% of the ETF and all three of them will be reporting earnings through out the week. Earnings from these oil giants will be under heavy scrutiny as gas prices around the country have been relatively high, leading to a number of consumers taking a hit at the pump. But while gas prices have been high, crude oil has failed to establish any meaningful momentum in the past few weeks, which will also have a significant impact on earnings [see also 25 Ways To Invest In Natural Gas].
Technology Select Sector SPDR (XLK)
Why XLK Will Be In Focus: XLK seeks to replicate a benchmark that invests in various technology firms domiciled in the US. The fund has nearly $10 billion in total assets with an ADV topping 9.7 million. This Tuesday will see big earnings from tech giant Apple (AAPL), which makes up more than 18% of XLK, as many investors will be on the edge of their seat to see how the company performed over this last quarter. Apple’s stock price has been soaring for the majority of 2012, but has hit a few roadblocks in recent sessions, leading many to wonder if it peaked. Also important is that fact that the company announced a dividend payment, which will impact how the firm is valued. Look for commentary on how the new iPad sold as well as any news regarding the next iPhone [see also ETFs To Bet Against Apple].
Disclosure: No positions at time of writing.