As earnings season comes to an end, investors will have one more week to focus on blue chip quarterly results to help guide their trades and positions. Last week saw earnings come in as a mixed bag, but that all changed on Friday when unemployment figures shattered the mold and dropped to 8.3% with 243,000 jobs added in January. But this is just the beginning; in order to prove that we are fully on the rebound, we need several more months of strong growth as well as falling unemployment. For now, however, investors are happy to finally have some good news in a relatively lackluster week. As we look ahead to the coming trading days, we outline three ETFs in particular that investors would do well to keep their eye on [see also 12 High-Yielding Commodities For 2012].
CurrencyShares Euro Currency Trust (FXE)
Why FXE Will Be In Focus: Europe is truly a thorn the the global economy’s side, as positive data and upbeat signs of growth have been slaughtered by continuing fears of a Greek default and worries over the euro itself. Unfortunately, it does not appear that this trend will end any time soon and investors will need to continue to monitor the situation abroad as it will have reaching impacts on their positions at home. This week will see the European Central Bank rate decision, which is expected to hold at 1%. While there is not a high chance of the ECB straying from the norm, the recent weakness the euro has displayed certainly has a number of traders on their toes for Thursday’s report [see also ETF Insider: Euro Woes Weigh On Earnings].
Dow Jones U.S. Oil & Gas Exploration & Production Index Fund (IEO)
Why IEO Will Be In Focus: This ETF seeks to replicate an index that measures the performance of the oil exploration and production sub-sector of the U.S. equity market. The fund has over $377 million in assets as well as an average daily volume that tops 164,000. After market close on Monday, IEO’s second highest holding, Anadarko Petroleum (8.6%) will be reporting their most recent quarterly earnings results. Analysts are calling for EPS of $0.62 with revenues topping $3.3 billion. Anadarko (APC) has had outstanding outstanding earnings management this past year as they have either met or surpassed expectations including a surprise of nearly 40% for the final quarter of 2010. With APC making up such a vital portion of IEO, look for the fund to be especially active on Tuesday as well as the remainder of the week.
Consumer Staples Select Sector SPDR (XLP)
Why XLP Will Be In Focus: This sector SPDR tracks an index which represents the U.S. consumer staples sector. The fund has over $4.8 billion in assets with an average daily volume over 7.5 million. XLP is slated to have a huge week as three of its top ten holdings will be reporting. Philip Morris International (10.7%), Coca-Cola (7.3%), and PepsiCo (4.1%) will all be detailing their most recent quarter as the week progresses. With the three stocks combining for over 20% of this ETF, it will undoubtedly be an active week for one of the largest funds in the space [see also 10 Equity ETFs That Surged In 2011 (And Might Do The Same In 2012)].
Disclosure: Photo courtesy of Eric Chan. No positions at time of writing.