Posted on 04/25/2011
Earnings season is now in full swing, which can often cause some added volatility for the market, as there are inevitably companies that will either exceed or fall short of analysts' forecasts. Significant price swings in individual equities can also be cause for changes in the price of ETFs that hold those stocks. As a result, we have made a habit of providing you with a list of select companies who will be reporting earnings in the coming weeks, as well as those ETFs they underlie. With that said, below is this week's list.
In previous articles we have been able to identify a handful of ETFs that hold two or more of the companies which are due to report within the coming days. This week's list doesn't have as much overlap within individual ETFs, but we do notice a few noteworthy trends. For instance, there are a fair amount of Energy related stocks reporting earnings, with Chevron (CVX) and Apache (APA) making our list. Chevron (CVX) has a significant weighting of 13.17% in the Energy Select Sector SPDR Fund (XLE); and because there are a number of other energy-related companies (not listed below) that are also announcing their earnings this week the results could potentially have an impact on the price of the XLE or other Energy ETFs.
We also came across several Basic Material and Technology names. In regards to specific Technology ETFs that may feel the pressure of earnings season more than others, the PowerShares Nasdaq Internet ETF (PNQI) caught our eye. The table below shows it holds Amazon, Netflix, and Akamai Technologies. These three companies have a combined weighting of almost 16% in PNQI.