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3 ETFs For This Week's Slew Of Earnings Reports

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3 ETFs For This Week's Slew Of Earnings Reports

The big money center banks got second-quarter earnings season rolling last week, but hundreds more reports are coming this week. In fact, the financial services sector is nowhere near done with second-quarter earnings as dozens of asset managers, credit card issuers and regional banks will step into the earnings confessional this week.

For traders looking for other industries and sectors with earnings catalysts this week, they're in luck because opportunities abound. Of course, plenty of exchange-traded funds will be worth tapping into this week, too.

Here are three ETFs that will be stepping into the earnings limelight in a big way this week.

U.S. Global Jets ETF (JETS)

The U.S. Global Jets ETF (NYSE: JETS) enters airlines earnings season in a tenuous sport. Amid a resurgence of coronavirus cases, the lone ETF dedicated to this industry is down 9% over the past month. Undoubtedly, JETS will be tested this week.

JetBlue (NASDAQ: JBLU) gets things going on Tuesday with United Airlines Holdings (NASDAQ: UAL) following on Wednesday. On Thursday, American Airlines (NASDAQ: AAL) and Southwest (NYSE: LUV) report. Those four stocks combine for nearly a third of the JETS roster.

Some smaller JETS components also report throughout the week.

Technology Select Sector SPDR (XLK)

Up 16.64% year to date, the Technology Select Sector SPDR (NYSE: XLK) will face some earnings-related tests this week. On Wednesday after the close, Microsoft (NASDAQ: MSFT) reports followed by Intel (NASDAQ: INTC) on Thursday. That duo combines for a quarter of XLK's weight.

“Because of its focus on meeting customers' immediate needs during the pandemic, Microsoft has managed to drive revenue and margins on an impressive scale through Microsoft 365, including its Teams messaging service, gaming, and Azure cloud computing service,” said Morningstar in a recent note. “As one of two public cloud providers, we anticipate that this wide-moat company will continue to use its dominant position of on-premises architecture to allow customers to move to the cloud easily and at their own pace.”

Consumer Discretionary Select Sector SPDR (XLY)

A company by the name of Amazon (NASDAQ: AMZN) reports Thursday and that's meaningful for XLY because the consumer cyclical fund devotes over 24% of its weight to that stock, or nearly twice the weight assigned to its second-largest holding.

“After bottoming out in mid-March amid early coronavirus fears, Amazon made an astounding rebound thanks to increases in its Prime member engagement and Amazon Web Services usage,” according to Morningstar. “We anticipate the wide-moat company will continue to expand its already massive scope. However, we believe investors should keep an eye on Amazon's current, and expensive, stock price.”

 

Related Articles (XLK + XLY)

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