Transportation ETF Hit By UPS's Lower Outlook

[ETF Trends]

ETF Trends - Keeping a Grip on Exchange Traded Funds (ETFs)

The transportation exchange traded fund (ETF) is down 2.8% midday after UPS (UPS), a major component of the fund, announced a lowered outlook.
The world's largest shipping carrier blamed a weak economy and the skyrocketing cost of fuel for needing to trim its first-quarter earnings forecast, reports Tim Paradis for the Associated Press. Shares of UPS are down 3.2% in midday trading.
The company is 7.4% of the iShares Dow Jones Transportation (IYT). Year-to-date, the fund is up 9.5%, and is still 4.9% above its 200-day moving average. Its other top holdings are Union Pacific (UNP, 13.1%), FedEx Corp. (FDX, 9.3%) and Burlington Northern Santa Fe Corp. (BNP, 9.2%).
The news only adds to concerns about the health of corporate earnings and the economy at large.

For full disclosure, some of Tom Lydon's clients own shares of IYT.


complete story here...