ETFs React to Mixed Q3 Earnings

Major ETFs saw mixed movement Tuesday as companies across sectors reported their third-quarter earnings.

The First Trust Nasdaq Transportation ETF (FTXR) emerged as a top performer, rising nearly 1% after General Motors shares surged 10.3%. The transportation sector was boosted on the automaker's strong quarterly results and raised full-year guidance.  

Defense-focused ETFs faced pressure following mixed earnings reports. The iShares U.S. Aerospace & Defense ETF (ITA) declined 3.1% after GE Aerospace tumbled 8.4% on mixed quarterly results. Similarly, the First Trust Indxx Aerospace & Defense ETF (MISL) fell 1.8% despite Lockheed Martin beating earnings expectations and raising its full-year outlook. 

The iShares U.S. Telecommunications ETF (IYZ) edged 0.4% downward after Verizon Communications reported disappointing results. The telecom giant's shares dropped 4.6% after posting third-quarter revenue of $33.33 billion, below analyst estimates. 

The Core Alternative ETF (CCOR) dipped 0.5% following Genuine Parts' earnings miss. The company's shares plunged 19.8% after reporting weaker-than-expected third-quarter results. 

Broad stock ETFs are sliding midday as Federal Reserve officials dampen expectations for deep, rapid interest rate cuts. 

In comments delivered yesterday to the Chartered Financial Analysts Society of Kansas City, Federal Reserve Bank of Kansas City President and CEO Jeff Schmid called for “a cautious and gradual approach to policy” that would “avoid outsized moves, especially given uncertainty over the eventual destination of policy and my desire to avoid contributing to financial market volatility.” 

The SPDR S&P 500 ETF Trust (SPY) dipped 0.2% in early afternoon trading while the SPDR Dow Jones Industrial Average ETF Trust (DIA) shed some losses and was down about 0.1%. The Invesco QQQ Trust (QQQ), which tracks the tech-heavy Nasdaq, fell 0.1%. 

Fixed income ETFs fluctuated as treasury yields jumped and interest rates failed to drop despite rate cuts at the federal level. The iShares 20+ Year Treasury Bond ETF (TLT) added 0.1% and the Vanguard Total Bond Market ETF (BND) was unchanged. 

Commodities performed better, led by oil ETFs. The United States Oil Fund (USO) jumped 2.9% as efforts to halt fighting in the Mideast stalled.

The iShares Silver Trust (SLV) surged 3% to add to its 44% gain over the past year. The SPDR Gold Trust (GLD) added 1%. 

As spot gold prices close in on $2800 an ounce, gold ETFs have soared to record highs. GLD, the SPDR Gold Trust rose .65% on Tuesday, hitting a record high of nearly $253 a share. Flows into the fund have topped $935 million over the past 5 days, one of the top fund inflows over the past week. 

Year to date, GLD's performance of over 31% has blown broad market performance (which sits at under 24%) out of the water as investors continue to maintain growing interest in alternative investments.

Other gold ETFs have continued to outperform. IAU, the iShares Gold Trust rose nearly three quarters of a percentage point Tuesday. The fund is also sitting at its record highs. JNUG, the Direxion Daily Junior Gold Miners Index Bull 2X Shares was one of the top gainers on Tuesday, according to etf.com data, and soared more than 4% as the trading session headed to midday. 

Year to date, JNUG has jumped over 72.5%, one of the top performing leveraged ETFs for the year so far, according to the etf.com Pulse Tool.

Broad market ETFs however were in the red Tuesday as rising bond yields kept equities under pressure.

SPY, the SPDR S&P 500 ETF Trust dropped a quarter of a percentage point, while DIA, the SPDR Dow Jones Industrial Average ETF Trust fell more than .10%. QQQ, the tech-heavy Invesco QQQ Trust sank .25%.