Major ETFs Slide as Boeing, McDonald's Weigh on Markets

Major Index ETFs tumbled Wednesday, with the SPDR Dow Jones Industrial Average ETF Trust (DIA) and SPDR S&P 500 ETF Trust (SPY) both declining about 1%. The tech-heavy Invesco QQQ Trust (QQQ) saw steeper losses, falling over 1.5%. 

The First Trust Indxx Aerospace & Defense ETF (MISL) dropped 0.9% as Boeing shares slipped nearly 1.5%. The aerospace manufacturer reported its largest quarterly loss since 2020, posting a $6 billion drop in the third quarter, with $4 billion attributed to its commercial airplane division.

The Invesco Solar ETF (TAN) declined 0.5% following disappointing results from Enphase Energy. The company's shares plunged 15.1% after reporting weak earnings and providing lower-than-expected fourth-quarter revenue guidance. 

The Neuberger Berman Next Generation Connected Consumer ETF (NBCC) fell 0.5% amid concerns over McDonalds. The fast-food giant's shares dropped around 5% after the CDC lined an E. coli outbreak to its Quarter Pounder burgers. 

Equity and bond ETFs were largely seas of red today as investors tussled with a range of issues from an E.coli outbreak at McDonald's Corp. restaurants, to Tesla Inc.'s upcoming earnings, to rising treasury yields ahead of a divisive and contested presidential election.

The Consumer Discretionary Select Sector SPDR Fund (XLY), with a 4.7% McDonald's allocation, dropped 1.1% around noon New York time Wednesday. The world's biggest fast-food restaurant chain's shares fell more than 6% after a fatal bacteria outbreak was tied to the chain's Quarter Pounder burgers. 

The SPDR Dow Jones Industrial Average ETF Trust (DIA), which tracks the 30 biggest stocks and has a 4.8% McDonald's allocation, dropped 0.8%. 

Other broad equity ETFs, which are hovering around all-time highs, retreated. The Vanguard S&P 500 ETF (VOO), up 41% over the past year, lost 0.7%. 

Ahead of Tesla earnings, and on the heels of Nvidia Corp. shares slipping after the company said a design flaw was fixed, tech ETFs dropped. The Roundhill Magnificent Seven ETF (MAGS), which holds both companies' shares, dipped 1.4% while the Nasdaq tracking Invesco QQQ Trust (QQQ) lost 0.9%.

Short-term bond ETFs wavered as U.S. Treasury yields moved higher, with the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) fluctuating between advancing and declining. The iShares 20+ Year Treasury Bond ETF (TLT) was lower-to-little changed.