With the economy dangerously close to falling into a double-dip recession, many investors have staked their hopes for another market rally on earnings reports and positive guidance for the rest of 2010. Yesterday afternoon, this process officially got under way, with Alcoa
After these early bullish reports, all eyes will now shift to the technology and consumer sectors, which both have key components reporting earnings later today. In addition to Intel, a company that we highlighted in Monday's edition of "Three ETFs To Watch This Week," look for consumer goods companies, specifically those in the food and beverage sector, to be in focus today. That's due to the second-quarter earnings of fast food giant Yum! Brands
YUM's report will offer an interesting look at the consumer sector, since the company maintains both established business in the U.S. and a quickly growing segment in many of the world's key emerging markets (including China and India). It will be interesting to see what YUM's guidance is for the rest of the year in the U.S. market, given the high unemployment levels compared to booming developing markets. In the first quarter, same-store sales in the U.S. were down 1% while operation profits increased in China by 37% [see Nine Twists On Sector ETF Investing].
Food & Beverage ETF In Focus
With this report on tap, look for the PowerShares Dynamic Food & Beverage ETF
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Disclosure: No positions at time of writing.
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