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Huge Earnings Week for These ETFs


Last week, nearly 30 S&P 500 companies reported earnings.

Of the 52 S&P 500 members that have reported thus far, 62% have exceeded analysts’ profit estimates, and 63% have topped revenue forecasts, according to data compiled by Bloomberg.

Although this is a holiday-shortened week, the earnings ante will be upped as 60 S&P 500 member firms report, a group that includes several members of the Dow Jones Industrial Average.

Tuesday will be a busy day for several well-known ETFs, including the Market Vectors Oil Service ETF (OIH) . Nearly 21% of OIH’s constituency, Schlumberger (SLB), reported last Friday, but today, Halliburton (HAL) and Baker Hughes (BHI) deliver results.

Those stocks combine for about 16.7% of OIH’s weight. Schlumberger, the largest oil services provider, gave some clues as to what to expect out of the sector this earnings season when it gained 1.8% last Friday. OIH is down slightly to start 2014 as energy stocks have been lethargic performers. [Energy ETFs Look to Establish Leadership]

Four Dow components also report today, a group comprised of International Business Machines (IBM), Johnson & Johnson (JNJ), Travelers (TRV) and Verizon (VZ). That works out to about 16% of the SPDR Dow Jones Industrial Average ETF (DIA) . McDonald’s (MCD), United Technologies (UTX), Microsoft (MSFT) and Procter & Gamble (PG), which combine for nearly another 16% of DIA, report late this week.

Speaking of Dow indices, the Dow Jones Transportation Average as represented by the iShares Transportation Average ETF (IYT) will be active on the earnings front. Delta Airlines (DAL) gets the ball rolling today followed by Norfolk Southern (NSC) on Wednesday. Alaska Air (ALK), JB Hunt (JBHT), Southwest Airlines (LUV), United Continental Holdings (UAL) and Union Pacific (UNP) follow on Thursday.

Kansas City Southern (KSU) takes its turn on Friday. Add all those stocks up, and the result is about 46% of IYT’s reporting earnings this week. [Transportation ETF Gets an Upgrade]