ETF Headline Watch: January 25, 2012 (XLK, QQQ, AAPL, VGK)

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ETFs making headlines today are in the tech sector which is hot after Apple’s earnings and Europe which remains the world’s problem child.

Apple Computer (NASDAQ:AAPL) completely blew away analysts’ earnings estimates (as they always do) but this report was more spectacular than ever. Apple’s quarterly profit doubled and sales expanded more than 70% on the strength of 35 million iPhone sales.

The technology sector followed by Technology Select SPDR (NYSEARCA:XLK) and PowerShares QQQ Trust (NYSEARCA:QQQ) were expected to advance in morning trade as the futures market projected gains in the tech bearing NASDAQ.  However, they won’t be helped by earnigs reports from AMD and Nvidia whose earnings disappointed.

While Apple rocked, Europe continues dealing with its debt woes but Greece hopes to have a deal by the end of the week and European investors will be looking to the World Economic Forum in Davos, Switzerland for future direction of European stock indexes like Vanguard MSCI Europe (NYSEARCA:VGK) which have been under heavy pressure since last May as the Euro Zone crisis wouldn’t go away.

Bottom line: America’s economy seems to be on the mend and doesn’t need Europe to be an anchor.  However, with large chunks of American company revenue and U.S. banking exposure coming from Europe, the news from Davos will be leader for the day.

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