Financial & Tech ETFs Rise On Earnings (XLF, XLK, QQQ, IGM)

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Financial Sector ETFs and Tech Sector ETFs rose today on positive earnings reports from major financial sector and tech sector companies

Financial ETFs such as the Financial Select Sector SPDR ETF (NYSEARCA:XLF) and Tech Sector ETFs such as the Technology SPDR ETF (NYSEARCA:XLK), the PowerShares QQQ Trust, Series 1 ETF (NASDAQ:QQQ), the iShares S&P North American Technology Sector Index Fund (NYSEARCA:IGM) all rose today on earnings reports from financial companies like Bank of America (NYSE:BAC) and American Express (NYSE:AXP), and tech companies like Google (NASDAQ:QQQ), Microsoft (NASDAQ:MSFT), and Intel (NASDAQ:INTC).

The Financial Select Sector SPDR ETF (NYSEARCA:XLF) closed ahead .86% on positive earnings reports from Bank of America (NYSE:BAC) and American Express (NYSE:AXP).  Bank of America (NYSE:BAC) reported 11% earnings, while American Express (NYSE:AXP) reported 12% earnings.  These two positive earnings come from a slew of mixed Q4 earnings reports from Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS), and JP Morgan (NYSE:JPM).  Goldman Sachs reported 58% losses last quarter, while JP Morgan reported a 28% decline last quarter.  Regardless, .86% increase in NYSEARCA:XLF likely indicates that investors have confidence in the financial system moving into 2012.

The Tech Sector popped today in anticipation of earnings reports from Google, Microsoft, and Intel, as tech sector ETFs including NYSEARCA:XLK, NASDAQ:QQQ, and NYSEARCA:IGM all registered over half a percent in gains.  NYSEARCA:XLK rose .71%, NASDAQ:QQQ rose .62%, and NYSEARCA:IGM rose .91%.  These gains were quite impressive considering the earnings reports from Google, Microsoft, and Intel were not released until after hours.  Despite all of the anticipation from Google, the internet company missed its alleged 20% profit increase and only reported a 6% profit for fourth quarter.  Intel also reported 6% increased earnings for fourth quarter, and Microsoft reported profit for second quarter of 2011.

Bottom Line: Financial Sector ETFs and Tech Sector ETFs celebrated improved earnings reports from several companies including Bank of America, Google, and Intel.  Both sectors have performed well in past weeks despite a sluggish US economic recovery and potential European recession.  Earnings reports today and in the past week have been mixed however, which suggests that perhaps markets are more driven on hope rather than on supply.

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Disclaimer: Wall Street Sector Selector trades a wide variety of ETFs and positions can change at any time.