Earnings Around The Markets Boost Energy, Food ETFs

Glug, glug, glug. That’s the sound of Pepsi’s second-quarter profit rising, which has bubbled up the food and beverage exchange traded fund (ETF).

PepsiCo (PEP) reported a 9% jump in profits in the most recent quarter, thanks to strong international sales and a weak U.S. dollar, reports Vinnee Tong for the Associated Press. The company is 4.6% of PowerShares Dynamic Food & Beverage (PBJ), which is down 5.7% year-to-date. Pepsi isn’t just a purveyor of beverages: the company also has a robust snacking business, including Cheetos, Ruffles and SunChips.

McDonald’s (MCD), which is 5.2% of PBJ, also reported higher profits because of strong international sales. Low-priced menu items also became more attractive to customers who are strapped for cash.

Other ETFs that could be affected include:

• Consumer Staples Select Sector SPDR (XLP): down 5.2% year-to-date; Pepsi is 4.3%
• PowerShares Dynamic Leisure & Entertainment (PEJ): down 20% year-to-date; McDonald’s is 5.4%

There’s no shock here, but ConocoPhillips (COP) reported that its second-quarter profits soared, thanks to the price of oil and gas, reports John Porretto for the Associated Press. Revenue last year was $47.4 billion. This year, it shot up 50.6% to $71.4 billion.

Oil prices are continuing to trade lower today, to $127.44 by early afternoon, reports Adam Schreck for the Associated Press. Gas prices are dropping, too, with the national average now at $4.042 a gallon.

Conoco is a major holding in:

• Energy Select Sector SPDR (XLE): down 3.1% year-to-date; Conoco is 8.4%
• Vanguard Energy (VDE): up 0.2% year-to-date; Conoco is 7.4%

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