We should be in for another action-packed busy earnings week which will impact ETFs from across many areas of the market. This weekend’s bank stress tests out of Europe will get things kick-started on Monday. It appeared most financial institutions in Europe were said to have passed their tests, so the buying we saw in financial institutions of Friday could carry over to the start of the week.
Look for plenty of action with internet-focused ETFs as the travel niche will see results coming from The Priceline Group Inc. (NASDAQ:PCLN) and TripAdvisor Inc. (NASDAQ:TRIP). Each quarter we see a usual amount of speculation TRIP could be a buyout target for PCLN, but nothing has materialized yet. We certainly would not be shocked by such an announcement.
Tesla Motors inc. (NASDAQ:TSLA) is also due to report this week, with analysts expecting an EPS loss from the company. Wall Street continues to buy into CEO Elon Musk’s vision for what is shaping up more and more to be an electric energy-focused company than simply an electric car manufacturer. The potential merger deal with Solar City Corporation (NASDAQ:SCTY) has certainly brought that vision to life for investors who are bullish that Mr. Musk is going to be able to pull it off — even if that means losses for many quarters out.
Shares of Tesla are down 2% year-to-date, which is decent consolidation following gains of 344% in 2013, 48% in 2014, and 8% in 2015.
Shares of Priceline are up 5.95% year-to-date as investors look for the stock to potentially break out to new all-time highs following 12% gains in 2015, preceded by a 2% loss in 2014.
These two popular tech plays will have big ramifications regarding how market index ETFs move, and particular influence within ETFs that are heavily weighted toward these stocks.