Telecom ETFs Jump on AT&T Numbers

AT&T (T) reported that its quarterly earnings increased 34% from last year thanks, in part, to the new Apple (AAPL) iPhone 3G. Wellpoint (WLP) and UnitedHealth (UNH), two bellwethers of the health-care provider set, announced quarterly earnings per share of $1.44 and 67 cents, respectively. Those numbers were down from last year but ahead of analyst estimates. Fannie Mae (FNM) and Freddie Mac (FRE) gained ground after Congress appeared to have hammered out an agreement to help out the two beleaguered mortgage companies. Pulling back were Boeing (BA), which said its net income for the quarter dropped 19%, and Costco (COST), which lowered its guidance, citing high energy costs.

Meanwhile, oil continued its slide. Crude fell on government reports that showed weekly inventory levels decreased but not by as much as expected. That's a strong signal cash-strapped consumers are cutting back on driving. As energy prices cooled off and the dollar strengthened investors sold off traditional inflation hedges like gold and precious metals. Oil closed down $4 a barrel to $124. Gold finished down $29, to $919 an ounce.

The Dow Jones Industrial Average gained 30 points to close at 11,632.

AT&T's rosy numbers helped push the shares of Vanguard Telecommunication Services fund (VOX) up 2.8%. This fund has a 20% weighting in that company. However, the one-day jump isn't indicative of the year this fund is having. It's down 19.8% year to date.

Economic Data
Initial Jobless Claims (8:30 a.m.), Existing Home Sales (10 a.m.), Business Barometer (10 a.m.)