Mid-Day ETF Update: ETFs, Stocks Higher; Dow Tops 17,000 as Markets Cheer Upbeat June Jobs Data

By MidnightTrader.com Staff,

Shutterstock photo

Active broad-market exchange-traded funds in Thursday's regular session:

SPDR S&P 500 ( SPY ): +0.43%

iShares MSCI Emerging Markets Index ( EEM ): +0.39%

Select Financial Sector SPDRs ( XLF ): 0.74%

Market Vectors Gold Miners ( GDX ): -0.76%

iShares MSCI Japan ETF ( EWJ ): -0.45%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were firmer, with some touching record or multi-year highs. Likewise, actively traded PowerShares QQQ (QQQ) was up 0.55%, with a new 13-year high.

U.S. stocks were holding on to their gains at session's half and set to end the shortened week with a gain; the Dow Jones Industrial Average surpassed 17,000 for the first time and the S&P 500 hit an intraday record. Market sentiment brightened as upbeat jobs data for June outshone other mixed economic data released Thursday. The U.S. economy generated 288,000 jobs - the largest gain since 1999; unemployment rate, meanwhile, fell to 6.1% from 6.3% - the lowest rate since September 2008. Meanwhile, weekly jobless claims rose to 315,000, which was more than expected, and continuing claims increased by 11,000 to a seasonally adjusted 2.58 million in the week. Finally, the Institute for Supply Management services index dipped slipped down to 56% in June from 56.3% in May - a slight slowdown, but at above 50%, it still indicated expansion.

Power Play: Financial

Select Financial Sector SPDRs ( XLF ) was up 0.74%, hitting a new five-year high. Direxion Daily Financial Bull 3X shares (FAS) was up 1.64% to an all-time high. Its bearish counterpart, FAZ, was down 1.66% to a record low.

Among sector news, Sun Bancorp (SNBC) shares climbed 5.62% to a three-year high after the bank-holding company unveiled a series of changes it said were designed to improve performance in its credit, operational and profitability metrics, including the formal hiring of Thomas M. O'Brien as president and CEO, the sale of some branches and the exit of several lines of business, the reduction of 38% of its workforce, and a one-for-five reverse-stock split.

The company will cease the operations of Sun Home Loans, the bank's retail-mortgage banking platform. Sun Home Loans will stop accepting new applications effective immediately. All current commitments for approved loans will be honored and funded according to their terms. The company also will exit the Healthcare and the Asset-Based Lending markets it entered in 2009 and close its syndicated lending desk, and expects those moves to result in annual cost savings of approximately $1.4 million.

The moves are expected to result in a cut of 38% of the company's work force, affecting 242 full-time employees after completion of the restructuring plan, which is expected to generate an annual cost savings of approximately $16.8 million.

Winners and Losers


Technology Select Sector SPDR ETF (XLK), iShares Dow Jones US Technology ETF (IYW), iShares S&P North American Technology ETF (IGM) and iShares S&P North American Technology-Software Index (IGV) climbed higher, and hit or were near record and multi-year highs. SPDR S&P International Technology Sector ETF (IPK) was flat, but earlier hit a record high as well.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were firmer and set new all-time highs.

In corporate news, Synnex (SNX) was down 5.82% after it reported Q2 revenue of $3.45 billion, well ahead of the analyst consensus of $3.17 billion on Capital IQ. Earnings were $1.52, vs. expectations of $1.37 per share. For Q3, the company expects revenue in the range of $3.3 to $3.4 billion and EPS of $1.45 to $1.50, vs. the Street consensus of $3.28 billion in revenue and earnings of $1.53 per share.


Dow Jones U.S. Energy Fund (IYE) was up 0.21% while Energy Select Sector SPDR (XLE) was up 0.15%.

In sector news, Golar LNG (GLNG) was up 2.75%, hitting a record high after it has been upgraded to a hold rating from a strong sell by analysts at Nordea Equity Research. The firm more than doubled its price target on the stock to $63 from $31 a share.

The owner and operator of liquefied natural gas carriers also said late Wednesday that it executed and made effective key agreements for conversion of the 125,000 m3 LNG carrier Hilli to a floating liquefaction vessel. The primary contract for the FLNGV was entered into with Singapore's Keppel Shipyard Limited. Keppel has simultaneously entered into a sub-contract with global engineering, procurement and construction company Black & Veatch who will provide its licensed PRICO(R) technology, perform detailed engineering and process design, specify and procure topside equipment, and provide commissioning support for the FLNGV topsides and liquefaction process.

The FLNGV conversion contract is a key step towards full implementation of Golar's floating LNG production strategy.


Crude was down 0.71%; United States Oil Fund (USO) was down 0.42%. Natural gas was up 0.14% and United States Natural Gas Fund (UNG) was up 0.08%.

Gold was down 0.92% and silver was down 0.76%. Among rare metal funds, SPDR Gold Trust (GLD) was down 0.57% and iShares Silver Trust (SLV) was down 0.09%.


Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were in positive territory, near multi-year highs.

Among stocks, Rite Aid (RAD) was up 5% after the drugstore chain reported a 3.9% increase in same-store sales for the four weeks ended June 28 from the prior-year period. The company said its June front-end same-store sales increased 0.9%. Pharmacy same-store sales, which included a negative impact of about 169 basis points from new generic introductions, increased 5.4%. The prescription count at comparable stores increased 3.5% over the prior-year period. Total drugstore sales for the four-week period increased 3.5% to $2 billion. Prescription sales accounted for 68.4% of drugstore sales, and third-party prescription sales represented 97.5% of pharmacy sales.

Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were higher, touching record highs. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 0.35%.

In corporate news, iKang Healthcare Group (KANG) was up 6.29% and reached an all-time high after announcing late Wednesday that it has completed its acquisition of Shanghai Huajian Clinic gaining three medical centers in China providing healthcare services to the mid-to-high end market in Shanghai. iKang first acquired a 33% equity in Huajian in January 2014, which has been disclosed in iKang's prospectus for its initial public offering, and subsequently acquired the remaining 67% equity in Huajian. Financial terms weren't disclosed.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: SPY , EEM , XLF , GDX , EWJ

More from MT Newswires


MT Newswires

MT Newswires

Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com