Mid-Day ETF Update: ETFs, Stocks Log Gains As Better-Than-Expected Citi Results, M&A Activity Lifts Sentiment

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

SPDR S&P 500 ( SPY ): +0.58%

Market Vectors Gold Miners ( GDX ): -2.71%


iShares Russell 2000 Index ( IWM ): +0.63%

iShares FTSE/Xinhua China 25 Index ( FXI ): +1.17%

iPath S&P 500 VIX ST Futures ETN ( VXX ): -3.39%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV, were modestly higher at session's half, with actively traded PowerShares QQQ (QQQ) also up 0.75% and reaching a new 13-year high.

U.S. stocks are also higher, with the Dow Jones Industrials Average hitting another record high. With no economic data scheduled for release and speeches from Federal Reserve officials, investors have focused on earnings news, especially as the earnings season is expected to pick up steam starting this week. Market sentiment was buoyed by gains in banking stocks following Citibank's (C) strong Q2 earnings. A number of as M&A activity from the pharmaceutical sector is also providing some lift.

Power Play: Financial

Select Financial Sector SPDRs (XLF) was up 0.68%. Direxion Daily Financial Bull 3X shares (FAS) was up 2.17% while its bearish counterpart, FAZ, was up 2.31%.

Bank of America (BAC) was up 1.53% and JPMorgan Chase (JPM) was up 1.38%, rallying after rival Citigroup (C) posted Q2 adjusted earnings and revenue above analysts' expectations.

Citigroup delivered a beat on both its top and bottom lines for Q2, giving the sector a fresh round of positive momentum even as the big bank said it reached a $7 billion settlement to resolve actual and potential civil claims by the U.S. Department of Justice, several state attorneys general, and the Federal Deposit Insurance Corp. relating to residential mortgage-backed securities and collateralized debt obligations. C shares were up 3.21%.

Winners and Losers

Technology

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) were higher. SPDR S&P International Technology Sector ETF (IPK) was up 0.25%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were in the green.

Riverbed Technology (RVBD) was down 5.55% after it said it now expects non-GAAP revenue for the quarter to be in the range of $264 million to $265 million, compared to the company's previous guidance of $274 million to $280 million. Non-GAAP earnings are expected to be at the low end of the company's previous guidance of $0.26 to $0.28 per diluted share. Analysts polled by Capital IQ are expecting EPS of $0.27 on revenue of $277.58 million.

Energy

Dow Jones U.S. Energy Fund (IYE) was up 1%; Energy Select Sector SPDR (XLE) was up 0.9%.

Whiting Petroleum (WLL) over the weekend said it has signed a definitive agreement to buy energy company Kodiak Oil & Gas (KOG) in an all-stock transaction valued at $6 billion, including Kodiak's net debt of $2.2 billion as of March 31. The merger is expected to create a Bakken/Three Forks producer with over 107,000 barrels of oil equivalent per day of production in Q1 2014, 855,000 combined net acres and an inventory of 3,460 net future drilling locations. As agreed, Kodiak shareholders will receive 0.177 of a share of Whiting stock in exchange for each share of Kodiak common stock they hold, representing consideration to each Kodiak shareholder of $13.90 per share based on the closing price of Whiting common stock on July 11. This represents a premium of approximately 5.1% to the volume weighted average price of Kodiak for the last 60 trading days. KOG was up 5.41% while WLL was up 7.49%, reaching an all-time high of $84.77.

Commodities

Crude was up 0.2%; United States Oil Fund (USO) was up 0.03%. Natural gas was down 0.58% and United States Natural Gas Fund (UNG) was down 0.44%.

Gold was down 2.33%, and silver was down 2.47%. Among rare metal funds, SPDR Gold Trust (GLD) was down 2.42% and iShares Silver Trust (SLV) was up 2.46%.

Consumer

Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were lower.

Bona Film Group (BONA) was up 8.16% after saying its founder and CEO Yu Dong has agreed to buy 21st Century Fox's (FOXA) 19.3% interest in Bona for $71.4 million or $5.90 per American Depository Share and that he will also sell 13.3% of his stake to Fosun Group, for $5.90 per ADR. Fosun will buy 4.17 million shares from Dong, after which Fosun's stake in the company will be 20.7% and Dong's stake will be 32.3%. Bona said an affiliate of 21st Century Fox bought the stake in May 2012. It said the sale back to Dong won't have an impact on five film co-productions between the 21st Century Fox and Bona, including Bride Wars, which began principal photography in June of this year, or on the pipeline. FOXA shares were up 0.17%.

Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were higher. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 0.64%.

Salix Pharmaceuticals (SLXP) and Progenics Pharmaceuticals (PGNX) said the Food and Drug Administration (FDA) has informed Salix that its RELISTOR subcutaneous injection, 20 mg/ml, has been approved on the data submitted in the supplemental NDA (sNDA), for the treatment of opioid-induced constipation (OIC) in patients taking opioids for chronic non-cancer pain.

The FDA has directed Salix to work with and submit certain information to the Division of Gastroenterology and Inborn Errors Products (DGIEP). The requested information includes proposed product labeling and a proposal for one or more post-marketing observational cohort studies designed to assess the relative incidence of Major Adverse Cardiovascular Events (MACE) among chronic non-cancer pain patients initiating RELISTOR via subcutaneous injection for OIC versus a comparator cohort.

PGNX was up 10.38% while SLXP was up 2.88%.



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

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This article appears in: Investing , Commodities

Referenced Stocks: SPY , GDX , IWM , FXI , VXX

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As of 6/29/2015, 04:15 PM

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