Mid-Day ETF Update: ETFs, Stocks Still Lower as Gaza, Flight MH17 Continue to Weigh on Sentiment

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

SPDR S&P 500 ( SPY ): -0.40%

iPath S&P 500 VIX ST Futures ETN ( VXX ): +3.16%


iShares MSCI Emerging Markets Index ( EEM ): -0.05%

iShares Russell 2000 Index ( IWM ): -0.81%

Direxion Daily Small Cap Bear 3X Shares ( TZA ): +2.15%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were weaker in session's half; actively traded PowerShares QQQ (QQQ) was down 0.33%.

U.S. stocks continued to log heavy losses, but were off their worst levels as geopolitical issues weighed on market sentiment. The death toll in Gaza rose to more than 500 as Israel continued its ground offensive. Meanwhile, in the aftermath of the downing of Malaysian Airlines MH17, international outrage mounted following reports that pro-Russian Ukrainian rebels were impeding access to bodies at the crash site. With no economic data on tap for the day, investors will be looking to the earnings reports scheduled for release in Monday's after hours session. Companies reporting include Netflix (NFLX), Texas Instruments (TXN), and Crocs (CROX).

Power Play: 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 lower. SPDR S&P International Technology Sector ETF (IPK) was flat.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.11% while Semiconductor Sector Index Fund (SOXX) was down 0.03%.

Extreme Networks (EXTR) was up nearly 16% after it reported preliminary Q4 revenue is expected in the range of $154 million-$156 million, above prior guidance of $145 million -$150 million, and ahead of the analyst consensus of $145.7 million on Capital IQ. Non-GAAP EPS is seen at $0.06 to $0.08, above its prior view of $0.02 to $0.04 and ahead of estimates of $0.03 per share. GAAP gross margin is expected to be in the range of 52.5% to 53.5% compared to guidance of approximately 50%. Non-GAAP gross margin is expected to be in the range of 56.5% to 57.5% compared to previous guidance of 55%. GAAP operating expenses are expected to be in the range of $95 million to $96.5 million compared to guidance of $89 million to $92 million. Non-GAAP operating expenses are expected to be in the range of $77.5 million to $79 million which is slightly above previous guidance of $76 million to $78 million.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) was down 0.55%. Direxion Daily Financial Bull 3X shares (FAS) was down 1.26% while its bearish counterpart, FAZ, was up 1.22%.

BB&T (BBT) was down 4% after the bank reported a drop in net earnings for Q2 as a result of mortgage and tax-related charges. Revenues were slightly lower compared to last year. Net income available to common shareholders was $425 million, or $0.58 per diluted share, down from $547 million, or $0.77 per diluted share, in the same period last year. After adjustments, diluted EPS was $0.70, short of the Capital IQ consensus of $0.75. Total revenues were $2.3 billion for the quarter, a decrease of $187 million compared to the earlier quarter. The average analyst estimate is for $2.3 billion, based on the Capital IQ survey.

Energy

Dow Jones U.S. Energy Fund (IYE) was down 0.12%; Energy Select Sector SPDR (XLE) was down 0.10%.

NextEra Energy Partners, LP, (NEP) was down 1.39% after it announced that the Bluewater Wind Energy Center in Huron County, Ontario has begun commercial operation. The project is comprised of 37 turbines and capable of generating up to 60-megawatts of electricity, enough to power approximately 15,000 homes in Ontario. The Bluewater Wind Energy Center is owned by Bluewater Wind, LP, an indirect subsidiary of NextEra Energy Canada Partners Holdings, ULC.

Commodities

Crude was up 0.92%; United States Oil Fund (USO) was up 0.50%. Natural gas was down 2.73% and United States Natural Gas Fund (UNG) was down 2.62%.

Gold was up 0.28%, and silver was up 0.47%. Among rare metal funds, SPDR Gold Trust (GLD) was up 0.14% and iShares Silver Trust (SLV) was up 0.42%.

Consumer

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

Six Flags Entertainment (SIX) was down 6.37% after the theme-parks operator reported Q2 sales below analysts' expectations, although earnings were slightly ahead of the Street view. The company's Q2 earnings rose to $66.3 million, or $0.67 per diluted share, from $47.4 million, or $0.47 per share, a year earlier. That is above the $0.64 average estimate from analysts polled by Capital IQ. Sales rose to $376.6 million from $363.7 million, missing the $396 million consensus estimate.

Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were weaker. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 2.42%.

Biolase (BIOL) was up more than 9% after it said it has raised $12 million in a private placement by selling nearly 6.3 million shares of its common stock at $1.92 per share to Jack W. Schuler, Oracle Partners L.P. and other Oracle funds, Birchview Capital and certain BIOLASE directors and officers. In connection with the transaction, BIOLASE agreed to use commercially reasonable efforts to file within 30 days of the closing a registration statement with the Securities and Exchange Commission to register the resale of the shares issued at the closing. Biolase expects the private placement will close around July 22. The proceeds will be used to repay all outstanding indebtedness under Biolase's loan agreement with Comerica Bank and for working capital and general corporate purposes.



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.

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


This article appears in: Investing , Commodities

Referenced Stocks: SPY , VXX , EEM , IWM , TZA

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