Mid-Day ETF Update: Broad Market ETF's Trend Higher, Consumer Sector Weak

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

SPDR S&P 500 ( SPY ): +0.3%, near 52 week highs

iPath S&P VIX Short Term Futures ( VXX ): -1.5%, near year lows


iShares Russell 2000 ( IWM ): +0.6%, near 52 week highs

iShares Emerging Japan Index Fund ( EWJ ) -0.25%, but still near year highs

iShares MSCI Emerging Markets Index ( EEM ): +0.1%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are showing modest gains. Actively traded PowerShares QQQ (QQQ) is up 0.4%, and has hit new year highs.

U.S. stocks are flat to slightly firmer at the midsession after last week's record-breaking run, with no major data releases for focus. The S&P 500 traded above 1,600 for the first time last week, while the Dow briefly surpassed 15,000 on May 3. Among earnings released Monday, Tyson Foods (TSN) reported a steep drop in its second-quarter earnings, hurt as customers switched to chicken from beef to save money, sending the stock down 4.5%.

Winners and Losers

Financial -

Select Financial Sector SPDRs (XLF) is up 1% to year highs. Direxion Daily Financial Bull 3X shares (FAS) is up 2.4%, hitting a new year high of $61.59. Its bearish counterpart, FAZ, is down 2.35%, posting a fresh year low.

Among financial stocks, Swiss Bank UBS (UBS) is now slightly higher, recovering from an early slide but also off late morning highs, after Assured Guaranty (AGO) announced it had reached a settlement with UBS resolving its claims over residential mortgage-backed securities transactions that were issued, underwritten or sponsored by UBS and insured by Assured Guaranty under financial guaranty insurance policies. Under the settlement, Assured will get an initial cash payment of $358 million. UBS will also reimburse Assured Guaranty for a part of all future losses on certain transactions under a collateralized loss-sharing reinsurance agreement to be put in place by the third quarter of 2013. The company said the settlement resolved all RMBS claims that the company has asserted against UBS, including those that have been in litigation.

Technology -

Tech ETFs Technology Select Sector SPDR ETF (XLK) is up 0.4% and nearer year highs, iShares Dow Jones US Technology ETF (IYW) gained 0.6%, iShares S&P North American Technology ETF (IGM) has risen 1.5% to year highs and iShares S&P North American Technology-Software Index (IGV) has risen 0.3%.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) is up 1.4%, hitting a year high of $51.64 and Semiconductor Sector Index Fund (SOXX) is 1% higher and has hit fresh year highs. SPDR S&P International Technology Sector ETF (IPK) is flat.

In sector news, Google (GOOG) is up more than 1% and hit a 52-week high of $858.62 following a CNN report that the company is poised to unveil a channel subscription service for some of YouTube's specialty videos. The service would apply to about 50 channels and charge viewers as little as $1.99 per month.

Energy -

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) are both about 0.6% higher and both have hit fresh 52 week highs.

In sector news, Energy XXI (EXXI) is up more than 3% after saying it will boost its dividend by 71% to $0.12 a share and directors authorized a share buyback program of up to $250 million worth of common stock. The news outweighed disappointing Q3 earnings of $0.46 per share, ex one-time items, versus the Capital IQ consensus of $0.48. Revenues were $303.8 million, versus the analyst estimate of $314.29 million. Production for the quarter averaged 43,500 BOE/d net, compared with 45,300 BOE/d net in the same quarter last year. Oil volumes averaged 28,600 barrels per day net.

Commodities -

June crude is up 0.39%; July natural gas is down 0.93%. United States Oil Fund (USO) is up 0.6%. United States Natural Gas Fund (UNG) is down 1.3%.

June gold is flat and silver for July delivery is down 0.64%. Among rare metal funds, SPDR Gold Trust (GLD) is down 0.1%; iShares Silver Trust (SLV) is down 0.6%.

Healthcare -

Healthcare ETFs Health Care SPDR (XLV) and Vanguard Health Care ETF (VHT) are leaning lower, while iShares Dow Jones US Healthcare (IYH) is flat. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is also slightly lower.

In corporate news, Sagent Pharmaceuticals (SGNT) announced an agreement to acquire the 50% interest of its joint venture partner, Chengdu Kanghong Pharmaceuticals, in the Kanghong Sagent Pharmaceutical Corporation Limited joint venture, for $25 million. The deal is payable in installments through September 2015. Upon completion of the acquisition, KSCP will become a wholly-owned subsidiary of Sagent. The shares are up more nearly 2%.

Consumer -

Consumer ETFs Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) are all weaker.

In sector news, Tyson Foods (TSN) is down 4.5% after it posted Q1 adjusted EPS was $0.36 compared to $0.44 last year, which it said was disappointing but said it still thought full year earnings would better last year's. That performance missed the Cap IQ consensus of $0.45. Q1 net income came in at $95 million, down from $166 million last year.



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: EEM , EWJ , IWM , SPY , VXX

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As of 12/17/2014, 04:15 PM


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