Mid-Day ETF Update: ETFs, Futures Continue to Fizzle on Disappointing ADP Report, Mixed Economic Data

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

SPDR S&P 500 ( SPY ): -1.25%

iShares MSCI Japan Index Fund ( EWJ ): -3.49%


Select Financial Sector SPDR ( XLF ): -1.52%

iShares MSCI Emerging Markets Index ( EEM ): +1.56%

iPath S&P 500 VIX Short Term Futures ( VXX ) +4.03%

Broad Market Indicators

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, continued to be weaker. Actively traded PowerShares QQQ (QQQ) was down 1.21%.

U.S. stocks were firmly in the negative territory following ADP's report that the economy gained 135,000 jobs in the private-sector in May, missing estimates. Also weighing on market sentiment was the Q1 productivity, which was revised up 0.5%, in line with forecasts, and Q1 labor costs, which was revised down 4.3%, versus the consensus of an increase of 0.6%. Factory orders for April rose 1%, less than expectations, while ISM services data for May topped estimates with a reading of 53.7. Petroleum inventories helped crude to log gains, with ETFs in the commodities sector outperforming the broader market.

Winners and Losers

Technology -

Technology Select Sector SPDR ETF (XLK) was down 0.63, and other tech ETFs 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) are also lower.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD), was down 1.57% and Semiconductor Sector Index Fund (SOXX) was down 1.31%.

SPDR S&P International Technology Sector ETF (IPK) was down 1.02%.

In sector news, Apple (AAPL) was down 0.84% following the U.S. International Trade Commission's ruling that certain older models of Apple's devices have infringed on Samsung's patented technology.

Energy -

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) were weaker, down 0.65% and 0.72%, respectively.

In sector news, Harvest Natural Resources (HNR) was up 26.79% after reporting that it swung back to profit in Q1, versus the year ago period. Revenues, however, declined year-over-year.

Consumer -

Consumer Staples Select Sector SPDR (XLP) was down 0.89%; other consumer ETFs iShares Dow Jones US Consumer Goods (IYK) and Vanguard Consumer Staples ETF (VDC) were also seeing weakness.

In sector news, Mattress Firm (MFRM) was up 7.41%, with a new 52-week high of $41.20 after it reported Q1 EPS and revenues above Street estimates. The company also issued FY14 guidance in line with forecasts.

Healthcare -

Health Care SPDR (XLV) was down 1.27%; other healthcare ETFs Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) continued to slip into negative territory. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was down 2.47%.

In corporate news, Avanir Pharmaceuticals (AVNR) was up 8.55% after it said the FDA agreed to an expedited development pathway for their next-generation compound, AVP-786, requiring only a limited pre-clinical package as part of the Investigational new drug application. Upon completion of these preclinical studies the company intends to proceed directly into human clinical trials.

Commodities -

Crude continued to edge higher but have pared down gains following weekly petroleum data. U.S. commercial crude oil inventories decreased by 6.3 million barrels from the previous week, versus the Briefing.com consensus of a draw of 0.4 million - 0.8 million. Gasoline inventories had a draw of 0.366 million barrels, versus the forecasts for a build of 0.5 million - 1 million barrels; and distillate inventories had a build of 2.611 million barrels, versus the consensus of a build of 1.3 million barrels.

Crude was up 0.34%; natural gas was up 0.4%. United States Oil Fund (USO) was up 0.33%. United States Natural Gas Fund (UNG) was up 0.28%.

Gold was up 0.42% and silver was up 0.52%. Among rare metal funds, SPDR Gold Trust (GLD) was up 0.33%; iShares Silver Trust (SLV) was up 0.28%.

Power Play -

Financial -

ETFs and stocks in the financial sector were showing weakness following the disappointing private-sectors jobs report that failed to meet expectations.

Select Financial Sector SPDRs ( XLF ) was down 1.52%. Direxion Daily Financial Bull 3X shares (FAS) was down 4.08%. Its bearish counterpart, FAZ, was up 4.01%.

Among financial stocks, U.S. Bancorp (USB) was down 0.7% after the Commodity Futures Trading Commission filed suit against the bank, accusing it of unlawfully holding customer funds from Peregrine Financial Group, the futures brokerage that collapsed in July 2012.



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 , SPY , VXX , XLF

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As of 12/19/2014, 04:15 PM


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