Referenced Stocks

Mid-Day ETF Update: ETFs Join Stocks in Broad Market Rally on New ECB Bond Buying Plan, Upbeat U.S. Labor Data

By Midnight Trader September 06, 2012, 12:50:31 PM EDT

Active broad-market exchange-traded funds at mid-day:

SPDR S&P 500 ( SPY ): +1.94%, hit new year highs.

iPath S&P 500 VIX Short Term Futures TM ( VXX ): -7.1%, tumbles to new year low.

PowerShares QQQ Trust, Series 1 ( QQQ ): +2.1%, reaching a new year high.

iShares MSCI Emerging Markets Index ( EEM ): +2.19%

iShares Russell 2000 Index ( IWM ): +2.12%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are firmer. Actively traded PowerShares QQQ ( QQQ ) is up 2.1% and has hit a new year high. ETFs in healthcare and retail are also logging new 52-week highs.

U.S. stocks continue to rally, cheered by ECB President Mario Draghi's announcement that the ECB will buy government bonds in unlimited quantities, as part of its "outright monetary transaction" plan to combat the distortions in financial markets created by fears of a possible EU breakup. Sentiment was further bolstered by upbeat data from the Labor Department, which reported that last week jobless claims declined the most in a month, and from ADP, which reported August private sector payrolls rose by 201,000.

Winners and Losers

Financial -

Select Financial Sector SPDRs (XLF) is up 2.3%. Direxion Daily Financial Bull 3X shares (FAS) is up 6%. Its bearish counterpart, FAZ, is down 6%, sinking to a new year low.

Among financial news, Realty Income Corporation (O) and American Realty Capital Trust (ARCT) have signed a definitive agreement under which Realty Income will acquire all of the outstanding shares of ARCT in a transaction valued at approximately $2.95 billion. The transaction is expected to close during the fourth quarter of 2012 or early in the first quarter of 2013.

ARCT has reached a new year high; O has turned negative after earlier hitting a new 52-week high of $44.22.

Technology -

Tech ETFs are firmer: Technology Select Sector SPDR ETF (XLK), up 2%, touching a new year high of $31.09; iShares Dow Jones US Technology ETF (IYW), up 2.18%; iShares S&P North American Technology ETF (IGM), up 2.26%, and iShares S&P North American Technology-Software Index (IGV), up 3%.

Among Semiconductor ETFs, SPDR S&P Semiconductor (XSD) is up 4.63% while and Semiconductor Sector Index Fund (SOXX) is up 3.3%.

SPDR S&P International Technology Sector ETF (IPK) is slightly higher.

In sector news, OCZ Technology Group (OCZ) is down 20%, sinking to a new year low of 3.90, after it announced late Wednesday that it expects preliminary revenue for the second fiscal quarter of 2013 to be approximately $110 - $120 million, compared to the previously guided revenue range of $130 - $140 million. The Capital IQ analyst consensus estimate anticipated revenue of $134.35 million for the period.

Energy -

Dow Jones U.S. Energy Fund (IYE) is up 2.7%; Energy Select Sector SPDR (XLE) is up 2.7%.

In sector news, BreitBurn Energy Partners (BBEP) is down 4% after the company said it has priced its public offering of 10 million common units representing limited partner interests at a price to the public of $18.51 per unit.

Commodities -

Crude was up 1.44%; natural gas was up 1.19%. United States Oil Fund (USO) is up 1.2%. United States Natural Gas Fund (UNG) is also up 1.2%.

Gold and silver for December delivery were higher, up 0.7% and 0.93% respectively. Among rare metal funds, SPDR Gold Trust (GLD) is up 0.55% while iShares Silver Trust (SLV) is up 1.25%.

Healthcare -

Healthcare ETFs are firmer in mid-day action, breaking into new year high territory: Health Care SPDR (XLV), up 1.5%, touching new year high of $39.56; Vanguard Health Care ETF (VHT), up 1.5% with a new year high of $71.95; and iShares Dow Jones US Healthcare (IYH), up 1.6% and a new year high of $83.35. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is also higher, up 2.1% and touched a new 52-week range of $141.08.

In corporate news, Warner Chilcott (WCRX) is down 10% and hit a new 52-week low of $12.62 after it announced today the pricing of an underwritten public secondary offering of 42,864,843 of its ordinary shares by certain selling shareholders.

Power Play -

Consumer -

Consumer ETFs Consumer Staples Select Sector SPDR (XLP), up 1% but off the new year high of $36.02; iShares Dow Jones US Consumer Goods (IYK), up 1.5% after hitting a new 52-week high of $75.25; and Vanguard Consumer Staples ETF (VDC), up 1.1% after reaching a new 52-week high of $91.42.

Retail ETFs are higher: SPDR S&P Retail (XRT), up 2%, touching a new year high of $63.22; PowerShares Dynamic Retail (PMR), up 1.5%; and Market Vectors Retail ETF (RTH), up 1.3% and hit new year highs.

In sector news, Men's Wearhouse (MW) is up 14% after the company late yesterday reported Q2 EPS of $1.15, vs. the analyst consensus of $1.12 per share on Capital IQ. Sales were $662.3 mln, vs. expectations of $662.7 mln. For Q3, the company expects GAAP EPS of $0.95 to $0.98 per share. The Street view is $0.97 per share. For Q4, GAAP EPS is seen in the range of $0.12 to $0.15 per share. The Street is at $0.10 per share.




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.


This article appears in: Investing, Commodities

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



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