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Mid-Day ETF Update: ETFs Lower, Stocks Extend Losses As Global Growth Concerns Persist

By Midnight Trader September 24, 2012, 01:36:50 PM EDT

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

SPDR S&P 500 ( SPY ): -0.39%

iShares Russell 2000 Index ( IWM ): -0.68%

Financial Select Sector SPDR ( XLF ): FLAT

iPath S&P 500 VIX Short Term Futures TM ( VXX ): -0.58%, near year lows.

iShares MSCI Emerging Markets Index ( EEM ): -0.41%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, continue to be weaker. Actively traded PowerShares QQQ (QQQ) is down 0.88%, but still within around a $1 of year highs.

U.S. stocks continue to slip lower as concerns over global growth have continued to gain traction, underscored by dwindling optimism among Chinese manufacturers and retailers. In Europe, Greece denied that it had a larger-than-expected budget shortfall, while Germany and France, after a meeting over the weekend, have reached an impasse regarding the timing of a banking union. Back home, investors are looking ahead to the quarterly earnings season, but are particularly wary of corporate warnings from companies that may miss their targets.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) has turned negative. Direxion Daily Financial Bull 3X shares (FAS) also has turned negative. Its bearish counterpart, FAZ, in contrast has turned positive.

Among financial stocks, Arthur J. Gallagher & Co. (AJG) is off 0.3% after it earlier announced the acquisition of Acumus Limited in Chelmsford, England. Terms of the transaction were not disclosed. Acumus Limited is a retail insurance broker that provides risk consulting and insurance services exclusively for the U.K. housing association sector.

Technology -

Tech ETFs are lower: Technology Select Sector SPDR ETF (XLK), down 0.75%; iShares Dow Jones US Technology ETF (IYW), down 1.1%; iShares S&P North American Technology ETF (IGM), now down 0.9%; and iShares S&P North American Technology-Software Index (IGV), down 1.1%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) is down 1.5% and Semiconductor Sector Index Fund (SOXX) is down 1.8%.

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

In sector news, Apple (AAPL) is down 2% after it reported that it has sold over five million of its new iPhone 5, just three days after its launch on September 21, and more than 100 million iOS devices have been updated with iOS 6, the company's operating system. This was below expectations in the range of 6 - 10 million. Supply constraints are playing a role in the lower-than-hoped-for sales numbers.

Commodities -

Crude was down 1.63%; natural gas was down 0.68%. United States Oil Fund (USO) is down 1.85%. United States Natural Gas Fund (UNG) is down 0.6%.

Gold for December delivery was down 0.7%; while silver was down 1.74%. Among rare metal funds, SPDR Gold Trust (GLD) is down 0.7%; iShares Silver Trust (SLV) is down 1.9%.

Healthcare -

Healthcare ETFs are mixed but at the top end of their annual trading range: Health Care SPDR (XLV), up 0.1% and near year highs; Vanguard Health Care ETF (VHT), down 0.1% from near year highs; and iShares Dow Jones US Healthcare (IYH), down 0.1%, also from near 52 week highs. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is down 1.2%.

In corporate news, Peregrine Pharmaceuticals (PPHM) is down 76.6%, trimming earlier losses of some 83%. The company reported it discovered major discrepancies between some patient sample test results and patient treatment code assignments. Due to the double-blind nature of the trial, Peregrine was not permitted to have access to either patient group assignments or related product coding information. As part of the trial's execution, Peregrine contracted with independent third-party contractors to execute treatment group assignments and oversee clinical trial material coding and distribution according to established procedures. A subsequent review of information has determined that the source of these discrepancies appear to have been associated with the independent third-party contracted to code and distribute investigational drug product. This discrepancy is specific to this trial and will have no impact on other ongoing bavituximab trials.

Consumer -

Consumer Staples Select Sector SPDR (XLP) is up 0.1% and edging closer to year highs while other consumer ETFs are lower: iShares Dow Jones US Consumer Goods (IYK), down 0.26%; and Vanguard Consumer Staples ETF (VDC) down 0.01%.

Retail ETFs are lower: SPDR S&P Retail (XRT), down 0.8%; PowerShares Dynamic Retail (PMR), off 0.8%; and Market Vectors Retail ETF (RTH), down 0.2% but above a day low $44.88, having earlier hit a new year high $45.05.

Power Play -

Industrial -

Most industrial ETF are slipping into negative territory, unable to extend earlier gains: iShares Vanguard Industrials (VIS), down 0.5%; and iShares Dow Jones U.S. Industrial Sector Index Fund (IYJ), down 0.3%. Select Sector SPDR-Industrial (XLI) is up 0.1%.

Among ETFs which maintain significant exposure to LEN - which is down 3% after earlier hitting year highs - Dow Jones U.S. Home Construction Index Fund (ITB), is down 20%, having earlier reached a new year high of $20.79. Meanwhile, SPDR KBW Mortgage Finance ETF (KME) and S&P Equal Weight Consumer Discretionary (RCD) are both flat.




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, SPY, VXX, XLF



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