Referenced Stocks

Mid-Day ETF Update: ETFs Mixed, Stocks Edging Lower As Market Awaits Fed For Any News or Talk of Stimulus

By Midnight Trader September 10, 2012, 01:37:57 PM EDT

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

SPDR S&P 500 ( SPY ): -0.06%, hit new year highs.

iPath S&P 500 VIX Short Term Futures TM ( VXX ): -0.4%, hit new year low.

iShares MSCI Emerging Markets Index ( EEM ): -0.64%

Financial Select Sector SPDR ( XLF ): -0.06%

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.6%, near year high.

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are mixed to weaker. Actively traded PowerShares QQQ ( QQQ ) is down 0.6% and moving away from near its 52-week high.

U.S. stocks are edging lower as investors continue to cast a wary eye on the Federal Open Market Committee, which will meet this week. Investors and traders are waiting for any signal that a third round of quantitative easing could be implemented. Earlier, lackluster economic data, mostly out of China and Japan, dampened investment sentiment. Back in the U.S., July Consumer Credit data is on tap for a 3 pm, ET release today.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) is off 0.1%. Direxion Daily Financial Bull 3X shares (FAS) is down 0.41%. Its bearish counterpart, FAZ, is up 0.33% having hit a new year low earlier.

Among financial actives, American International Group, Inc. (AIG) is down 1% after the U.S. Department of the Treasury launched an offering of $18 billion of its AIG common stock, par value $2.50 per share. The Treasury will also grant a 30-day option to the underwriters for the offering to purchase up to an additional $2.7 billion of AIG Common Stock to cover over-allotments, if any. AIG says it intends to purchase up to $5 billion of AIG Common Stock in the offering. Following the sale of the stock, the Treasury will hold a stake of around 23% in AIG. According to SeekingAlpha, with the Treasury no longer holding a majority stake, AIG will now come under the regulatory purview of the Fed by dint of its ownership of a small bank.

Technology -

Tech ETFs, Technology Select Sector SPDR ETF (XLK), down 0.3% from near year highs; iShares Dow Jones US Technology ETF (IYW), down 0.55%; iShares S&P North American Technology ETF (IGM), down 0.33%; and iShares S&P North American Technology-Software Index (IGV), turns positive and now up 0.02%.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) down 0.19%; and Semiconductor Sector Index Fund (SOXX) down 1%. SPDR S&P International Technology Sector ETF (IPK) is flat.

In sector news, Amazon.com, (AMZN) is now edging lower, down 0.46%, after hitting a new 52-week high of $260. Reports over the weekend said that AMZN will be offering users of its new Kindle Fire tablet the option to go ad free for an extra fee of $15. The new fees are a departure from its previous pricing policies. AMZN launched its new tablet on Thursday, with a price range of $159 to $599.

Commodities -

Crude was down 0.5% while natural gas is up 1.13%. United States Oil Fund (USO) is down 0.31%. United States Natural Gas Fund (UNG) is up 1.16%.

Gold and silver for December delivery were lower, down 0.4% and 0.06%, respectively. Among rare metal funds, SPDR Gold Trust (GLD) is down 0.44%; iShares Silver Trust (SLV) is down 0.34%.

Healthcare -

Healthcare ETFs are mostly lower but still near year highs: Health Care SPDR (XLV), down 0.11%; Vanguard Health Care ETF (VHT), down 0.08%; and iShares Dow Jones US Healthcare (IYH), up 0.01%. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is down 0.62%.

In corporate news, Nordion (NDZ) is down 36% at around $6.78, after reaching a new 52-week low of $5.51 earlier. The company earlier announced that its claim for specific performance or monetary damages in an arbitration against Atomic Energy of Canada Limited was unsuccessful. The company also said that because of this and uncertainties due to several factors, it has decided to suspend the payment of its quarterly dividend and cease repurchasing shares under its current normal course issuer bid. NDZ's arbitration against Atomic Energy related to the cancelled construction of the MAPLE facilities, the nuclear reactors and processing facility being constructed by Atomic Energy, which would have served as the source of NDZ's long-term medical isotope supply.

Retail -

Retail ETFs are firmer: SPDR S&P Retail (XRT), up 0.17%, hittng a new year high of $63.75; PowerShares Dynamic Retail (PMR), up 0.59%; and Market Vectors Retail ETF (RTH) up 0.4%, with a new 52-week high of $44.96.

Industrial -

Industrial ETFs are mostly lower: Vanguard Industrials (VIS), down 0.06%; iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ), down 0.2%; and Select Sector SPDR-Industrial (XLI), down 0.27%.

Power Play -

Solar Energy -

ETFs and stocks in the space are continue to gap higher following a report by the the Solar Energy Industries Association that stated the U.S. will install at least 2,500 megawatts, this year, and added about 742 megawatts of solar capacity in the second quarter, according to Wall Street Journal.

WSJ, however, also pointed out that the growth and expansion of solar power businesses in the U.S., was fueled by companies that use foreign-made solar panels, particularly those made in China, which have begun to drop prices in recent years, making solar power more competitive.

Among gainers, ADR solar stocks are at the top: ReneSola (SOL), up 2.92%; Suntech Power Holdings (STP), up 4.33; Trina Solar Limited (TSL), up 2.74%; JA Solar Holdings (JASO), up 3.14%; and Yingli Green Energy Holdings (YGE), up 4.79%.

Solar ETFs Claymore/MAC Global Solar Index (TAN) and Market Vectors Solar Energy (KWT) are also firmer, up 2.44% and 2.76%, respectively.




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, QQQ, SPY, VXX, XLF



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