Referenced Stocks

Mid-Day ETF Update: ETFs Mixed, Stocks Firmer on Upbeat Housing Data, Japan Stimulus Move; Oil Inventories Data Caps Gains

By Midnight Trader September 19, 2012, 01:31:24 PM EDT

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

SPDR S&P 500 ( SPY ): +0.2%

iShares MSCI Emerging Markets Index ( EEM ): -0.19%

iPath S&P 500 VIX Short Term Futures TM ( VXX ): -1.13%, near year lows

Financial Select Sector SPDR ( XLF ): +0.19%, near year highs

iShares Russell 2000 Index ( IWM ): -0.05%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are mixed. Actively traded PowerShares QQQ (QQQ) is up 0.21% and has hit new year highs. Homebuilder ETFs are logging gains while oil-related ETFs are slipping into negative territory.

U.S. stocks are gaining steam, lifted by the report that in August, existing home sales rose 7.8%, better than economists' forecasts. An earlier report also saw an increase in construction on new U.S. homes, but this was below expectations. Also lending support is the stimulus step taken by the Bank of Japan, which increased the size of its asset purchases. Keeping the modest rally in check is weakness in the energy sector, with ETFs and stocks joining oil prices down following the weekly oil inventory data.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) is up 0.16%, near year highs. Direxion Daily Financial Bull 3X shares (FAS) is up 0.72%. Its bearish counterpart, FAZ, is down 0.7%.

Among financial actives, Vivint and Blackstone (BX) today announced a definitive agreement under which a fund managed by Blackstone on behalf of its private equity investors will acquire Vivint from its existing shareholders, including Goldman Sachs, Peterson Partners, Jupiter Partners and other minority shareholders for in excess of $2 billion. BX shares have turned negative.

Energy -

Energy ETFs are weaker following the oil inventories report, which showed a sharp inventories increase for last week. Dow Jones U.S. Energy Fund (IYE) is off 0.74%; Energy Select Sector SPDR (XLE) is down 0.92%.

In sector news, PDC Energy, Inc. (PDCE) is down 6.5% after it said it will develop its Utica Shale position in southeast Ohio independently and is no longer seeking a joint venture partner.

Commodities -

Crude oil futures are weaker following the Energy Information Administration's report that oil supplies increased more than expected. Crude was down 2.64%, while United States Oil Fund (USO) is down 4.4%. Natural gas, bucked the downward trend, and was up 0.47%. United States Natural Gas Fund (UNG) is up 0.26%.

Gold was up 0.07% while silver was down 0.33%. Among rare metal funds, SPDR Gold Trust (GLD) is down 0.08% while iShares Silver Trust (SLV) is down 0.59%.

Healthcare -

Healthcare ETFs are in positive territory: Health Care SPDR (XLV), up 0.35%, hitting a new year high; Vanguard Health Care ETF (VHT), up 0.325%, also with a new year high; iShares Dow Jones US Healthcare (IYH) is up 0.33%, striking a new 52-week high. But Biotech ETF iShares NASDAQ Biotechnology Index (IBB) has turned negative after landing a new year high.

In corporate news, Questcor Pharmaceuticals, Inc. (QCOR) is down 39.7%, but is way above a new year low of $22.26 hit earlier, following a report by Citron Research noting that Aetna (AET) is dropping coverage of Acthar. AET disclosed that after studies, it found no proof of efficacy to substantiate reimbursement for Achtar when treating multiple sclerosis and nephrotic syndrome. AET shares are down 0.4%.

Consumer -

Consumer ETFs are firmer, reaching new 52-week highs: Consumer Staples Select Sector SPDR (XLP), up 0.39%, with a new 52-week high; iShares Dow Jones US Consumer Goods (IYK), up 0.56%, also with a new year high; and Vanguard Consumer Staples ETF (VDC), up 0.46%, also with a new year high.

Retail ETFs are higher: SPDR S&P Retail (XRT), up 1%, closer to year highs; PowerShares Dynamic Retail (PMR), up 0.678%; and Market Vectors Retail ETF (RTH), up 0.74%, with a new year high.

Technology -

Tech ETFs are higher: Technology Select Sector SPDR ETF (XLK), up 0.06% at year high levels; iShares Dow Jones US Technology ETF (IYW), now up 0.06% and closer to year highs; iShares S&P North American Technology ETF (IGM), up 0.18%; and iShares S&P North American Technology-Software Index (IGV), up 0.15%.

Among Semiconductor ETFs, Semiconductor Sector Index Fund (SOXX) is down 0.57%, and SPDR S&P Semiconductor (XSD) is down 0.06%.

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

Power Play -

Homebuilders -

Homebuilder ETFs are firming up in mid-day action, bolstered by a better-than-expected increase in August Existing Home Sales to 4.82 mln: SPDR S&P Homebuilders (XHB), up 2%; iShares Dow Jones US Home Construction Index Fund (ITB), up 2.8%, near year highs; and PowerShares Dynamic Building & Construction Portfolio (PKB), up 1.82%, also nearing year highs.

Homebuilder stocks also ticking higher, with most reaching new year highs or are near year highs: The Ryland Group (RYL), up 5.62%; PulteGroup (PHM), up 5.73%; Beazer Homes USA (BZH), up 6.23%; D.R. Horton (DHI), up 4.26%; and M.D.C. Holdings (MDC), up 3%.




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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