Referenced Stocks

Mid-Day ETF Update: ETFs Mixed, Stocks Slip Into the Red on Disappointing U.S. Jobs Data

By MT Newswires September 07, 2012, 01:26:41 PM EDT

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

SPDR S&P 500 ( SPY ): +0.26%, hit new year highs.

iPath S&P 500 VIX Short Term Futures TM ( VXX ): -4.5%, tumbles to new year low.

iShares MSCI Emerging Markets Index ( EEM ): +2.09%

Financial Select Sector SPDR ( XLF ): +1.23%, nearer to year highs

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.2%, earlier hit new year high.

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are mixed. Actively traded PowerShares QQQ ( QQQ ) is down 0.2% but earlier logged a new 52-week high of $69.55. Although across the broader market ETfs are mixed, several touched new year highs before slipping into negative territory.

U.S. stocks are also edging lower, giving up gains made on the back of the new ECB bond-buying program. Market sentiment has been dampened by disappointing jobs data, with the U.S. employment growth slowing sharply as nonfarm payrolls grew by a seasonally adjusted 96,000 in August, below expectations.

Winners and Losers

Technology -

Tech ETFs iShares Dow Jones US Technology ETF (IYW) is down 0.13% while iShares S&P North American Technology-Software Index (IGV) is down 0.4%. iShares S&P North American Technology ETF (IGM) is flat to slightly higher. Technology Select Sector SPDR ETF (XLK) is off 0.19% but earlier logged a new year high of $31.15.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) is down 0.24% and Semiconductor Sector Index Fund (SOXX) is down 0.66%.

SPDR S&P International Technology Sector ETF (IPK) is up 1.9%.

In sector news, Apple (AAPL) has hit a new year high ahead of the much anticipated launch of its new iPhone 5. Also ahead of this launch, which many anticipate will be on September 12, a report in the Wall Street Journal stated that Apple is in talks to license music for a custom-radio services similar to the one operated by Pandora (P). Apple also reportedly passed over Audience's (ADNC) processor IP in its next generation mobile phone. Audience said it is not aware of any intended changes by Apple to its use of Audience's processors or processor IP in prior generations of the mobile phones. Apple has been using ADNC chips since 2008.

Energy -

Dow Jones U.S. Energy Fund (IYE) is up 1.5%; Energy Select Sector SPDR (XLE) is up 1.65%.

Among stocks, Magnum Hunter Resources (MHR) shares have risen near 4% after the oil and gas company priced an underwritten public offering of non-convertible 8.0% Series D Cumulative Preferred Stock at $44.00 apiece. MHR expect net proceeds of about $44.6 million. The company, which is developing potential locations in West Virginia, Kentucky, Ohio, Texas, North Dakota and Saskatchewan, did not immediately disclose plans for the new money.

Commodities -

Crude was up 0.53% while natural gas was down 2.75%. United States Oil Fund (USO) is up 1.9%. United States Natural Gas Fund (UNG) is down 3.1%.

Gold and silver for December delivery were firmer, up 2% and 3% respectively. Among rare metal funds, SPDR Gold Trust (GLD) is up 2.18%; iShares Silver Trust (SLV) is up 3.1%.

Healthcare -

Healthcare ETFs are edging lower but earlier hit new 52-week highs: Health Care SPDR (XLV), down 0.1%; Vanguard Health Care ETF (VHT), down 0.04%, having hit a new year high of $72.09; iShares Dow Jones US Healthcare (IYH), down 0.12%, having struck a new year high of $83.56; and iShares NASDAQ Biotechnology Index (IBB), off a new year high of $141.52.

In corporate news, Cooper Cos. (COO) is up 8.5% but is off its new 52-week high of $94.89 after it reported Q3 revenue of $378.2 mln, vs. the analyst consensus of $368 mln on Capital IQ. EPS was $1.45 per share, vs. expectations of $1.29 per share. For Q4, the company expects revenue in the range of $390 to $400 mln and EPS of $1.50 to $1.55 per share. The Street is at $386 mln in revenue and earnings of $1.53 per share.

Consumer -

Consumer ETFs are weaker: Consumer Staples Select Sector SPDR (XLP), down 0.78% having hit new year highs; iShares Dow Jones US Consumer Goods (IYK), down 0.27%, but still near year highs; and Vanguard Consumer Staples ETF (VDC), down 0.8% but touched new year high of $91.58.

Retail ETFs are firmer, with most hitting new year highs: SPDR S&P Retail (XRT), up 0.14%, with a new year high of $63.71; PowerShares Dynamic Retail (PMR), down 0.5%; and Market Vectors Retail ETF (RTH), down 0.51\%, but earlier touched a new 52-week high of $44.92.

In sector news, Quiksilver (ZQK) continues to rally, and is up near 20% after it reported Q3 earnings of $0.09 per share, ex one-time items, versus the Capital IQ consensus of $0.05. Revenues were $512.4 mln, versus the analyst estimate of $527.18 mln. In the same period last year, the company reported EPS of $0.06 on revenues of $503.3 mln.

Power Play -

Financial -

Select Financial Sector SPDRs ( XLF ) is up 1.26% and near year highs. Direxion Daily Financial Bull 3X shares (FAS) is up 2.7%. Its bearish counterpart, FAZ, is down 2.71%.

Among financial stocks, U.S.-listed European banks are rallying on the ECB's new bond buying program, helping lift the sector: Deutsche Bank (DB), up 6.81%; ING Groep (ING), up 5.47%; Banco Santander, S.A. (SAN), up 2.67%; and Barclays PLC (BCS), up 7.31%.

In other financial news, Credit Suisse (CS) has upgraded its year-end target for S&P to 1,500 from 1,425. The firm said that weak volumes in September could make for sharp moves in the markets, and that event risks - such as German constitutional court, Spanish bank bail-out, and release of Troika funds to Greece, Spain signing MoU/applying for ESM - appear manageable.




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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