Mid-Day ETF Update: ETFs Mixed To Higher, Stocks Higher on Upbeat U.S. Economic Data

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

SPDR S&P 500 ( SPY ): +0.53%

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.58%


iShares MSCI Emerging Markets Index ( EEM ): +1.5%

iShares Russell 2000 Index ( IWM ): +0.16%

Financial Select Sector SPDR ( XLF ): +1.47%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others are mixed to higher. But actively traded PowerShares QQQ ( QQQ ) is down 0.6%.

U.S. stocks continue to turn higher, with the Dow Jones Industrial Average up triple digits. Market sentiment brightened following the Institute for Supply Management's report that the U.S. services sector increased at a slightly faster rate in November, and the Commerce Department's report that factory orders unexpectedly rose 0.8% in October. Earlier, stocks were buoyed after ADP said 118,000 private-sector jobs were added in November, in line with forecasts. The Labor Department also reported that U.S. Q3 productivity was revised up to 2.9% from an initial reading of 1.9%.

Winners and Losers

Financial -

Select Financial Sector SPDRs (XLF# is up 1.4% and nearer to 52 week highs. Direxion Daily Financial Bull 3X shares #FAS# is up more than 3%. Its bearish counterpart, FAZ, is down more than 3% and within $1 of 52 week lows.

Among financial stocks, Citigroup #C# is up more than 6% after earlier announcing that it will undertake a series of repositioning actions to improve operating efficiency. These repositioning actions will result in pre-tax charges of approximately $1 billion in Q4 2012 and approximately $100 million of related charges in H1 2013. Citi currently expects that the repositioning will generate $900 million of expense savings that will benefit its 2013 results. In addition to the financial cost, the repositioning actions will result in the loss of approximately 11,000 jobs.

Technology -

Tech ETFs are lower: Technology Select Sector SPDR ETF #XLK#, down 0.48%; iShares Dow Jones US Technology ETF #IYW#, down 0.76%; iShares S&P North American Technology ETF #IGM#, down 0.02%; and iShares S&P North American Technology-Software Index #IGV#, down 0.6%.

Among semiconductor ETFs, SPDR S&P Semiconductor #XSD# is up 0.07% but the Semiconductor Sector Index Fund #SOXX# has turned slightly positive. SPDR S&P International Technology Sector ETF #IPK# is now up 0.5%.

In sector news, Nokia #NOK# is up nearly 10% following a report on MarketWatch that stated the Finnish mobile phone maker is launching a new Windows-based Lumia handset in partnership with China's biggest operator, China Mobile Ltd., aiming to reach out to more consumers in the Chinese smartphone market. The Lumia 920T device, which offers features such as advanced location services and photography technology, is China's first Windows phone making use of the country's TD-SCDMA technical standard, Nokia reportedly said. The device will be available for order by the end of the current year at a retail price of 4,599 yuan #$739# without contract, the report added.

Industrial -

Industrial ETFs are in positive territory: Vanguard Industrials #VIS#, up 0.84% and closer to 52 week highs; iShares Trust Dow Jones U.S. Industrial Sector Index Fund #IYJ#, up 0.9%; and Select Sector SPDR-Industrial #XLI#, up more than 1%.

In sector news, AeroVironment #AVAV# is now up around 15% after it reported in Tuesday's after hours session Q2 earnings of $0.39 per share, above the Capital IQ consensus of $0.24. Revenues were $80.3 mln, also topping the analyst estimate of $77.40 mln. The company expects FY13 revenues of $348 mln - $370 mln, and EPS of $1.41 - $1.51 on a fully diluted basis. Analysts are expecting $352.20 mln in revenues and $1.42 in EPS.

Commodities -

Crude was down 0.40%; natural gas was up 4.38%. United States Oil Fund #USO# is down 0.25%. United States Natural Gas Fund #UNG# is up 4.5%.

Gold was down 0.04% and silver was up 0.20%. Among rare metal funds, SPDR Gold Trust #GLD# is down 0.26%; iShares Silver Trust #SLV# is down 0.28%.

Healthcare -

Healthcare ETFs are higher: Health Care SPDR #XLV#, up 0.6%; Vanguard Health Care ETF #VHT#, also up 0.6%; iShares Dow Jones US Healthcare #IYH#, up 0.5%. But Biotech ETF iShares NASDAQ Biotechnology Index #IBB#, on the other hand, is down 0.1%.

In corporate news, Anika Therapeutics #ANIK# is now down 20%, following the company's announcement that the U.S. Food and Drug Administration #FDA# is upholding the non-approvable decision for the Monovisc PMA, according to the correspondence from the FDA's chief scientific officer of the Center for Devices and Radiological Health.

Consumer -

Consumer ETFs are firmer at mid-day: Consumer Staples Select Sector SPDR #XLP#, up 0.3% and closing in on 52 week highs; iShares Dow Jones US Consumer Goods #IYK#, up 0.1%; and Vanguard Consumer Staples ETF #VDC#, up 0.26%.

Retail ETFs are mostly higher: SPDR S&P Retail #XRT# is down 0.06%. But PowerShares Dynamic Retail #PMR# is up 0.39%; and Market Vectors Retail ETF #RTH# is up 0.59%, with a new 52-week high of $45.16.

In sector news, Starbucks #SBUX# is down nearly 1% but above day lows after the company unveiled its growth plans during a conference call. Included in SBUX's plans is the opening of over 3,000 net new stores in the Americas region by 2017, and Channel Development #CPG# to double its international footprint by 2015. SBUX also reiterated its commitment to a leadership position in the $40 billion global tea market and reaffirmed intent to acquire Teavana #TEA# this year. TEA shares are now up 7%.

Power Play -

Energy -

Dow Jones U.S. Energy Fund #IYE# is up 1.14% and Energy Select Sector SPDR #XLE# is 1% higher.

McMoRan Exploration #MMR# is now up more than 80% and closing in on 52 week highs after the company confirmed earier reports that Freeport McMoRan #FCX) is acquiring the company, which was spun out of Freeport in 1994 and has an equity value of $1.4 bln. The move will create a natural resources conglomerate likely to be worth close to $50 bln, including debt. FCX shares are down 14% and nearing 52 week lows.



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.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

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

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As of 12/19/2014, 04:15 PM


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