Mid-Day ETF Update: ETFs Mostly Firmer, Stocks Sharply Higher On Weak But Better Than Expected U.S. Economic Data

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

SPDR S&P 500 ( SPY ): +0.62%

Financial Select Sector SPDR ( XLF ): +1.4%, near year highs


iShares Russell 2000 Index ( IWM ): +0.19%

iShares MSCI Emerging Markets Index ( EEM ): +0.79%

iPath S&P 500 VIX Short Term Futures TM ETN ( VXX ): -1.46%, near year lows

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are mostly firmer. Actively traded PowerShares QQQ (QQQ) is up 0.22%.

U.S. stocks are sharply higher as investors shrug off the report that factory orders in August fell 5.2%. Though this was the second drop in the last three months, it was actually slightly better than the forecast of a 5.9% decline. Excluding transportation, new orders rose 0.7%. Earlier, the latest weekly initial jobless claims grew to 367,000 -- but lower than the expected 370,000. Markets also cheered the European Central Bank decision to leave key interest rates left unchanged, with ECB president Mario Draghi saying it is ready to start buying government bonds. Still on tap is the minutes from the September Federal Open Market Committee meeting, due out 2 pm ET.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) is up 1.42%, near its 52-week high. Direxion Daily Financial Bull 3X shares (FAS) is up 3.3%. Its bearish counterpart, FAZ, is down 3.2%.

Among financial stocks, NorthStar Realty Finance Corp. (NRF) is up 0.31%, nearer its year high. It has priced an underwritten public offering of $125 million of its 8.875% Series C Preferred Stock with a liquidation preference of $25 per share. The company intends to use the net proceeds of the offering to make investments relating to its business, to repurchase or pay its liabilities and for general corporate purposes.

Technology -

Tech ETFs are mixed: Technology Select Sector SPDR ETF (XLK), up 0.1%, near its year high; iShares Dow Jones US Technology ETF (IYW), off 0.1%; iShares S&P North American Technology ETF (IGM), up 0.06%; and iShares S&P North American Technology-Software Index (IGV), down 1.04%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) is down 0.4% and Semiconductor Sector Index Fund (SOXX) is up 0.15%. SPDR S&P International Technology Sector ETF (IPK) is flat.

In sector news, Informatica (INFA) is down 25%, touching a new year low of $23.83, after it said it expects Q3 revenue in the range of $189 to $191 mln, below the analyst consensus of $201 mln on Capital IQ. Non-GAAP EPS are seen at $0.25 to $0.27, vs. expectations of $0.34 per share.

Energy -

Dow Jones U.S. Energy Fund (IYE) is up 0.79%; Energy Select Sector SPDR (XLE) is up 0.8%.

In sector news, Boardwalk Pipeline Partners (BWP) is down 4.28% after announcing that it has priced its public offering of 10 million common units at $26.99 per unit.

Commodities -

Crude was up 2.47% while natural gas was up 0.18%. United States Oil Fund (USO) is up 2.76%. United States Natural Gas Fund (UNG) is down 0.18%.

Gold was up 0.83%; silver was up 0.79%. Among rare metal funds, SPDR Gold Trust (GLD) is up 0.79%; iShares Silver Trust (SLV) is up 1.16%.

Healthcare -

Healthcare ETFs are higher, touching new 52-week highs: Health Care SPDR (XLV), up 0.64%, with a new year high of $41.26; Vanguard Health Care ETF (VHT), up 0.5%, with a new year high of $75; and iShares Dow Jones US Healthcare (IYH), up 0.4%, with a new year high of $86.80; Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is also firmer, up 0.14% with a new year high.

In corporate news, NuVasive (NUVA) continues to plunge, now down 32.5% after saying late yesterday it expects Q3 revenue to be about $147 mln, below previous guidance that suggested flat sequential revenue growth compared to $154.4 mln in Q2. The analyst consensus on Capital IQ is $153.8 mln.

Power Play -

Consumer -

Consumer ETFs are firmer: Consumer Staples Select Sector SPDR (XLP), up 0.5%, with a new year high of $36.48; iShares Dow Jones US Consumer Goods (IYK), up 0.5%; and Vanguard Consumer Staples ETF (VDC), up 0.39%, with a new year high of $92.99.

Retailers continue to be in focus following their September comparable store sales reports. Retail ETFs SPDR S&P Retail (XRT), up 1.1%; PowerShares Dynamic Retail (PMR), up 0.59%; and Market Vectors Retail ETF (RTH), up 0.7%, with a new year high of $45.79.



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 , SPY , VXX , XLF

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


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