Mid-Day ETF Update: ETFs, Stocks Continue Rally After Summers Out From Fed Chair Race, Yellen Now Frontrunner

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Active broad-market exchange-traded funds in Monday's regular session:

SPDR S&P 500 ETF Trust ( SPY ): +0.8%, reaching a new 52-week high

iShares MSCI Emerging Markets Index ( EEM ): +1.3%

Select Financial Sector SPDRs ( XLF ): +1.4%, near 52-week highs

iPath S&P 500 VIX Short Term Futures ( VXX ): -1.6%, near 52-week lows

Market Vectors Gold Miners ( GDX ): +0.8%

Broad Market Indicators

Many broad-market exchange-traded funds, including SPY, IWM, IVV and others, have neared and/or reached 52-week highs. Actively traded PowerShares QQQ (QQQ) was up 0.1%, setting a 52-week high of $78.72.

U.S. stocks continue to make gains after Larry Summers said he wouldn't run for chairman of the Federal Reserve. Summers, who had been seen as a leading contender, was perceived by investors as keen to taper the Fed's stimulus program. Janet Yellen, the Fed's current vice chair is now seen as a leading contender and is seen as favoring a more gradual easing of stimulus. In economic news, the Empire Manufacturing Survey for September showed a reading of 6.3, down from the prior month's reading of 8.2 but below economists' forecasts. Separately, August industrial production increased 0.4%, below estimates.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) was up 1.4%, near 52 week highs. Direxion Daily Financial Bull 3X shares (FAS) was up 3.5%. Its bearish counterpart, FAZ, was down 3.6%.

Among financial stocks, American Realty Capital Properties (ARCP) was down 3.85% after it earlier announced that it expects to raise about $481 million through the private placement of about 21.7 million convertible notes and 15.1 million in common shares.

Technology -

Technology Select Sector SPDR ETF (XLK) was up 0.1%, with a new 52-week high of $32.50. iShares S&P North American Technology ETF (IGM) and iShares S&P North American Technology-Software Index (IGV), both hit new 52-week highs. iShares Dow Jones US Technology ETF (IYW) was up 0.1%, near its 52-week high.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.79%, nearing its 52-week high. Semiconductor Sector Index Fund (SOXX) was up 0.8%, reaching a new 52-week high of $67.38. SPDR S&P International Technology Sector ETF (IPK) was up 1.16%, also at a new 52-week high of $29.72.

In sector news, shares in Internet Gold Golden Lines (IGLD) were up 24%, setting a fresh new 52-week high of $7.98, after Israeli regulators gave the go-ahead to the takeover of Bezeq Israeli Telecommunications Corp (BEZQ) in which it has a 31% stake, Bloomberg reported. Internet Gold owns the Bezeq stake through its B Communications unit (BCOM).

Energy -

Dow Jones U.S. Energy Fund (IYE) was up 0.5%, hitting a new 52-week high of $47.92. Energy Select Sector SPDR (XLE) was also up 0.3%, hitting a new 52-week high of $84.66.

In sector news, L&L Energy (LLEN) was down 5% after it said it has reached a strategic agreement with the China Low-Carbon Industry Investment Center to jointly develop new energy initiatives. The investment center has invited L&L to build new energy projects using low carbon and new energy technology on its land located at an industrial park in Zhuozhou City, Hebei Province, approximately 30 miles from Beijing City center.

Commodities -

Crude was down 1.10%, and United States Oil Fund (USO) was down 1.2%, but still near its 52-week highs. Natural gas was up 1.38%, and United States Natural Gas Fund (UNG) was up 1.6%.

Gold was up 0.73%, off session highs, and the SPDR Gold Trust (GLD) was off 0.4%. Silver was up 1.38%; iShares Silver Trust (SLV) was down 1%.

Healthcare -

Health Care SPDR (XLV) was up 1%, reaching a new 52-week high of $51.83; Vanguard Health Care ETF (VHT), iShares Dow Jones US Healthcare (IYH) and Biotech ETF iShares NASDAQ Biotechnology Index (IBB) all reached their 52-week highs.

In corporate news, Aastrom Biosciences (ASTM) was up 6.9% from near 52 week lows after saying Health Canada has approved its clinical trial application to initiate the ongoing Phase 2bixCELL-DCm clinical trial in Canada. The iCELL-DCM study, currently enrolling patients in the U.S., is a randomized, double-blind placebo-controlled study of ixmyelocal-T in patients with advanced heart failure due to ischemic dilated cardiomyopathy.

Consumer -

Consumer funds were inching closer to their 52-week highs: Consumer Staples Select Sector SPDR (XLP) was up 0.9%; iShares Dow Jones US Consumer Goods (IYK), up 1.56%; and Vanguard Consumer Staples ETF (VDC), up 1.2%.

In sector news, Boize (BZ) is up 26%, reaching a 52-week high of $12.68. Packaging Corporation of America (PKG) and Boise have entered into a agreement under which PCA will acquire all of the outstanding common shares of Boise for $12.55 per share in cash, for an aggregate transaction value of $1.995 billion, inclusive of $714 million of outstanding indebtedness of Boise.



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 , GDX , SPY , VXX , XLF

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As of 8/29/2014, 02:02 PM

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