Mid-Day ETF Update: ETFs, Stocks Continue to Wither As ADP Jobs, Construction Spending and April ISM Miss Forecasts


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

SPDR Trust Series I ( SPY ) -0.43%

iShares Russell 2000 Index Fund ( IWM ) -1.86%

iShares MSCI Emerging Index Fund ( EEM ) -0.99%

iPath S&P 500 VIX Short Term Futures ( VXX ) +1.69%

inancial Select Sector SPDR ( XLF ) -0.59%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, continued to slip at mid-day. Actively traded PowerShares QQQ (QQQ) was down 0.26%.

U.S. stocks extended their losses into the session's half, weighed by lackluster earnings results from companies such as MasterCard (MA) and Merck (MRK). Market sentiment also soured following the report that the economy gained 119,000 private sector jobs, according to Automatic Data Processing Inc., much less than the 150,000 payroll jobs that economists had expected, according to a poll by Market Watch.

March construction spending declined 4.1% while the April ISM Index fell to 50.7 - both missed forecasts as well. Investors are looking forward to the conclusion of the Federal Reserve Open Market Committee's two-day policy meeting, and its policy statement, scheduled for release at 2:15 pm ET.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) was down 0.59%. Direxion Daily Financial Bull 3X shares (FAS) was down 1.7%. Its bearish counterpart, FAZ, was up 1.56%.

Among financial stocks, MasterCard (MA) was down 2.58% after it reported Q1 EPS of $6.23, versus the CIQ consensus of $6.17. Revenues came in at $1.90 billion, versus the consensus of $1.95 billion.

Technology -

Tech ETFs were mostly weaker: Technology Select Sector SPDR ETF (XLK), down 0.50%; iShares Dow Jones US Technology ETF (IYW), down 0.52%; iShares S&P North American Technology ETF (IGM), up 0.67%; and iShares S&P North American Technology-Software Index (IGV), up 0.01%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 1.01% and Semiconductor Sector Index Fund (SOXX) down 0.41%, but hit a new 52-week high of $60.33.

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

In sector news, Accelrys (AACL) was down 21% after it reported late Tuesday Q1 earnings of $0.06 per share, ex one-time items, versus the Capital IQ consensus of $0.08. Revenues were $43.9 million, versus the analyst estimate of $45.07 million. The company expects FY13 EPS of $0.32 - $0.34 on revenues of $17 million - $181 million. Analysts are looking for EPS of $0.37 on revenues of $186.66 million.

Energy -

Dow Jones U.S. Energy Fund (IYE) was down 0.96% and Energy Select Sector SPDR (XLE) was down 1.07%.

In sector news, Chesapeake Energy (CHK) reversed earlier gains of some 5% and was down 2% at mid-day. The company reported adjusted net income per fully diluted share of $0.30 increases 67% year-over-year. Analysts expected $0.25 per share, according to Capital IQ. Total revenues were $3.4 billion, up from $2.4 billion a year prior, which is more than the $3.2 billion analysts expected. The company plans to devote more than 80% of its total capital expenditures to drilling and completion activities in 2013 as compared to an average of approximately 50% over the last three years.

Commodities -

Crude was down 3.09%; natural gas was up 0.74%. United States Oil Fund (USO) was down 2.8%. United States Natural Gas Fund (UNG) was up 0.98%.

Gold was down 1.98% and silver was down 3.54%. Among rare metal funds, SPDR Gold Trust (GLD) was down 2.21%; iShares Silver Trust (SLV) was down 3.96%.

Healthcare -

Healthcare ETFs are mostly lower: Health Care SPDR (XLV), down 0.36%; Vanguard Health Care ETF (VHT), down 0.32%; and iShares Dow Jones US Healthcare (IYH), down 0.46%. Biotech ETF iShares NASDAQ Biotechnology Index (IBB), on the other hand, was higher, up 0.20%.

In corporate news, Allergan Inc (AGN) was down 12.8% after it reported Q1 earnings of $0.98 per share versus analyst consensus estimates on Cap IQ for $0.97 per share and up 14% from Q1 2012. Revenue was $1.43 billion, about in line with estimates of $1.44 billion, but

up 3% year over year.

Power Play -

Consumer -

Consumer ETFs continued to firm up at mid-day: Consumer Staples Select Sector SPDR (XLP), up 0.45%, near its 52-week high; iShares Dow Jones US Consumer Goods (IYK), up 0.11%, with a new 52-week high of $88; and Vanguard Consumer Staples ETF (VDC), up 0.35%, near its 52-week high.

In sector news, DreamWorks Animation SKG Inc. (DWA) was up 6.28%, treimming earlier gains of more than 9%, after reporting late Tuesday Q1 earnings of $0.07 per share, better than analyst estimates of a loss of $0.01 per share, and lower compared to prior year earnings of $0.11 per share. Revenues of $134.6 million handily topped analyst estimates of $96 million, but were lower compared to Q1 2012 revenues of $136 million.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, 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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