Mid-Day ETF Update: ETFs, Stocks Firm Up - Earnings In the Spotlight Following Budget Deal


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

SPDR S&P 500 ETF Trust ( SPY ): +0.5% , nearer 52 week highs.

iPath S&P 500 VIX Short Term Futures TM ( VXX ): -4.5%, with a new 52-week low.

Select Financial Sector SPDRs ( XLF ): +0.7%, near 52-week highs

iShares MSCI Emerging Markets Index ( EEM ): +0.3%

Market Vectors Gold Miners ( GDX ): +5.6%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, were mostly higher, with many reaching 52-week highs or trading near the top of their 52-week ranges. Actively traded PowerShares QQQ (QQQ) was up 0.4%, reaching a new 52-week high. ETFs related to gold and other precious metals continue to log sharp gains, while tech ETFs are mostly underperforming.

U.S. stocks continue to rebound with the S&P 500 index climbing to a new record high. After the U.S. Congress passed a deal to reopen the government and raise the debt limit, investors' attention has turned to earnings reports. Downbeat earnings results from IBM (IBM) and Goldman Sachs (GS) put pressure on the Dow, as the two stocks were the second and third highest weighted component on the index. Although several pieces of key economic data were issued, such as the weekly jobless claims and the October Philly Fed report, most analysts agree that the data has been muddied after the recent government shutdown.

Power Play: Technology

As focus shifted to earnings, technology ETFs and stocks were to the forefront as several tech companies reported their financial results in Wednesday's after hours and in today's pre-market session.

Among these, IBM (IBM) was one of the biggest point losers, down more than 6% and touching new 52-week lows. IBM, which is the second highest weighted component on the Dow, reported Q3 revenue of $23.7 billion, missing expectations of $24.79 billion. Earnings per share was $3.99, just above the consensus of$3.96 per share on Capital IQ. The company is maintaining its full year EPS expectation of at least $16.25 per share, and at least $16.90 per share, excluding a Q2 workforce rebalancing charge. The Street is at $16.71 per share.

Among ETFs, Technology Select Sector SPDR ETF (XLK), was down 0.03%, but still near its 52-week highs. Other tech ETFs iShares Dow Jones US Technology ETF (IYW) and iShares S&P North American Technology ETF (IGM) were also weaker. iShares S&P North American Technology-Software Index (IGV), on the other hand, was firmer.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 0.12%, earlier posted a new 52-week high. Semiconductor Sector Index Fund (SOXX), was up 0.45%, also with a new 52-week high. SPDR S&P International Technology Sector ETF (IPK) was up 0.33%, near 52-week highs.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was up 0.75%, near 52-week highs. Direxion Daily Financial Bull 3X shares (FAS) was up 2.3%, also near 52 week highs. Its bearish counterpart, FAZ, was down 2.4% at a new 52-week low.

Among stocks, Goldman Sachs (GS) was down 2.5% after it reported Q3 EPS of $2.88, up from $2.85 per share last year and ahead of the analyst consensus of $2.43 per share on Capital IQ. Revenue was $6.72 billion, down from $8.35 billion in the year ago quarter and below the Street view of $7.22 billion.

Energy -

Dow Jones U.S. Energy Fund (IYE) was at 52-week highs. Energy Select Sector SPDR (XLE) was now slightly lower having recorded a new 52 week high earlier.

In sector news, Peabody Energy Corporation (BTU) was up about 4.5% after the coal company reported Q3 2013 adjusted diluted EPS of $0.05 versus the consensus estimate for a loss of $0.03 on Capital IQ. Revenues totalled $1.8 billion, in line with analysts' expectation. For 2013, the company sees adjusted diluted EPS of $0.27 to $0.45.

Commodities -

Crude was down 1.8%; United States Oil Fund (USO) was down 1.6%. Natural gas was down 0.85%, and United States Natural Gas Fund (UNG) was down 0.7%.

Gold was up 2.89%, and SPDR Gold Trust (GLD) was up 3.4%. Silver was up; iShares Silver Trust (SLV) was up 2.9%.

Consumer -

Consumer Staples Select Sector SPDR (XLP) was up 0.8%. iShares Dow Jones US Consumer Goods (IYK) and Vanguard Consumer Staples ETF (VDC) were also firmer.

In sector news, grocery channel SUPERVALU INC. (SVU) has slipped 3% but earlier touched a new 52-week high of $8.76 after it reported Q2 2014 net income of $40 million, or $0.15 per diluted share, on net sales of $3.95 billion. In the prior-year period, the company booked a loss of $0.26 per share on net sales of $3.94 billion. Analysts polled by Capital IQ were looking for GAAP EPS of $0.11 on revenues of $3.95 billion.

Healthcare -

Health Care SPDR (XLV) was up 0.4% and touched a new 52-week high. Among other healthcare ETFs, iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) both hit new 52-week highs. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was also firmer.

In corporate news, American depositary shares of Amarin Corp. (AMRN) tumbled to their lowest level since 2010 after the biopharmaceutical company late Wednesday said the Food and Drug Administration's Endocrinologic and Metabolic Drugs Advisory Committee voted 9-2 against approval of its Vascepa capsules for certain uses. The committee voted against approving the treatment as an adjunct to diet and exercise and in combination with a statin in the treatment of adult patients with high triglycerides with mixed dyslipidemia and coronary-heart disease, or a CHD-risk equivalent. The FDA is scheduled to make its decision on whether to approve the Supplemental New Drug Application on the Dec. 20 Prescription Drug User Fee Act goal date for the application. Vascepa is approved by the FDA for use as an adjunct to diet to reduce triglyceride levels in adult patients with severe hypertriglyceridemia.

Industrial -

Select Sector SPDR-Industrial (XLI) was up 0.41%; iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ) and Vanguard Industrials (VIS) were also in positive territory, trading at the higher end of their 52-week ranges.

Among stocks, Universal Forest Products (UFPI) jumped 14%, touching a new 52-week high. The capital, management and administrative resources provider reported late Wednesday Q3 EPS of $0.71, above Capital IQ's estimates of $0.54, on revenues of $651.8 million, also above the consensus of $623.05 million. This compares to EPS of $0.21 on revenues of $533.4 million in the same quarter a year ago.

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

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This article appears in: Investing , Commodities
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