Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 (
PowerShares QQQ Trust, Series 1 (
Financial Select Sector SPDR (
iShares Russell 2000 Index (
iPath S&P 500 VIX Short Term Futures TM ETN (
): -0.6%, near year lows
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and
others, are mostly firmer. Actively traded PowerShares QQQ (
) is up 0.7%.
U.S. stocks continue to trade in the green, with market
sentiment upbeat following the release of better-than-expected
economic data. The Institute for Supply Management's September
reading of business confidence in the U.S. service sector was
55.1%, topping forecasts, and was the best reading since March.
Earlier, the ADP's reported that private payrolls expanded by
162,000 in September, better than the expected 153,000 increase in
jobs that economists had forecast.
Winners and Losers
Select Financial Sector SPDRs (
) is up 1.12%. Direxion Daily Financial Bull 3X shares (FAS) is up
2.9%. Its bearish counterpart, FAZ, is down 2.79%.
Among financial stocks, Ares Capital Corporation (ARCC) is off
1% from near its 52-week high after it said it plans to make a
private offering of $200 million aggregate principal amount of its
Convertible Senior Notes due 2018.
Tech ETFs are in positive territory: Technology Select Sector
SPDR ETF (XLK), up 0.6% and nearer to year highs; iShares Dow Jones
US Technology ETF (IYW), up 0.52%; iShares S&P North American
Technology ETF (IGM), up 0.4%; and iShares S&P North American
Technology-Software Index (IGV), up 0.8%. Among semiconductor ETFs,
SPDR S&P Semiconductor (XSD) is down 0.16%; while Semiconductor
Sector Index Fund (SOXX) is up 0.1%.
SPDR S&P International Technology Sector ETF (IPK) is
In sector news, MetroPCS (PCS) is down near 10%, reversing
earlier gains, after No. 4 cellular carrier T-Mobile USA offered to
acquire a 74% stake of the No. 5 cellular carrier, paying $1.5
million in cash - or about $4 a share - to PCS shareholders. The
deal is being structured as a reverse merger, with PCS the
surviving company and giving T-Mobile a publicly traded stock and a
new route to raise capital as well as a path to pare down its
investment over time. The combined company will have about 42.5
million customers, still lagging behind No. 3 Sprint (S) by number
of subscribers. It will be called T-Mobile and run by T-Mobile CEO
Dow Jones U.S. Energy Fund (IYE) is down 1%; and Energy Select
Sector SPDR (XLE) is down 1.1%.
In sector news, Penn Virginia Corp (PVA) shares are down more
than 2% after the exploration and production company announced a
deal to acquire about 4,100 acres of property in the Eagle Ford
Shale of Texas for about $10 million.
Crude and metal prices fell as concerns about global growth came
to the forefront again following a report that China's service
industries expanded at a slow pace in September. Crude was down
2.76% while natural gas was down 4.59%. United States Oil Fund
(USO) is down 3.6%. United States Natural Gas Fund (UNG) is down
Gold was up 0.3%; silver hit an new session high of $34.93, up
0.23%. Among rare metal funds, SPDR Gold Trust (GLD) is up 0.1%;
iShares Silver Trust (SLV) is flat.
Consumer ETFs are firmer: Consumer Staples Select Sector SPDR
(XLP), up 0.6% to near year highs; iShares Dow Jones US Consumer
Goods (IYK), also up 0.6%; and Vanguard Consumer Staples ETF (VDC),
up 0.5%, hitting a new year high.
Retail ETFs are mostly firmer: SPDR S&P Retail (XRT), up
0.6%; PowerShares Dynamic Retail (PMR), off 0.08%; and Market
Vectors Retail ETF (RTH), up 1%, with a new year high.
In sector news, Best Buy (BBY) is up more than 4% following a
Reuters report that founder Richard Schulze and at least four
private equity firms are conducting due diligence on the company's
books that could lead to a potential $11 billion buyout. Among the
firms involved in the bid are Apollo Global Management, Cerberus
Capital Management, TPG Capital and Leonard Green & Partners.
Schulze is reportedly negotiating with each firm to determine how
much of his nearly 20% stake in Best Buy he would add to the bid,
as well as what role he would play after the buyout, according to
Reuters. Schulze has previously said he could buy Best Buy for $24
to $26 per share, which when including debt, could peg the buyout
at about $10.9 billion, Reuters noted.
Power Play -
Healthcare ETFs are firmer: Health Care SPDR (XLV), up 0.75%,
with a new year high of $40.90; Vanguard Health Care ETF (VHT), up
0.7%, with a new year high; and iShares Dow Jones US Healthcare
(IYH), up 0.7%, also with a new year high. Biotech ETF iShares
NASDAQ Biotechnology Index (IBB) is up 0.5%, with a new year