Referenced Stocks

Mid-Day ETF Update: ETFs, Stocks Join Broader Market Rally Following Fed's QE3 Announcement

By Midnight Trader September 13, 2012, 01:25:08 PM EDT

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

SPDR S&P 500 ( SPY ): +0.7%, touched fresh year highs

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

Financial Select Sector SPDR ( XLF ): +1.3% to near year highs.

iPath S&P 500 VIX Short Term Futures TM ( VXX ): -4.7%, hit new year low.

PowerShares QQQ Trust, Series 1 ( QQQ ): +0.9%, near year highs.

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are sharply higher, with SPY pushing to a fresh new year high. Actively traded PowerShares QQQ ( QQQ ) is up 0.9% and also nearing its 52-week high. Financial ETFs are leading the rally, while commodity based ETFs are also seeing gains as gold, silver and crude oil spike shortly after the Federal Reserve's QE3 announcement.

U.S. stocks are up but off session highs as traders and investors digest the details in the Federal Reserve's announcement that it will launch a new bond buying program, and that it will start it by purchasing $40 billion in agency mortgage-backed securities each month starting this Friday. Volatility in stocks and ETFs is expected to continue until the news conference with Fed Chairman Ben Bernanke at 2.15 pm ET.

Winners and Losers

Technology -

Tech ETFs are mostly firmer: Technology Select Sector SPDR ETF (XLK), up 0.9% at year highs; iShares Dow Jones US Technology ETF (IYW), up 1%; iShares S&P North American Technology ETF (IGM), up 0.07%; and iShares S&P North American Technology-Software Index (IGV), up 0.4%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) has turned positive and Semiconductor Sector Index Fund (SOXX) is up 0.55%.

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

iShares Dow Jones US Telecom (IYZ) is showing notable strength, up 0.9% at new year highs.

In sector news, Apple Inc. (AAPL) is up 1.8% and closing in on year highs again after it yesterday unveiled a taller, lighter and speedier iPhone that's poised to become the fastest selling technology gadget in history -- even as competition accelerates in the $219.1 billion smartphone market, Bloomberg reports.

Commodities -

Crude was up 0.33% while natural gas was down 2.07%. United States Oil Fund (USO) is up 1.4%. United States Natural Gas Fund (UNG) is down 2.1%.

Rare metals continue to tick higher: Gold was up 1.04%; silver was up 1.99%. Among rare metal funds, SPDR Gold Trust (GLD) is up 2.2%; iShares Silver Trust (SLV) up 4.5%.

Consumer -

Consumer ETFs are firmer: Consumer Staples Select Sector SPDR (XLP), up 1.2% and near year highs; iShares Dow Jones US Consumer Goods (IYK), up 1.1% to near 12 month highs; and Vanguard Consumer Staples ETF (VDC), up 1%, also nearer to year high levels.

Retail ETFs are firmer: SPDR S&P Retail (XRT), up 1% and hit new year highs; PowerShares Dynamic Retail (PMR), up 0.82%; and Market Vectors Retail ETF (RTH), up 0.8%, having struck a new year high.

Healthcare -

Healthcare ETFs are firmer: Health Care SPDR (XLV), up 0.63% at year high levels; Vanguard Health Care ETF (VHT), up 0.71%, having also struck 12 month highs; and iShares Dow Jones US Healthcare (IYH), now up 0.5% at year highs. Biotech ETF iShares NASDAQ Biotechnology Index (IBB), has turned positive and it too is moving toward year highs.

Power Play -

Financial -

ETFs in the financial sector are logging gains following the Federal Reserve's announcement of the much anticipated QE3. Select Financial Sector SPDRs ( XLF ) is up 1.65% at year highs. Direxion Daily Financial Bull 3X shares (FAS) is up 4.42%. Its bearish counterpart, FAZ, is down 4.55%.




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.


This article appears in: Investing, Commodities

Referenced Stocks: EEM, QQQ, SPY, VXX, XLF



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