Mid-Day ETF Update: ETFs, Stocks Mixed Ahead of Fed's June Meeting Minutes

By MidnightTrader.com Staff,

Shutterstock photo

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

SPDR S&P 500 ( SPY ): +0.1%

Financial Select Sector SPDR ( XLF ): +0.9%

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.6%

iShares Russell 2000 Index ( IWM ): -0.4%

Vanguard MSCI Emerging Markets ETF ( VWO ): +0.4%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are mixed. Actively traded PowerShares QQQ ( QQQ ) is down 0.6%.

The market remains volatile as investors await the release of minutes from the Federal Reserve's June rate-setting meeting, though some optimism for another round of stimulus to help the economy is capping losses. The minutes of the central banks's June meeting are due to be released at 2 p.m. ET.

Winners and Losers

Select Financial Sector SPDRs ( XLF ) is up 0.8%. Direxion Daily Financial Bull 3X shares (FAS) is up 1.4%. Its bearish counterpart, FAZ, is down 1.5%.

Actives in the sector are firmer: Bank of America (BAC), up 2.1%; Goldman Sachs (GS), up 0.8%; Morgan Stanley (MS), up 1.9%; and Citigroup (C), up 1.2%.

Bank of America (BAC), Regions Financial (RF) and several other big banks face a sizeable hit to earnings from expected new rules related to overdraft fees, according to The Street, which cites a Deutsche Bank report published Monday. New rules expected from the Consumer Financial Protection Bureau (CFPB) would require banks to stop clearing customer transactions in order to maximize overdraft fee revenue. According to the report, a Deutsche Bank analyst sees Huntington Bancshares (HBAN), M&T Bank Corp. (MTB) and SunTrust Banks (STI) facing a 3% hit to 2013 earnings from the new rule.

Technology -

Tech actives are mostly in the red: Apple (AAPL), down 0.8%; Microsoft (MSFT), down 1.6%; Intel (INTC), down 0.9%; Google (GOOG), down 2.4%; Cisco (CSCO), flat; and Yahoo (YHOO), down 0.6%.

Amazon.com (AMZN) is down 0.9%, giving up earlier gains following a WSJ report that the company is testing smartphones with its component suppliers in Asia, as part of its plans to expand its mobile-device offerings. According to the WSJ, which cited unnamed officials at Amazon's parts suppliers, the company is also planning to mass produce the device starting late this year or early next year. The AMZN smartphone being tested, which runs on Google's (GOOG) Android platform, has a screen that measures between four to five inches, the report added.

Adtran (ADTN) continues to slump, now down 15.7% and hitting year lows after reporting late Tuesday Q2 earnings of $0.38 per share, ex one-time items, versus the Capital IQ consensus of $0.36. Revenues were $184 mln, versus the analyst estimate of $188.48 mln. In the same period last year, the company reported EPS of $0.59 on revenues of $184.23 mln.

ETFs in the space are weaker: iShares Dow Jones US Technology ETF (IYW), down 0.7%; iShares S&P North American Technology ETF (IGM), down 0.5%; iShares S&P North American Technology-Software Index (IGV), down 0.6%; and Technology Select Sector SPDR ETF (XLK), down 0.6%.

SPDR S&P Semiconductor (XSD), down 0.5%; Semiconductor Sector Index Fund (SOXX), down 1.2%. SPDR S&P International Technology Sector ETF (IPK) flat.

Commodities -

Crude is up 2.75%; likewise, natural gas is up around 2%. Among ETFs, United States Oil Fund (USO) is up 2.4% while the United States Natural Gas Fund (UNG) is up 2%.

Gold is down around 0.2% while silver is up around 0.9%. Among rare metal funds, SPDR Gold Trust (GLD) is up 0.5%; iShares Silver Trust (SLV) is up 0.7%.

The price of new corn earlier hit its highest levels since early November following the government report yesterday that there was greater than expected damage to corn crops. The USDA earlier reduced a U.S. corn production forecast by 12.3% to 12.97 bln bushels, down from 14.79 billion bushels due to the dry and hot weather being experienced. World corn inventory was reduced by 14% to 134.09 million metric tons despite reduction in imports and domestic feed.

Corn, however, has slipped back into the red, down around 1.7% to below around $7.05 a bushel. Among exchange traded funds, Teucrium Corn Fund (CORN) is down 2.6%.

Consumer -

Consumer Staples Select Sector SPDR (XLP) is down 0.1% from near year highs; iShares Dow Jones US Consumer Goods (IYK), up 0.1%; and Vanguard Consumer Staples ETF (VDC), down 0.1% from near year highs.

SPDR S&P Retail (XRT) is down 1%; PowerShares Dynamic Retail (PMR), up 0.12%; and Market Vectors Retail ETF (RTH), down 0.5% from year highs.

hhgregg (HGG) is down 38.5% and has hit year lows after the company said in Tuesday's after hours session that it sees a Q1 loss of $0.17 - $0.16 per share, versus the Capital IQ consensus of $0.05 loss per share. Revenues are expected to be $490 mln, versus the analyst estimate of $510 mln. For FY13, the company sees EPS of $0.90 - $1.05, versus the Street view of $1.20. This compares to previous guidance of net income per diluted share of $1.12 - $1.27.

Healthcare -

Health Care SPDR (XLV) is down 0.2%; iShares NASDAQ Biotechnology Index (IBB), down 1.7%; Vanguard Health Care ETF (VHT), down 0.4%; and iShares Dow Jones US Healthcare (IYH), down 0.11%.

Orexigen Therapeutics (OREX) is up 1%, trimming earlier gains of about 8% to that saw it hit new year highs after it updated the projected timeframe for completion of enrollment of the Light Study, the Contrave cardiovascular outcomes clinical trial. Orexigen now expects to complete enrollment of patients required for the interim analysis of the Light Study in the first quarter of 2013, potentially reducing by half the original projections. Shares of competitor Arena Pharmaceuticals (ARNA) are down 4.9%.

Teva Pharmaceutical (TEVA) is up 0.2% after the UK High Court of Justice issued a decision in favor of the company in a patent litigation proceeding against Generics (UK) Limited, a subsidiary of Mylan Laboratories (MYL), on July 11. Shares of Mylan are up 0.3%.

Power Play -

Energy -

ETFs and stocks in the sector are up: Mobil (XOM), up 0.2%; Chevron (CVX), up 1.5%; Noble (NE), up 3.4%; Murphy Oil (MUR), up 2.7%; Tesoro (TSO), 3.3%; and Unit (UNT), up 3.41%.

Dow Jones U.S. Energy Fund (IYE) is up 1.38% while Energy Select Sector SPDR (XLE) is up 1.51%.

Atlas Resource Partners, LP (ARP) is down 0.11% after filing a registration with the U.S. Securities and Exchange Commission to sell, from time to time, up to 5.53 million common units on behalf of selling unitholders.

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

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: IWM , QQQ , SPY , VWO , XLF

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