Mid-Day ETF Update: ETFs, Stocks Rally As Senators Reach Bipartisan Deal

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

SPDR S&P 500 ETF Trust ( SPY ): +1.21%

iPath S&P 500 VIX Short Term Futures TM ( VXX ): -9.58%

Select Financial Sector SPDRs ( XLF ): +1.95%, near 52-week highs

iShares MSCI Emerging Markets Index ( EEM ): +0.86%

PowerShares QQQ Trust, Series 1 ( QQQ ): +1.06%, with a new 52-week high of $80.42

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, were higher, mostly reaching or nearing 52-week highs. Actively traded PowerShares QQQ ( QQQ ) is up 1.06%, reaching a new 52-week high of $80.42.

U.S. stocks have vaulted to intraday highs after U.S. senators said they have crafted a bipartisan debt and budget deal that will reopen the government and lift the debt ceiling. The deal will set up a committee to settle broader budget issues. It will also lift the debt ceiling through Feb. 7 and fund the federal government through Jan. 15. The Senate and House will still need to vote on the agreement.

Power Play: Technology

Technology ETFs and stocks rallying - nearing or having reached 52-week highs: Technology Select Sector SPDR ETF (XLK), up 1.02%; iShares Dow Jones US Technology ETF (IYW), up 0.90%; iShares S&P North American Technology ETF (IGM), up 0.85%; and iShares S&P North American Technology-Software Index (IGV), up 1.09%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.76%, with a new 52-week high of $58.62; and Semiconductor Sector Index Fund (SOXX), was up 0.82%, near its 52-week high. SPDR S&P International Technology Sector ETF (IPK) was up 0.19%, also near its 52-week high.

In sector news, Ellie Mae Inc. (ELLI) was down 9.04% after the Software-as-a-Service provider to the mortgage industry reported September origination data showing as the portion of loans being used for purchases rose in the month, credit standards fell. Ellie Mae said the portion of purchase loans rose to 58% of all loans in September, up from 57% in August and 35% a year earlier. However, average FICO scores for closed loans declined to 732, from 734 in August. The average FICO score was down 15 points from January and the lowest level since tracking began in August 2011. While the lower average FICO score means credit has been more accessible, it also means the loans are getting riskier.

Winners and Losers

Financial

Select Financial Sector SPDRs ( XLF ) was up 2.12%, near 52-week highs. Direxion Daily Financial Bull 3X shares (FAS) was up 2.07%, also near its 52-week high. Its bearish counterpart, FAZ, was down 5.67%, sinking to a new 52-week low of $26.33.

Among stocks, Bank of America (BAC) turned positive and was up 2.11% after reporting Q3 earnings of $0.20 per share, vs. the analyst consensus of $0.19 per share on Capital IQ. Revenue was $21.74 billion, vs. expectations of $21.74 billion.

Energy -

Dow Jones U.S. Energy Fund (IYE) was up 1.29%, with a new 52-week high of $48.72. Energy Select Sector SPDR (XLE) was up 1.47%, also hitting a new 52-week high of $86.07.

In sector news, Western Refining (WNR) was up 2.41% after it said late Tuesday that its board of directors approved a $0.22 per share dividend for Q4, an increase from the $0.18 per share dividend paid in Q3. The dividend will be paid on Nov. 14 to shareholders of record on Oct. 30.

Commodities -

Crude was up 1.18%; United States Oil Fund (USO) was up 1.40%. Natural gas was up 0.55%, and United States Natural Gas Fund (UNG) was now up 0.72%.

Gold was up 0.58%, and SPDR Gold Trust (GLD) was down 0.15%. Silver was up 0.8%; iShares Silver Trust (SLV) was flat.

Consumer -

Consumer Staples Select Sector SPDR (XLP) was up 1.06%. iShares Dow Jones US Consumer Goods (IYK) was up 0.89%, while Vanguard Consumer Staples ETF (VDC) was up 1.04%.

In sector news, Mattel, Inc. (MAT) was up 2.42% after reporting Q3 earnings of $1.16 per share, ex one-time items, versus the Capital IQ consensus of $1.12. Revenues were $2.21 billion, versus the analyst estimate of $2.19 billion. The company said that among its brands, gross sales for the American Girl Brands rose 20%; for the Barbie brand, up 3%; and for the Other Girls Brands, primarily driven by Monster High, up 28%.

Healthcare -

Health Care SPDR (XLV) was up 1.64% and touched a new 52-week high of $52.25. Among other healthcare ETFs, iShares Dow Jones US Healthcare (IYH) and Biotech ETF iShares NASDAQ Biotechnology Index (IBB) were firmer. Vanguard Health Care ETF (VHT) was up 1.56%, with a new 52-week high of $95.73.

In corporate news, biopharmaceutical company Portola Pharmaceuticals Inc. (PTLA) was up 1.36% after the company said it has commenced an underwritten public offering of shares of its common stock and expects to raise aggregate proceeds of approximately $100 million. PTLA intends to use the net proceeds from this offering to fund its BLA-enabling registration studies, Phase 1/2 proof-of-concept study of PRT2070, and Phase 3 Betrixaban study, and for general corporate purposes.

Industrial -

Select Sector SPDR-Industrial (XLI) was up 0.39%; iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ) and Vanguard Industrials (VIS) were also firmer, trading at the higher end of their 52-week ranges.

Among stocks, Stanley Black & Decker (SWK) was down 13.95% after reporting Q2 earnings of $1.39 per share, ex one-time items, versus the Capital IQ consensus of $1.40. Revenues were $2.8 billion, versus the analyst estimate of $2.82 billion. For FY13, the company now expects EPS of $4.90 - $5.00, down from the prior guidance of $5.40 - $5.65. The company lowered its guidance due to slower margin rate recovery within its Security segment, weakening emerging markets and the impact of the U.S. government shutdown on organic growth. Analysts are looking for EPS of $5.44.



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.

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This article appears in: Investing , Commodities

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

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