Mid-Day ETF Update: ETFs, Stocks Struggle as 10-Year Bonds Rise 2.5%


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

SPDR S&P 500 ( SPY ): +0.2%, has turned positive

iPath S&P VIX Short Term Futures ( VXX ) -2.8%

iShares MSCI Emerging Markets Index ( EEM ): +1.2% from near year lows

Select Sector SPDR Fund Financial ( XLF ): +0.1%

iShares Russell 2000 Index ( IWM ): +0.2%

Broad Market Indicators

Most broad-market exchange-traded funds, including SPY, IWM, IVV and others, are higher, some recovering after earlier losses. Actively traded PowerShares QQQ (QQQ) was down 0.4%.

U.S. stocks were finding it hard to make gains as 10-year Treasury yield rose to 2.5%. Oracle (ORCL) led information technology stocks lower, weighing on the broader market, following its disappointing quarterly financial report late Thursday. Earlier, St. Louis Fed President James Bullard said he had voted against the Fed's policy decision because he thought the announcement of such "tapering" plans would have been ill-timed.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) is up 0.1%. Direxion Daily Financial Bull 3X shares (FAS) was up 1%. Its bearish counterpart, FAZ, was down 0.8%.

Among financial stocks, Morgan Stanley (MS) turned negative and was down 1%. It announced Friday that it received all regulatory approvals to acquire the remaining 35% interest in Morgan Stanley Smith Barney Holdings LLC from Citigroup Inc.(C). Citi shares were down 2.3%.

Energy -

Dow Jones U.S. Energy Fund (IYE) was up 0.1%; Energy Select Sector SPDR (XLE) up 0.1% at last check.

In sector news, Hess Corp (HES) and Newfield Exploration (NFX) are jockeying to sell part of their Asian oil and gas field stakes in two separate auctions with a combined value of about $3 billion, Reuters reports, citing "people familiar with the matter." HES shares slipped 1.2% while NFX shares are now up 0.4%.

Commodities -

July crude was down 3.36%; July natural gas was down 0.23%. United States Oil Fund (USO) turned negative and was down 0.8%. United States Natural Gas Fund (UNG) was down 1.9%.

August gold was up 0.72% and silver for July delivery was up 0.01%. Among rare metal funds, SPDR Gold Trust (GLD) was up 1.55%; iShares Silver Trust (SLV) was up 3%.

Consumer -

Consumer Staples Select Sector SPDR (XLP) was up 1.5%; other Consumer ETFs iShares Dow Jones US Consumer Goods (IYK) and Vanguard Consumer Staples ETF (VDC) were also in the green.

In sector news, CarMax (KMX) was down 2%, reversing earlier gains, after it reported Q1 net sales and operating revenues increased 19% to $3.31 billion from a year prior. Net earnings grew 21% to $146.7 million with earnings per diluted share up 23% to $0.64 from a year prior. Analysts expected $0.58 per share on $3.2 billion in revenue for Q1.

Healthcare -

Healthcare ETFs Health Care SPDR (XLV) was up 1%; Vanguard Health Care ETF (VHT), and iShares Dow Jones US Healthcare (IYH) were firmer. As was Biotech ETF iShares NASDAQ Biotechnology Index (IBB), which was lower.

In corporate news, Idenix Pharmaceuticals (IDIX) was down 30% and nearer 52 week lows after the company said it received verbal communication from the FDA requesting additional preclinical safety information for IDX20963, its lead uridine nucleotide prodrug candidate. The company expects a delay in initiation of its clinical trials.

Power Play -

Technology -

Tech ETFs Technology Select Sector SPDR ETF (XLK) slipped 0.5%. iShares Dow Jones US Technology ETF (IYW), iShares S&P North American Technology ETF (IGM) and iShares S&P North American Technology-Software Index (IGV) were all lower.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.6% and Semiconductor Sector Index Fund (SOXX) was up 0.4%.

SPDR S&P International Technology Sector ETF (IPK) turned good to be up 0.5%.

In sector news, Oracle (ORCL) was down near 9% after it reported late Thursday Q4 revenue of $11.0 bln, below the analyst consensus of $11.12 bln on Capital IQ. EPS was $0.87, vs. expectations of $0.88. On the company's conference call, ORLC guided 1Q revenue growth to 3% - 6% and Non GAAP 1Q EPS $0.56 - $0.59. This compares to current consensus of $8.774 billion for the top line (+4.5% y/y) and $0.58 on the bottom line (+9.4% y/y). Given the low bar, ORCL was expected to meet or exceed current forecasts.

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
More Headlines for: EEM , IWM , SPY , VXX , XLF

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