Mid-Day ETF Update: ETFs, Stocks Trim Gains Despite Upbeat Factory Orders Data for September

By MidnightTrader.com Staff,

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

SPDR S&P 500 ETF Trust ( SPY ): +0.14%, but with new 52-week highs

iShares MSCI Emerging Markets Index ( EEM ): +0.26%

iPath S&P 500 VIX Short Term Futures TM ( VXX ): -1.17%, earlier hit 52-week low

iShares Russell 2000 Index ( IWM ): +0.95%, with new 52-week highs

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.12%, near 52-week highs

Broad Market Indicators

Many broad-market exchange-traded funds, including SPY, IWM, IVV and others have trimmed gains after reaching new 52-week highs earlier. Actively traded PowerShares QQQ ( QQQ ) was down 0.12%, near 52-week highs.

U.S. stocks are lower despite a 1.7% jump in factory orders for September to $490.8 billion, in line with forecasts. For August, factory orders fell 0.1%, while July factory orders were revised to a decline of 2.8%. Earlier gains, which came following comments from St. Louis Fed President James Bullard, had fizzled out as investors await more U.S. economic data - the October payrolls report and the advance estimate of Q3 GDP - within the week.

Power Play: Technology -

Technology Select Sector SPDR ETF (XLK) was up 0.15%, hitting a new 52-week high. Other tech ETFs 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 also firmer - hitting or near new 52-week highs.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.47% while Semiconductor Sector Index Fund (SOXX) was down 0.22%. SPDR S&P International Technology Sector ETF (IPK) was flat.

Among stocks, BlackBerry Ltd. (BBRY, BB.TO) continued to sink, reaching a new 52-week low of $6.40 and was down some 17% at last check. The struggling mobile-phone company said it was abandoning plans for a sale. Instead, Fairfax Financial Holdings Ltd. (FFH.TO) and other institutional investors will invest in BBRY through a $1 billion private placement of convertible debentures. CEO Thorsten Heins also agreed to step down in a a management shakeup that will also result in a new board chairman joining the company.

Winners and Losers

Financial -

Select Financial Sector SPDRs (XLF) was up 0.05%, near its 52-week high. Direxion Daily Financial Bull 3X shares (FAS) was down 0.09%. Its bearish counterpart, FAZ, was up 0.12% after sinking to a new 52-week low.

Among financial stocks, shares in Realogy Holdings (RLGY) were up nearly 7% after the residential real-estate company reported net revenue for Q3 was $1.55 billion, a 21% increase compared to the same period in 2012. Adjusted earnings per share was $1.02, up from a $4.24 per share loss a year prior. Analysts estimates were not available.

Energy -

Dow Jones U.S. Energy Fund (IYE) was up 0.82% and Energy Select Sector SPDR (XLE) was up 0.63% - with both reaching new 52-week highs.

In sector news, Tesco Corporation (TESO), technology provider to the energy industry, was up 5% after it reported Q3 net income of $11.7 million, or $0.29 per diluted share, up from $9 million, or $0.23 per diluted share, in the prior-year period. Revenues totaled $132.2 million, up from $126.4 million for the comparable period in 2012. No analyst estimates were available for comparison.

Commodities -

Crude was up 0.21%; United States Oil Fund (USO) was up 0.21%. Natural gas was down 2.377%, and United States Natural Gas Fund (UNG) was down 1.5%.

Gold was up 0.34%, and SPDR Gold Trust (GLD) was up 0.2%. Silver was down 0.17%; iShares Silver Trust (SLV) was down 2.58%.

Healthcare -

Health Care SPDR (XLV) was down 0.04%, but reached a new 52-week high; Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were higher, with fresh new 52-week highs. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 0.2%.

Among stocks, Achillion Pharmaceuticals Inc. (ACHN) was up nearly 15% after the biopharmaceutical company over the weekend released an encouraging preclinical profile of ACH-3422, a potential treatment of chronic hepatitis C viral infection or HCV, with its first-in-human and proof-of-concept trials expected in the first half of 2014. The preclinical profile detailed the potent and specific inhibition of HCV NS5B polymerase by ACH-3422, the demonstrated low risk for mitochondrial toxicity, and high efficiency in the conversion of ACH-3422 into the triphosphate within human hepatocyte cell lines, the company said.

Industrial -

Select Sector SPDR-Industrial (XLI) was up 0.2%, and posted a new 52 week high. iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ) and Vanguard Industrials (VIS) both also reached new 52-week highs.

Among stocks, Delta Air Lines (DAL) was up 4.20% and hit a new record high after the company said October consolidated passenger unit revenue (PRASM) rose 2% year-over-year, driven by a strong trans-Atlantic performance and business demand in Delta's Atlanta and New York hubs. The company said the projected December quarter fuel price per gallon is between $3.03 and $3.08.


Consumer Staples Select Sector SPDR (XLP) was flat but hit a new 52-week high of $42.71; Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) inched higher, also with ne 52-week highs.

Among stocks, Kellogg (K) was up 1.78% after the maker of ready-to-eat cereal and convenience foods, reported better-than-expected Q3 EPS and in-line revenue. The company also provided its EPS guidance for 2013, which possibly limits gains for the stock. Adjusted EPS rose 2.2% year-over-year to $0.95, beating the Capital IQ consensus of $0.89. Net sales were $3.7 billion, in line with analysts' estimate. Year-ago net sales were also $3.7 billion. For 2013, the company expects 2013 earnings to be at the lower-end of its previous guidance of $3.75-$3.84 per share. Analysts polled by Capital IQ are looking for $3.77. Net sales growth is expected to be between 4% and 5%.

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: EEM , IWM , QQQ , SPY , VXX

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