Mid-Day ETF Update: ETFs, Stocks Turn Lower After Earnings Disappoint

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Active broad-market exchange-traded funds at Tuesday's regular session:

SPDR S&P 500 ( SPY ): -0.16%, but still near its all-time high.

Select Financial Sector SPDRs ( XLF ): -0.30%, near its five-year high


iShares MSCI Emerging Markets Index ( EEM ): -0.49%.

Market Vectors Gold Miners ( GDX ): +1.89%

PowerShares QQQ Trust, Series 1 ( QQQ ): +0.24%, reaching a 13-year high.

Broad Market Indicators

Broad market exchange-traded funds were in the negative territory at the session's half, but most were still near their record or multi-year high. Actively traded PowerShares QQQ ( QQQ ) was up 0.24, reaching a new 13-year high of $88.59.

U.S. stocks were also mostly weaker following tepid earnings results from several companies. Market sentiment soured after Goldman Sachs issued valuation warnings, saying that the S&P 500 "is lofty by almost any measure." The IMF also said that global financial markets have not yet recovered from the Federal Reserve's announcement of tapering its bond-buying program in May 2013, resulting in continued volatility.

Power Play: Healthcare

Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) continued to outperform the broader market and reached fresh record highs. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 0.81% and also reached an all-time high.

In corporate news, Amarin Corporation (AMRN) was down some 24% after the company reported that the FDA's Division of Metabolism and Endocrinology Products said it will not reinstate ANCHOR SPA agreement. The company, however, said it plans to appeal the decision.

Winners and Losers

Financial

Select Financial Sector SPDRs ( XLF ) was down 0.34%, but still near its highest level since May 2008. Direxion Daily Financial Bull 3X shares (FAS) was down 0.67%. Its bearish counterpart, FAZ, was up 0.61% and was near an all-time low.

Among financial stocks, Signature Bank (SBNY) jumped to a record high and was up 12.56% at last check after the company reported Q4 earnings that topped expectations. The bank said adjusted diluted EPS for Q4 was $1.34, beating the Thomson Reuters consensus by $0.07. Year-ago adjusted diluted EPS was $1.05. Net interest income for the quarter was $178.3 million, up $31.2 million, or 21.2%, when compared with the same period last year, primarily due to growth in average interest-earning assets.

Technology

Technology Select Sector SPDR ETF (XLK) was down 0.21%, but just below its 12-year high. 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 mixed, but most were near or reached their 52-week highs. SPDR S&P International Technology Sector ETF (IPK) was up 0.83%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.19% while Semiconductor Sector Index Fund (SOXX) was down 0.11%.

In stocks news, Internet security and transaction services company Inteliquent, Inc. (IQNT) was up 20% after announcing Monday that Kurt Abkemeier has been appointed chief financial officer and executive vice president, effective immediately. He replaces Eric Carlson, the company's interim principal financial officer and interim principal accounting officer from August 2013. Shares also were upgraded at Raymond James.

Energy

Dow Jones U.S. Energy Fund (IYE) was down 0.14%, while Energy Select Sector SPDR (XLE) was up 0.06%.

In corporate news, oilfield services company Baker Hughes Incorporated (BHI) was up 1.87% after the company reported adjusted diluted EPS for Q4 was $0.62 per share, better than the Capital IQ consensus of $0.61. Adjusted net income was $277 million. Revenues for the period were $5.9 billion, topping estimates by $0.2 billion. In the same period last year, adjusted diluted EPS was $0.49, or a net income of $214 million, on revenues of $5.3 billion.

Commodities

Crude was up 0.55%; United States Oil Fund (USO) was up 0.45%. Natural gas was up 0.32%, near its 52-week high and United States Natural Gas Fund (UNG) was up 2.59%.

Gold was up 0.19% and silver was up 0.72%. Among rare metal funds, SPDR Gold Trust (GLD) was down 1%; iShares Silver Trust (SLV) was down 1.85%.

Consumer

Consumer Staples Select Sector SPDR (XLP) was up 0.01; other consumer ETFs Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were also lower.

In stocks news, Delta Air Lines Inc. (DAL) was up 3% and reached a new 52-week high after management forecast a significant improvement in profit this year compared with the previous year during a conference call for analysts, according to a Reuters report. The company also said it expects to complete a $500 million buyback authorization by June this year, according to the Reuters report. The company earlier in the day reported Q4earnings of $0.65 per share, exceeding the Capital IQ analyst consensus estimate by a penny. Total operating revenue rose 6% to $9.08 billion, in line with the $9.1 billion consensus estimate.



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 , GDX , QQQ , SPY , XLF

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As of 12/19/2014, 04:15 PM


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