Mid-Day ETF Update: ETFs, Stocks Vault Higher as Investors Cheer Strong Earnings Reports; Google Breaks Above $1000

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

SPDR S&P 500 ETF Trust ( SPY ): +0.5%, with a new 52-week high.

iPath S&P 500 VIX Short Term Futures TM ( VXX ): -1.7%, with a new 52-week low.

iShares MSCI Emerging Markets Index ( EEM ): +0.4%

Select Financial Sector SPDRs ( XLF ): +0.17%, with a new 52-week high.

iShares Russell 2000 Index ( IWM ): +0.9%, with a new 52-week high.

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and actively traded PowerShares QQQ (QQQ), among others, were sharply higher, some hitting new 52-week highs although VXX hit a new year low.

U.S. stocks were also in the green, as mostly upbeat earnings have restored some of the investor confidence that had whittled away during the government shutdown and budget deal impasse in the past few weeks. Google's (GOOG) strong results continued to drive internet and tech stocks higher. Consumer and financial sectors however were underperforming the broader market.

Power Play: Technology

Technology -

Internet stocks and ETFs continued to lead the day's gainers, as tech giant Google (GOOG) maintained its upward momentum, up nearly 13% at last check and breaking above $1000. GOOG reported Q3 revenue of $14.89 billion, better than the analyst consensus of $14.80 billion on Capital IQ. EPS was $10.74, vs. expectations of $10.37 per share.

Among internet and tech stocks: First Trust DJ Internet Index Fund (FDN), iShares Dow Jones US Technology ETF (IYW), PowerShares Nasdaq Internet Portfolio (PNQI), Technology Select Sector SPDR ETF (XLK), iShares S&P North American Technology ETF (IGM), and iShares S&P Global Technology Sector (IXN) all hit new 52-week highs. These ETFs all maintain more than 5% exposure to Google.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were also in the green, reaching their own 52-week highs. SPDR S&P International Technology Sector ETF (IPK) was flat.

Winners and Losers

Financial

Select Financial Sector SPDRs ( XLF ) was up 0.2% and earlier touched a new 52-week high. Likewise, Direxion Daily Financial Bull 3X shares (FAS) hit a new 52-week high, up 0.5% at last check. Its bearish counterpart, FAZ, was down 0.5%, sinking to a new 52-week low.

Among stocks, Morgan Stanley (MS) was up about 3% and climbed to a new 52-week high after reporting Q3 revenue of $7.9 bln, vs. the analyst consensus of $7.52 bln on Capital IQ. EPS was $0.50, vs. expectations of $0.41 per share.

Energy -

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) both reached new 52 week highs.

In sector news, W&T Offshore, Inc. (WTI) has entered into an agreement with Callon Petroleum Operating Company (CPE) to acquire substantially all of Callon's exploration and production properties in the Gulf of Mexico. The transaction includes a 15% working interest in the Medusa field, a 10% membership interest in Medusa Spar LLC and various interests in 12 non-operated Gulf of Mexico fields. WTI shares were up 2% and CPE shares were up 11%, with both reaching new 52-week highs.

Commodities -

Crude was up 0.02%; United States Oil Fund (USO) was up 0.3%. Natural gas was down 1.28%, and United States Natural Gas Fund (UNG) was down 0.05%.

Gold was down 0.57%, and SPDR Gold Trust (GLD) was down 0.5%. Silver was down 0.08%; iShares Silver Trust (SLV) was up 0.50%.

Consumer -

Consumer Staples Select Sector SPDR (XLP) was off 0.1%. iShares Dow Jones US Consumer Goods (IYK) and Vanguard Consumer Staples ETF (VDC) were mixed, slightly up and slightly lower respectively.

In sector news, Chipotle Mexican Grill (CMG) was up 14% and touched a new 52-week high after it reported late Thursday Q3 revenue increased 18.0% to $826.9 million and diluted earnings per share was $2.66, an increase of 17.2%. Analysts expected $820 million in revenue and earnings of $2.78 in Q3. For 2013, Chipotle expects mid single-digit comparable restaurant sales and to open 165 to 180 new restaurants.

Healthcare -

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) all hit new 52-week highs but were slipping lower at last check. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was down 1.4%.

In corporate news, Ariad Pharmaceuticals Inc. (ARIA) tumbled 38% and hit a new 52-week low of $2.62 after the cancer-treatment company said it is discontinuing the Phase 3 EPIC (Evaluation of Ponatinib versus Imatinib in Chronic Myeloid Leukemia) trial of Iclusig (ponatinib) in patients with newly diagnosed chronic myeloid leukemia. The company said it and the U.S. Food and Drug Administration mutually agreed the trial should be terminated because arterial thrombotic events were observed in patients treated with Iclusig. The decision was made in the interest of patient safety based on a recent assessment of data in the clinical trial.

Industrial -

Select Sector SPDR-Industrial (XLI) was up 0.83%; iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ) was firmer, while Vanguard Industrials (VIS) touched a new 52-week high.

Among stocks, GE (GE) was up 3.7% and hit a new 52-week high after reporting Q3 operating EPS of $0.36, vs. the analyst consensus of $0.36 per share on Capital IQ and the Thomson Reuters consensus of $0.35 per share. Revenue was $35.7 billion, vs. expectations of $36 billion.



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 , IWM , SPY , VXX , XLF

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