Mid-Day ETF Update: ETFs, Stocks Weaken as Lowered Euro Zone Growth Forecast Dulls Upbeat U.S. Services Sector Data

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

SPDR S&P 500 ETF Trust ( SPY ): -0.32%, but with new 52-week highs

iShares MSCI Emerging Markets Index ( EEM ): -1.43%

iPath S&P 500 VIX Short Term Futures TM ( VXX ): +0.24%, earlier hit a 52-week low

iShares Russell 2000 Index ( IWM ): -0.52%, with new 52-week highs

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.10%

Broad Market Indicators

Many broad-market exchange-traded funds, including SPY, IWM, IVV and others turned negative in the session's half, although most of them reached new 52-week highs earlier. Actively traded PowerShares QQQ ( QQQ ) was down 0.10%.

U.S. stocks also slipped into the red, as downbeat news overseas dampened the better-than-expected data on U.S. services sector. Market sentiment was weighed by the European Commission's cut on its forecasts for economic growth in the euro zone - now expecting growth of 1.1% in 2014, from the prior outlook of 1.2%. It also said that unemployment in the region is expected to rise 12.2%, from the prior forecasts of an increase of 12.1%. Back home, the Institute for Supply Management reported that its survey of purchasing managers rose to 55.4% in October, beating forecasts.

Power Play: Consumer

Consumer ETFs are outperforming the broader market ETFs. Consumer Staples Select Sector SPDR (XLP) was up 0.23%, reaching 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 new 52-week highs.

Among stocks, Fabrinet (FN) was up nearly 11% and with a new 52-week high of $19.78 it reported late Monday Q1 EPS of $0.40, ex one-time items, on revenues of $171.6 million - which topped analysts' estimates. The company also provided Q2 guidance above Street expectations.

Winners and Losers

Financial -

Select Financial Sector SPDRs (XLF) was off 0.36%, but near its 52-week high. Direxion Daily Financial Bull 3X shares (FAS) was down 1.23%. Its bearish counterpart, FAZ, was up 1.07% after sinking to a new 52-week low.

Among financial stocks, property and casualty insurer Amtrust Financial Services, Inc. (AFSI) climbed 8% after reporting Q3 net income totaled $58.2 million, or $0.74 per diluted share, on revenues of $796.5 million. Analysts polled by Capital IQ had expected EPS of $0.74 on revenues of $567 million.

Technology -

Technology Select Sector SPDR ETF (XLK), iShares Dow Jones US Technology ETF (IYW) and iShares S&P North American Technology ETF (IGM) were lower, but earlier reached 52-week highs. iShares S&P North American Technology-Software Index (IGV) was also weaker.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 0.19% while Semiconductor Sector Index Fund (SOXX) was down 0.28%. SPDR S&P International Technology Sector ETF (IPK) was up 0.15%, near its 52-week high.

Among stocks, BroadSoft (BSFT) was down more than 23% after global provider of Voice Over IP (VoIP) communication services reported Q3 EPS of $0.29, ex one-time items, on revenues of $42.9 million. Results fell short of Street forecasts. The company's guidance for Q4 and FY13 also missed estimates.

Energy -

Dow Jones U.S. Energy Fund (IYE) was down 0.4% and Energy Select Sector SPDR (XLE) was down 0.53% - with both reaching new 52-week highs.

In sector news, Quicksilver Resources (KWK) rose 8.88% after saying Eni has agreed to pay up to $52 million to finance drilling, completion and seismic costs at the Delaware Basin currently held by Quicksilver in the Leon Valley area located in Pecos County, Texas. For its investment, Eni will earn a 50% interest in Quicksilver's Pecos County acreage. The company also earlier reported Q3 results that missed expectations - it posted a Q3 loss of $0.05 per share, ex special items, on revenues of $119.67 million.

Commodities -

Crude was down 1.11%; United States Oil Fund (USO) was down 0.85%. Meanwhile, natural gas was up 0.48%, and United States Natural Gas Fund (UNG) was up 0.35%, near its 52-week low.

Gold was down 0.39%, and SPDR Gold Trust (GLD) was down 0.32%. Silver was down 0.18%; iShares Silver Trust (SLV) was down 0.05%.

Healthcare -

Health Care SPDR (XLV) was down 0.36%, but reached a new 52-week high; Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were also weaker, but with fresh new 52-week highs. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 0.48%.

Among stocks, Endo Health Solutions (ENDP) climbed more than 28% and was at record high levels after it reported Q3 adjusted diluted EPS of $1.34, on revenues of $715 million, topping consensus estimates. The company raised its FY13 guidance. ENDP also said that it has acquired Paladin Labs Inc. (PLB.TO), a Canada-based specialty pharmaceutical company, for $1.6 billion, of which approximately 98% will be paid in shares of stock.

Industrial -

Select Sector SPDR-Industrial (XLI) was up 0.27%, 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, but were weaker.

Among stocks, Zebra Technologies (ZBRA) was up some 9%, touching a new 52-week high after the manufacturer of specialty printing devices reported late Monday Q3 earnings of $0.77 per share, ex one-time items, on revenues of $263.5 million - better than analysts' forecasts. Its Q4 guidance of $0.72 - $0.82 on revenues of $263 million - $273 million are also above the Street view.



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.

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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