Mid-Day ETF Update: ETFs, Stocks Weaken Further on Lackluster Retail Sales, PPI and Consumer Sentiment Data


Active broad market exchange-traded funds at mid-day:

SPDR S&P 500 ( SPY ): -0.46%

iShares MSCI Emerging Markets Index ( EEM ): -1.83%

SPDR Gold Trust ( GLD ): -3.53%

Financial Select Sector SPDR ( XLF ): -0.75%, near its 52-week high

iShares Russell 2000 Index ( IWM ): -0.61%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, continued to be weaker. Actively traded PowerShares QQQ (QQQ) was down 0.26%.

U.S. stocks extended their losses into the session's half, logging further losses following the report that the University of Michigan-Thomson Reuters gauge on consumer sentiment dropped to 72.3 - its lowest reading since July, and missing the forecast of 79.3. Earlier, retail sales for March were reported to have declined to an adjusted 0.4% - its biggest decline since June; ex auto, retail sales also slipped 0.4%.

Analysts had pegged retail sales to remain unchanged, according to Briefing.com. Meanwhile, PPI for March fell 0.6%, a wider decline than the expected decrease of 0.1%. Core PPI rose 0.2%, versus the forecasts of a 0.1% growth. Business inventories for February rose 0.1% but missed the estimate of 0.4% increase. Fed Chairman Ben Bernanke spoke at a press conference, discussing the creation of resilient communities, but did not tackle monetary policy.

Winners and Losers

Technology -

Tech ETFs were in the red at mid-day: Technology Select Sector SPDR ETF (XLK), down 0.85%; iShares Dow Jones US Technology ETF (IYW), down 0.89%; iShares S&P North American Technology ETF (IGM), down 0.84%; and iShares S&P North American Technology-Software Index (IGV), down 0.57%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 0.77% and Semiconductor Sector Index Fund (SOXX) was down 0.83%.

SPDR S&P International Technology Sector ETF (IPK) was down 1.21%.

In sector news, Infosys Ltd. (INFY) slipped further, down 20.5% at mid-day. The company reported that fourth quarter 2013 EPS was $0.78 versus consensus estimate of $0.74. Revenues totaled $2 billion. Year-ago earnings per share was 81 cents, with revenues of $1.8 billion. For the fiscal year ending March 31, 2014, revenues are expected to grow 6% to 10%. The company also discontinued EPS guidance.

Energy -

Dow Jones U.S. Energy Fund (IYE) was down 1.64%. Energy Select Sector SPDR (XLE) was down 1.73%.

In sector news, CONSOL Energy (CNX) reversed and was down 2.66% at last check. The coal and natural gas company reported that its Coal Division produced 14.8 million tons for Q1 of 2013, including 1.3 million tons of low-vol coking coal from the company's Buchanan Mine. Both figures exceeded guidance as production surged to meet stronger-than-expected export markets.

CNX's Gas Division produced 39.2 Bcfe for Q1 or 4% more than the 37.7 Bcfe produced in the comparable quarter last year. This represented a decline in production of 6% compared to the prior quarter. For Q2, the company expects total coal production to be between 13.25 - 13.75 million tons. Buchanan Mine's Q2 production is expected to be between 0.9 - 1.0 million tons.

Gas production, net to CNX, is expected to be 38 Bcfe - 40 Bcfe, or relatively flat compared with the 39.2 Bcfe produced in Q1 of 2013. For FY13, total coal production guidance is 55.5 - 57.5 million tons. Gas production is projected to be 170 Bcfe - 180 Bcfe, net to CNX. Buchanan Mine's annual production guidance is now estimated at 4.0 - 4.2 million tons.

Commodities -

Crude was down 2.87%; natural gas was up 2.05%. United States Oil Fund (USO) was down 2.60%. United States Natural Gas Fund (UNG) was up 1.77%.

Gold was down 3.73%, sinking to a new 52-week low of $1491. Silver saw sharp losses as well, and was down 4.72%, hitting a new 52-week low of $25.97. Among rare metal funds, SPDR Gold Trust ( GLD ) was down 3.53%, with a 52-week low of $144.34; iShares Silver Trust (SLV) was down 4.19%, also with a new 52-week low of $25.18.

Healthcare -

Healthcare ETFs were mixed but trading at the higher end of their 52-week ranges: Health Care SPDR (XLV), up 0.05%; Vanguard Health Care ETF (VHT), down 0.01%; and iShares Dow Jones US Healthcare (IYH), up 0.03%. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 0.40%, with a new 52-week high of $168.74.

In corporate news, Warner Chilcott (WCRX) was up 4.51% after earlier announcing that the FDA approved a 200-mg dosage of DORYX Delayed-Release Tablets. DORYX Delayed-Release Tablets are a tetracycline-class oral antibiotic. The company anticipates that it will commercially launch DORYX Delayed-Release 200-mg Tablets in July.

Consumer -

Consumer ETFs were mixed but near their 52-week highs: Consumer Staples Select Sector SPDR (XLP), up 0.17%; iShares Dow Jones US Consumer Goods (IYK), down 0.13%; and Vanguard Consumer Staples ETF (VDC), up 0.20%.

In sector news, Chuy's Holdings (CHUY) was down 4.81% after pricing its secondary public offering of common stock at $33 a share, a discount to the $34.17 closing price on Thursday. Existing shareholders are selling a total of 3 million shares in the offering, with an option for underwriters to take a further 450,000 shares.

Power Play -

Financial -

ETFs and stocks in the space continued to see active trade following the earnings results of major banks JPMorgan Chase (JPM) and Wells Fargo (WFC). Select Financial Sector SPDRs ( XLF ) was down 0.75%, but still near its 52-week high. Direxion Daily Financial Bull 3X shares (FAS) was down 2.32%. Its bearish counterpart, FAZ, was up 2.35%.

Among financial stocks, Wells Fargo (WFC) was steady lower, down 1.76% after it reported Q1 earnings of $0.92, better than the analyst consensus of $0.89 per share on Capital IQ. Revenue was $21.26 bln, shy of the Street view of $21.4 bln. Both loans and core deposits were up from year ago levels. According to Bloomberg News, shares are feeling pressure after WFC's interest margin for the quarter missed estimates.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: EEM , GLD , IWM , SPY , XLF

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