Mid-Day ETF Update: ETFs Track Stocks Higher on Upbeat Earnings, Spain Hopes; Blackrock Reduces Fees, Introduces New ETFs

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

SPDR S&P 500 ( SPY ): +1.04%

Financial Select Sector SPDR ( XLF ): +0.84%, near year high

iShares MSCI Emerging Markets Index ( EEM ): +1.18%

PowerShares QQQ Trust, Series 1 ( QQQ ): +1.34%

iShares Russell 2000 Index ( IWM ): +0.61%

In ETF news, investment management firm BlackRock (BLK) said late Monday that it will be reducing the fees on six of its exchange-traded funds and introducing four more new ETFs, according to a report on Reuters. The report stated that the most significant cut on an existing BLK ETF is on $362.5 million iShares Core S&P Total U.S. Stock Market ETF (ISI), which will see a cut of 0.07% from 0.20%. The new ETFs are also generally cheaper than existing ETFs, the report added. BLK's move follows the price reductions of ETFs from is competitors, low cost firm, Vanguard Group, which gained market share from BLK, and Charles Schwab Corp (SCHW), the report stated further.

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are firmer. Actively traded PowerShares QQQ ( QQQ ) is up 1.34%.

U.S. stocks continue to trade in the green, finding traction on upbeat earnings reports - particularly Goldman Sachs (GS) and Johnson & Johnson (JNJ) - as well as news reports that Spain is close to a possible bailout request. The markets took mixed economic results in stride, with the Federal Reserve reporting that industrial production in the U.S. rose more than was expected in September; consumer prices, on the other hand, jumped in September due to higher gas costs, with core prices increasing a seasonally adjusted 0.1%.

Winners and Losers

Technology -

Tech ETFs Technology Select Sector SPDR ETF (XLK), 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) are all leaning higher and at the top end of their 52-week trading range.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) and SPDR S&P International Technology Sector ETF (IPK) are all up by more than 2%.

In sector news, Identive Group (INVE) is up near 25% but off day highs after the company earlier launched a new smart card reader, the iAuthenticate, for Apple (AAPL) mobile devices.

Energy -

The energy sector is outperforming the broader market, and Energy ETFs are logging gains: Dow Jones U.S. Energy Fund (IYE) is up 1.56%; Energy Select Sector SPDR (XLE) is up 1.7%.

In sector news, Calumet Specialty Products Partners (CLMT) is up 8.5% after announcing that it will increase its quarterly cash distribution to $0.62 per unit for the quarter ended September 30, 2012 on all of its outstanding limited partner units. This distribution represents an increase of 5.1% over the previous quarterly distribution.

Commodities -

Crude was up 0.24% while natural gas was down 0.92%. United States Oil Fund (USO) has turned positive and is now up 0.1%. United States Natural Gas Fund (UNG) is down 1%.

Gold was up 0.45%; silver was up 0.6%. Among rare metal funds, SPDR Gold Trust (GLD) is up 0.4%; iShares Silver Trust (SLV) is up 0.8%.

Healthcare -

Healthcare ETFs Health Care SPDR (XLV), up 1%, near its year high; Vanguard Health Care ETF (VHT), up 0.9% and also near 52 week highs; and iShares Dow Jones US Healthcare (IYH), up 0.9%, pushing near its 52-week high. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is up 0.9%.

In corporate news, Isis Pharmaceuticals (ISIS) is down 18% as StreetInsider reports the FDA will review the cancer risk for Kynamro. The FDA asked an advisory panel on Oct 18th to discuss an "imbalance" in tumors seen in studies of Kynamro. Kynamro was also tied to increased cancers in rat studies, the report said.

Consumer -

Consumer ETFs are higher and near 52 week highs too: Consumer Staples Select Sector SPDR (XLP), up 0.1%; iShares Dow Jones US Consumer Goods (IYK), up 0.2%; and Vanguard Consumer Staples ETF (VDC), up 0.11%.

Retail ETFs are firmer: SPDR S&P Retail (XRT), up 0.85%; PowerShares Dynamic Retail (PMR), up 1.35%; and Market Vectors Retail ETF (RTH), up 0.5%, after hitting a new year high.

In sector news, Mattel (MAT) is up 4.9% and has hit a new 52-week high of $37.20 after it reported Q3 earnings of $1.04 per share, ex one-time items, versus the Capital IQ consensus of $0.99. Revenues were $2.08 bln, versus the analyst estimate of $2.07 bln. In the same period last year, the company reported EPS of $0.86 on revenues of $1.99 bln.

Power Play -

Financial -

Select Financial Sector SPDRs ( XLF ) is up 1%, near its 52-week high. Direxion Daily Financial Bull 3X shares (FAS) is up 2.5%. Its bearish counterpart, FAZ, is down 2.4%.

Among financial stocks, State Street (STT) is up 5% after the company earlier reported Q3 earnings of $0.99 per share, ex one-time items, versus the Capital IQ consensus of $0.96. Operating revenues were $2.35 mln, versus the analyst estimate of $2.38 bln. In the same period last year, the company reported EPS of $0.96 on revenues of $2.43 bln.



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 , XLF

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