Referenced Stocks

Mid-Day ETF Update: ETFs Track Stocks Lower as Budget Deal to Avoid Fiscal Cliff, Upcoming Fed Minutes, in Focus

By Midnight Trader November 14, 2012, 01:24:59 PM EDT

Active broad-market exchange-traded funds:

SPDR S&P 500 ( SPY ): -0.53%

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.29%

Financial Select Sector SPDR ( XLF ): -0.9%

iShares MSCI Emerging Markets Index ( EEM ): -0.86%

iShares Russell 2000 Index ( IWM ): -1.1%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are weaker. Actively traded PowerShares QQQ ( QQQ ) is down 0.29%.

U.S. stocks have slipped into the red, erasing earlier gains, as focus once again turns to Washington's efforts to reach a deal to prevent the 'fiscal cliff'. President Obama is set to meet with corporate executives and hold a press conference later today, while his meeting with congressional leaders to discuss the budget will take place on Friday. Also weighing on stocks is lackluster economic data released earlier: October retail sales dipped 0.3% and October producer prices declined 0.2%; on the other hand, September business inventories increased 0.7%, slightly above expectations. Investors are also awaiting the minutes of the latest Federal Open Market Committee meeting, due for release at 2 p.m. ET, for potential clues on whether the Fed will continue buying government bonds.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) is down 0.8%. Direxion Daily Financial Bull 3X shares (FAS) is down 2.5%. Its bearish counterpart, FAZ, is up 2.5%.

Among financial actives, Citigroup Inc. (C) is now down 0.55%. Earlier, Trillium Asset Management LLC, on behalf of the Benedictine Sisters of Mount St. Scholastica, along with the AFSCME Employees Pension Plan filed a shareholder proposal asking Citi's board of directors to explore a possible separation of one or more of its business units.

Technology -

Tech ETFs are mixed at mid-day: Technology Select Sector SPDR ETF (XLK), slightly lower; iShares Dow Jones US Technology ETF (IYW), lost most gains but still up 0.1%; iShares S&P North American Technology ETF (IGM), down 0.23%; and iShares S&P North American Technology-Software Index (IGV), now down.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) is down 0.12%; and Semiconductor Sector Index Fund (SOXX) is down 0.44%.

SPDR S&P International Technology Sector ETF (IPK) is flat.

In sector news, Facebook (FB) shares have rallied 10% just as another 804 million shares held by early investors became eligible for sale.

Industrial -

Industrial ETFs are in negative territory: Vanguard Industrials (VIS), down 0.74%; iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ), down 0.67%; and Select Sector SPDR-Industrial (XLI), down 1%.

Among stocks, Woodward (WWD) is up 12% after it reported late Tuesday Q4 earnings of $0.66 per share, ex one-time items, versus the Capital IQ consensus of $0.8. Revenues were $528.7 mln, versus the analyst estimate of $531.79 mln. The company expects FY13 EPS of $2.15 - $2.35 on revenues of $1.85 bln - $2.00 bln. The Street view is $2.31 EPS on revenues of $1.99 bln.

Energy -

Dow Jones U.S. Energy Fund (IYE) is down 0.25%; Energy Select Sector SPDR (XLE) is down 0.22%.

In sector news, ConocoPhillips (COP) has been awarded as the Apparent High Bidder on Block 749 in Alaska's North Slope Areawide 2012W Lease Sale, with a bid of $171.93 per acre. The purchased block is immediately adjacent to Royale Energy's (ROYL) Block 613, part of 33,736 acres in the ROYL's Colville River holdings and part of the overall 91,060 acre holdings on state acreage on the North Slope. ROYL's overall average cost per acre is $27.21 and the cost of block 613 was $20.10 per acre. COP shares are off 0.25% while ROYL shares are up 13%.

Commodities -

Crude was up 0.94%; likewise, natural gas was up 1.43%. United States Oil Fund (USO) is up 1.3%. United States Natural Gas Fund (UNG) is up 1%.

Gold and silver were firmer, up 0.33% and 0.73% respectively. Among rare metal funds, SPDR Gold Trust (GLD) is up 0.4%; iShares Silver Trust (SLV) is up 1.3%.

Healthcare -

Healthcare ETFs are weaker: Health Care SPDR (XLV), down 0.6%; Vanguard Health Care ETF (VHT), down 0.7%; and iShares Dow Jones US Healthcare (IYH), down 0.88%. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is down 1.39%.

In corporate news, Kips Bay Medical (KIPS) is down 11% after it reported late Tuesday a Q3 net loss of $1.4 million compared with the prior-year period's $1.2 million. On a per share basis, Q3 loss of $0.08 per share was unchanged from the comparable quarter last year. Revenues were $89,000, up from zero in the same period last year.

Power Play -

Consumer -

Consumer ETFs are mixed: Consumer Staples Select Sector SPDR (XLP), down 0.33%; iShares Dow Jones US Consumer Goods (IYK), down 0.6%; and Vanguard Consumer Staples ETF (VDC), down 0.36%.

Retail ETFs are mostly lower: SPDR S&P Retail (XRT), down 0.10%; PowerShares Dynamic Retail (PMR), down 0.44%; and Market Vectors Retail ETF (RTH), now down 0.2%, but touched a new year high of $43.93 earlier.

In sector news, Abercrombie & Fitch (ANF) is steady higher, up near 28% after reporting Q3 EPS of $0.87, up from $0.57 per share in they year ago quarter. Sales were $1.17 bln, up from $1.076 bln last year. The analyst consensus was $0.59 per share in earnings on sales of $1.14 bln, according to Capital IQ. For the full year, the company is projecting earnings in the range of $2.85 to $3.00 per share. The Street view is $2.49 per share.




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.


This article appears in: Investing, Commodities

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



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