Referenced Stocks

Mid-Day ETF Update: ETFs Weaker; Stocks Give Up Gains as Street Feels Pain in Spain

By Midnight Trader October 12, 2012, 01:15:08 PM EDT

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

SPDR S&P 500 ( SPY ): -0.37%

Financial Select Sector SPDR ( XLF ): -1.5%

iShares MSCI Emerging Markets Index ( EEM ): -0.34%

iShares Russell 2000 Index ( IWM ): -0.8%

PowerShares QQQ Trust, Series 1 ( QQQ ): flat

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are mostly lower. Actively traded PowerShares QQQ ( QQQ ) is flat.

U.S. stocks are slipping into the red, losing modest earlier gains brought on by an unexpected rise in the preliminary consumer sentiment index in October, and lukewarm producer price data, as well as better-than-expected results from JP Morgan (JPM). Market sentiment soured as investors again started to fret about whether or not Spain will request a financial bailout, which would be a prerequisite before the European Central Bank could purchase debt to ease the country's borrowing costs.

Winners and Losers

Technology -

Tech ETFs are mostly mixed to lower: Technology Select Sector SPDR ETF (XLK), down 0.1%; iShares Dow Jones US Technology ETF (IYW), flat; iShares S&P North American Technology ETF (IGM), down 0.06%; and iShares S&P North American Technology-Software Index (IGV), up 0.05%.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) are down 1.2% (taking it closer to year lows) and 0.5% respectively. SPDR S&P International Technology Sector ETF (IPK) is down 0.47%.

In sector news, Advanced Micro Devices (AMD) is now down 10% and has hit year lows after it lowered its Q3 revenue guidance, now expecting to see a decline of 10%, from the prior guidance of 1% decrease, plus or minus 3%, sequentially. AMD now expects Q3 gross margin to be 31%, less than the previous expectation of 44%, primarily due to an inventory write-down of $100 million due to lower anticipated future demand for certain products. Operating expenses for the quarter are expected to decline 7% sequentially as a result of tightly controlled expenses in the quarter.

Energy -

Dow Jones U.S. Energy Fund (IYE) is down 1%; Energy Select Sector SPDR (XLE), down 1.1%.

In energy news, Alpha Natural Resources (ANR) is down near 9%. Shares were downgraded to Neutral from Buy at Nomura, and downgraded to Sell from Buy at CLSA. CLSA also cut the target price to $7 from $8.

Commodities -

Crude up 0.6% while natural gas was down 1.61%. United States Oil Fund (USO) is down 1.2%. United States Natural Gas Fund (UNG) is down 1.4%.

Gold was down 0.39% and while December silver is down 1.08%. Among rare metal funds, SPDR Gold Trust (GLD) is down 0.46%; iShares Silver Trust (SLV) is down 0.7%.

Healthcare -

Healthcare ETFs Health Care SPDR (XLV), now down 0.02%; Vanguard Health Care ETF (VHT), down 0.3%; and iShares Dow Jones US Healthcare (IYH), now down 0.1%. Biotech ETF iShares NASDAQ Biotechnology Index (IBB), down 0.6%.

In corporate news, NPS Pharmaceuticals (NPSP) is up 14.7% and touched fresh new year highs after the U.S. Food and Drug Authority (FDA) released briefing documents ahead of its October 16 Advisory Committee meeting for NPSP's Gattex.

Consumer -

Consumer ETFs are firmer: Consumer Staples Select Sector SPDR (XLP), up 0.06% and nearer year highs; iShares Dow Jones US Consumer Goods (IYK), up 0.44%; and Vanguard Consumer Staples ETF (VDC), up 0.1%.

Retail ETFs are lower: SPDR S&P Retail (XRT), down 0.6%; PowerShares Dynamic Retail (PMR), down 0.60%; and Market Vectors Retail ETF (RTH), down 1.85% and nearer year lows.

In sector news, Best Buy (BBY) is down 0.56% following a Wall Street Journal report that the retail giant is planning some "web hardball", with a plan to match prices of Internet competitors like Amazon.com (AMZN), a defensive move to stop shoppers from browsing the stores then heading home to buy the same products online.

Power Play -

Financial -

Select Financial Sector SPDRs ( XLF ) is down 1.53%. Direxion Daily Financial Bull 3X shares (FAS) is down 3.8%. Its bearish counterpart, FAZ, is up 4%.




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



Latest News Video



From Our Trusted News Source





Most Active by Volume:

Company Last Sale Change Net / %
BAC $ 13.18 0.03  0.23%
P $ 18.74 1.58  9.21%
HPQ $ 24.60 0.26  1.05%
PG $ 81.75 3.05  3.88%
CRM $ 42.36 3.33  7.29%
INTC $ 23.80 0.25  1.04%
MSFT $ 34.04 0.11  0.32%
FB $ 24.81 0.25  1.00%