Mid-Day ETF Update: ETFs Weaker, Stocks Turn Lower After Positive Open in Storm's Wake

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

SPDR S&P 500 ( SPY ): -0.28%

iShares MSCI Emerging Markets Index ( EEM ): -0.25%

Financial Select Sector SPDR ( XLF ): +0.25%

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.75%

iPath S&P 500 VIX Short Term Futures ( VXX ): +2.4%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are largely mixed. Actively traded PowerShares QQQ ( QQQ ) is down 0.75%.

U.S. stocks are sinking lower, losing early gains made after the markets opened following a two-day shutdown due to Hurricane Sandy. The stream of earnings reports had initially lifted stocks, with upbeat results from Ford (F), General Motors (GM), and BP (BP), but economic data is now weighing on sentiment. The Chicago PMI data for October rose to 49.9% but stayed below 50%, which indicated that the index contracted for the second straight month. Earlier, the Labor Department reported that the employment cost index rose 0.4% in Q3, slightly below Q2's increase of 0.5%.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) is up 0.22%. Direxion Daily Financial Bull 3X shares (FAS) has turned positive and is now up 0.2%. Its bearish counterpart, FAZ, has turned slightly negative.

Among financial actives, UBS (UBS) is up 13% and has hit 52 week highs after it reported yesterday a Q3 loss of CHF 0.58 per share, compared with the prior-year period's CHF 0.27 earnings per share. This may not be comparable to the Capital IQ GAAP consensus estimate of $0.22 per share. The bank said that "all of its businesses achieved increased profitability" in the quarter on an adjusted basis. It also confirmed reports that it will be reducing its workforce by 10,000 positions.

Technology -

Tech ETFs are mixed: Technology Select Sector SPDR ETF (XLK), down 0.5%; and iShares Dow Jones US Technology ETF (IYW), down 0.4%. On the other hand, iShares S&P North American Technology ETF (IGM) and iShares S&P North American Technology-Software Index (IGV) are higher, up 0.42% and 0.02%, respectively.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) is now down 0.26% while Semiconductor Sector Index Fund (SOXX) is down 0.3%.

SPDR S&P International Technology Sector ETF (IPK) is up 2.01%.

In sector news, Riverbed Technology (RVBD) and OPNET Technologies (OPNT) announced that Riverbed has entered into a definitive agreement to acquire OPNET for $43 per share in cash and stock, representing an equity value of $1 billion and an enterprise value of $921 million. RBVD shares are down 19% while OPNT shares are up 29%.

Energy -

Dow Jones U.S. Energy Fund (IYE) is off 0.7%; Energy Select Sector SPDR (XLE) is down 0.6%.

Among stocks, Westport (WPRT) has trimmed earlier losses and is now down near 5% after it reportedly reduced its full year revenue guidance to a range of $340 to $350 mln, down from its prior view of $400 to $425 mln, according to a Dow Jones brief.

Commodities -

Crude was up 1.21%; likewise, natural gas was up 0.44%. United States Oil Fund (USO) is up 0.1%. United States Natural Gas Fund (UNG) is up 0.14%.

Gold was up 0.71%; silver was up 1.65%. Among rare metal funds, SPDR Gold Trust (GLD) is up 0.44%; iShares Silver Trust (SLV) is up 0.58%.

Healthcare -

Healthcare ETFs are weaker at mid-day: Health Care SPDR (XLV), down 0.84%; Vanguard Health Care ETF (VHT), down 1%; and iShares Dow Jones US Healthcare (IYH), down 1%. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is also lower, down 2.2%.

In corporate news, Impax Laboratories (IPXL) is down near 13%. The specialty pharmaceutical company reported Q3 revenues of $145.6 mln, missing the Capital IQ consensus of $161.43 mln. It posted earnings of $0.48 per share, meeting the analyst estimate of $0.48. The company expects Q4 revenues to decline 15% to 20% quarter-over-quarter.

Consumer -

Consumer ETFs are higher: Consumer Staples Select Sector SPDR (XLP), up 0.1%; iShares Dow Jones US Consumer Goods (IYK), up 0.3%; and Vanguard Consumer Staples ETF (VDC), up 0.2%.

In sector news, General Motors (GM) is now up 8% after reporting Q3 EPS of $0.85, handily beating estimates for $0.60. Revenue came in at $37.6 billion, ahead of the $35.71 billion consensus.

Power Play -

Industrial -

Industrial ETFs are firmer: Vanguard Industrials (VIS), up 0.3%; iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ), up 0.4%; and Select Sector SPDR-Industrial (XLI), up 0.4%.

Home improvement and storm preparation stocks continue to gap higher, in the aftermath of Hurricane Sandy. Among these, Generac Holdings (GNRC) is up 21% and has hit 52 week highs following upbeat earnings results and guidance. It reported Q3 earnings of $0.78 per share, ex one-time items, versus the Capital IQ consensus of $0.75. Revenues were $300.6 mln, versus the analyst estimate of $297.75 mln.

The company raises its FY12 adjusted EPS guidance to $2.95 - $3.00, from the prior range of $2.65 - $2.70. Analysts are looking for EPS of $2.70. The company also said that because of the current major power outage activity, it is raising its FY12 sales growth guidance to the low-40% range over the prior year, which represents an increase from the low-30% growth rate previously expected. Its adjusted FY12 EBITDA is now expected to increase in the mid-40% range over the prior year, which is an increase from the prior guidance of a mid-30% growth rate.



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 , QQQ , SPY , VXX , XLF

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