Mid-Day ETF Update: Broad Market ETFs Dip on Concern Over Stimulus Withdrawal
Active broad market exchange-traded funds in Friday's regular session:
iShares MSCI Japan Index Fund ( EWJ ) -2.4%
SPDR S&P 500 ( SPY ): -0.6%
iShares MSCI Emerging Markets Index ( EEM ): -1.36%
iPath S&P 500 VIX Short Term Futures ( VXX ) +0.75%
Select Sector SPDR Fund Financial ( XLF ) -0.56%
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and others, were all showing modest losses at mid-day. Actively traded PowerShares QQQ (QQQ) was down 0.46%.
U.S. stocks were lower at the mid-session despite better-than-expected durable goods orders, amid concern the Federal Reserve may soon begin to withdraw economic stimulus measures.
U.S. duarble-goods orders rose 3.3% for the month of April, compared with the forecast of a 1.4% rise, according to economists surveyed by Marketwatch. Excluding the transportation sector, orders rose 1.3%. Shipments of core capital goods, however, slipped 1.5%. Some earnings misses for household names such as Abercrombie & Fitch and Sears are also hitting sentiment.
Winners and Losers
Select Financial Sector SPDRs ( XLF ) was down 0.4%. Direxion Daily Financial Bull 3X shares (FAS) was down 1.3%. Its bearish counterpart, FAZ, was up 1.18%.
Among financial stocks, HSBC (HBC) was down 1.9%. The bank has posited a deal for $1.9 billion to settle money laundering charges from U.S. authorities, who say HSBC allowed terrorists to funnel millions of dollars through the bank. But a judge is considering cancelling the agreement, The Telegraph reports. Meanwhile, U.S. Department of Justice said the judge does not need to sign off on the deal.
Tech ETFs Technology Select Sector SPDR ETF (XLK) was down 0.35%, iShares Dow Jones US Technology ETF (IYW) is off 0.58%, iShares S&P North American Technology ETF (IGM) was down 0.4% and iShares S&P North American Technology-Software Index (IGV) has dropped 1.2%.
Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were both in the red.
SPDR S&P International Technology Sector ETF (IPK) was down 0.7%.
In sector news, Marvell Technology (MRVL) reversed early gains and was down 0.18% after it reported Q1 revenues of $734 million, vs. the analyst consensus of $721.5 million on Cap IQ. EPS was $0.19, vs. expectations of $0.14 per share. For Q2, co. guides for revs of $770-$810 million and EPS of a gain of $0.19 to a loss of $0.02. The Street is at $762.9 million in revs and earnings of $0.18 per share.
Dow Jones U.S. Energy Fund (IYE) was 0.8% lower. Energy Select Sector SPDR (XLE) was down 1.12%.
In sector news, InterOil (IOC) was down 5.3% at $88.54 after surging to a 52-week high of $106.31 in early trading after it said it and its joint venture partner, Pacific LNG Group, have entered into exclusive negotiations with ExxonMobil Papua New Guinea Ltd., a subsidiary of ExxonMobil (XOM), on the development of Petroleum Retention License 15 (PRL 15), which comprises the Elk and Antelope fields in the Gulf Province of Papua New Guinea. The transaction has been discussed with the Government of Papua New Guinea and any future agreement will be subject to their final approval.
July crude is down 0.5%; July natural gas was down 0.53%. United States Oil Fund (USO) was down 0.63%. United States Natural Gas Fund (UNG) was down 0.35%.
June gold is down 0.38% and silver for July delivery was barely changed. Among rare metal funds, SPDR Gold Trust (GLD) was down 0.28%; iShares Silver Trust (SLV) was down 0.45%.
Healthcare ETFs Health Care SPDR (XLV), Vanguard Health Care ETF (VHT), and iShares Dow Jones US Healthcare (IYH) were showing losses of about 0.5%. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was also down 0.88%.
Vanda Pharmaceuticals (VNDA) shares were up 11% and hit a 52-week high of $8.13 after the Tech Council of Maryland named the company Life Science Firm of the Year, outlining its work on a treatment for Non-24-Hour Disorder, a rare condition for which there are currently no FDA approved drugs.
Consumer ETFs Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were all showing modest gains.
Retail ETFs SPDR S&P Retail (XRT) was down 1.2%, PowerShares Dynamic Retail (PMR) was off 0.33%, and Market Vectors Retail ETF (RTH) was down 0.08%.
In sector news, Abercrombie & Fitch (ANF) was down 10.5% after it reported a 1Q13 EPS loss of $0.09, below the street's estimate of $0.05, per Capital IQ. Management notes that the quarter was negatively impacted by an "inventory shortage," which was down by 23% in the quarter.
Power Play - Morningstar Small Core Index Fund (JKJ) was 0.95% weighted to Abercrombie & Fitch. It's down 0.64%.