Mid-Day ETF Update: ETFs Mixed, Stocks Lower Amid Concerns About Coming Earnings Season; Spain Bailout Talk Still Weighing
Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 ( SPY ): +0.01%
PowerShares QQQ Trust, Series 1 ( QQQ ): -0.03%
iShares MSCI Emerging Markets Index ( EEM ): +0.02%
Financial Select Sector SPDR ( XLF ): +0.26%
iShares Russell 2000 Index ( IWM ): +0.04%
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are mixed. Actively traded PowerShares QQQ ( QQQ ) is down 0.03%.
U.S. stocks are shifting to negative territory as market focus now turns to the looming earnings season amid concerns that corporate earnings will be down, if not worse-than-expected. The Eurozone debt crisis is still weighing on matters too as investors mull reports that Spain will request a bailout ahead of a meeting of EU's finance ministers next week. Although automakers generally reported upbeat sales figures for September, this did little to lift the market sentiment.
Winners and Losers
Select Financial Sector SPDRs ( XLF ) is up 0.22%. Direxion Daily Financial Bull 3X shares (FAS) is up 0.34%. Its bearish counterpart, FAZ, is down 0.3%.
Among financial actives, JPMorgan Chase (JPM) is down 0.1% following a report that the New York attorney general's office slapped the bank with a $2 billion civil lawsuit this morning, alleging that investment bank Bear Stearns - before JPMorgan bought the firm in 2008 - committed fraud in the residential mortgage-backed securities operations. JPMorgan said it intends to contest the allegations.
Tech ETFs are mixed: Technology Select Sector SPDR ETF (XLK), down 0.1% and $1 off year highs; iShares Dow Jones US Technology ETF (IYW), down 0.11%; iShares S&P North American Technology ETF (IGM), now down 0.01%; and iShares S&P North American Technology-Software Index (IGV), up 0.32%.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) is down 0.6% while Semiconductor Sector Index Fund (SOXX) is up 0.35%.
SPDR S&P International Technology Sector ETF (IPK) is now up 1.8%.
In sector news, Elbit Systems Ltd. (ESLT) is up 5.25% after it said it was awarded a contract from the Australian Defence Force (ADF) for the supply of battle management systems for the Royal Australian Navy's landing craft. The contract is in an amount that is not material to Elbit Systems.
Dow Jones U.S. Energy Fund (IYE) is down 0.2% while and Energy Select Sector SPDR (XLE) is down 0.07%.
In sector news, Genesis Energy (GEL) is down 3.5% after it announced the commencement of an underwritten secondary public offering of 6,000,000 common units representing limited partner interests by Quintana Capital Group II, L.P. and certain of its affiliates and certain other selling unitholders. Genesis will not receive any of the proceeds from the common units sold by the selling unitholders and the number of outstanding common units will remain unchanged.
Crude was up 0.18% while natural gas was up 0.06%. United States Oil Fund (USO) is up 0.1%. United States Natural Gas Fund (UNG) is up 1.5%.
Gold and silver were down 0.16% and 0.42% respectively. Among rare metal funds, SPDR Gold Trust (GLD) is down 0.2%; iShares Silver Trust (SLV) is down 0.3%.
Healthcare ETFs are firmer, testing their year highs: Health Care SPDR (XLV), up 0.3%; Vanguard Health Care ETF (VHT), up 0.3%; and iShares Dow Jones US Healthcare (IYH), up 0.4%, touching a new year high of $85.68. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is up 0.8%, also pushing near its year high.
In corporate news, Eli Lilly & Co. (LLY) is up 0.8% after hitting a new 52-week high earlier today, on news that an potential treatment for patients with type 2 diabetes showed positive results in recent studies. According to the company, there was a 48% reduction in nighttime hypoglycaemia in a phase 2 study, and it also was shown to reduce the anxiety and fear associated with the incidents of low-blood sugar. Lilly and its Germany-based partner Boehringer Mannheim GmbH plan to present more details at the annual meeting of the European Association for the Study of Diabetes in Berlin this week. Lilly and Boehringer Ingelheim formed an alliance in January of 2011 to jointly develop and commercialize several diabetes drugs.
Power Play -
Consumer ETFs are slipping into negative terrritory in mid-day action: Consumer Staples Select Sector SPDR (XLP), down 0.22% from near year highs; iShares Dow Jones US Consumer Goods (IYK), now up 0.01%; and Vanguard Consumer Staples ETF (VDC), also off 0.01%, having earlier reached a new year high of $92.70.
Retail ETFs are weaker: SPDR S&P Retail (XRT), down 0.7%; PowerShares Dynamic Retail (PMR), down 0.6%; and Market Vectors Retail ETF (RTH), down 0.40% having touched a new year high of $45.14.
Auto makers reported sales figures for the month: Toyota (TM), down 0.2%, reported that U.S. auto sales climbed 42% in September, topping expectations from car-shopping website Edmunds.com; General Motors (GM), up 3.1%, saw a 1.5% increase in September sales; Ford Motor (F), down 1.41%, reported that U.S. new-vehicle sales edged 0.1% lower. Chrysler Group LLC reported its U.S. auto sales rose 12% for the month.
On the whole, sales rose for most automakers in September, with Toyota and Volkswagen leading the pack with more than 30% increase in sales from a year earlier.
Global X Auto ETF (VROM) is up 0.16%.