Mid-Day ETF Update: ETFs, Stocks Turn Lower as Gains Fizzle Out Following Downbeat Housing Data
Active broad market exchange-traded funds at mid-day:
SPDR S&P 500 ( SPY ): +0.19%
iPath S&P 500 VIX Short Term Futures TM ( VXX ): -1.37%
iShares Russell 2000 Index ( IWM ): -0.04%
PowerShares QQQ Trust, Series 1 ( QQQ ) +0.8%
iShares MSCI Japan Index ( EWJ ) -0.3% from near year highs
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and others, were mixed to lower. Actively traded PowerShares QQQ ( QQQ ) was up 0.8%.
U.S. stocks slipped further into negative territory as the hoped for rebound from broad weakness last week didn't materialize. It was a week analysts have described as the worst for equities so far this year. Early optimism fizzled after the National Association of Realtors reported that sales of previously owned homes declined 0.6% in March. Stocks had logged modest earlier gains following news from the G-20 meeting late Friday, with finance ministers and central bank governors of member countries saying they are pushing for more efforts to ramp up global growth and spur demand. The tech sector, which is slightly outperforming the broader market, could continue to see active trade as Texas Instruments (TXN), STMicroelectronics (STM) and Netflix (NFLX) are due to report earnings in the after hours session.
Winners and Losers
Select Financial Sector SPDRs (XLF) was down 0.2% from near year highs. Direxion Daily Financial Bull 3X shares (FAS) was down 0.5%. Its bearish counterpart, FAZ, was up 0.5%.
Among financial stocks, Bank of Hawaii (BOH) was down 2.2% after it reported diluted earnings per share of $0.81 for Q1 2013, down from $0.95 in the same quarter last year. Net income for Q1 2013 was $36.0 million, down $7.8 million from net income of $43.8 million in Q1 2012. Analysts had expected about $0.87 per share. Net interest income, on a taxable-equivalent basis, for Q1 2013 was $91.0 million, down $9.0 million from net interest income of $100.0 million in Q1 2012 due to a continuation of the low interest rate environment.
Tech ETFs were mostly higher: Technology Select Sector SPDR ETF (XLK), up 0.65%; iShares Dow Jones US Technology ETF (IYW), up 0.7%; iShares S&P North American Technology ETF (IGM), down 0.1%; and iShares S&P North American Technology-Software Index (IGV), up 0.4%.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.9% and Semiconductor Sector Index Fund (SOXX) was up 0.50%.
SPDR S&P International Technology Sector ETF (IPK) was down 0.93%.
In sector news, Microsoft (MSFT) was up 4% after CNBC reported that ValueAct Capital Partners was taking a $2 billion stake in the tech giant.
Dow Jones U.S. Energy Fund (IYE) was up 0.7% and Energy Select Sector SPDR (XLE) was up 0.8%.
In sector news, ABB (ABB) is down 1.1% after it announced that its Board of Directors agreed to acquire Power-One (PWER), provider of renewable energy and power conversion and management solutions, for $6.35 per share in cash or $1 billion equity value. PWER shares continued to surge in mid-day trading, up 56.93% to $6.34 and logging a year high $6.50.
Crude was firmer up 0.53%; natural gas has turned negative, down 3%. United States Oil Fund (USO) was up 0.8%. United States Natural Gas Fund (UNG) was down 3%.
Gold was up 1.5% and silver was up 0.9%. Among rare metal funds, SPDR Gold Trust (GLD) was up 1.6%; iShares Silver Trust (SLV) was firmer, up 0.9%.
Healthcare ETFs were mostly higher: Health Care SPDR (XLV), up 0.3% and nearer year highs; Vanguard Health Care ETF (VHT), up 0.3%, with a 52-week high of $86.08; and iShares Dow Jones US Healthcare (IYH), up 0.3% and with a 52-week high of $100.45. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is higher, up 0.5% with a new 52-week high of $173.98.
In corporate news, RCA BioPharma (ABIO) was up nearly 50% at $2.93, having earlier touched a day high $3.58 after the company said it has entered into an agreement with Medtronic, Inc. (MDT) to improve the treatment of chronic diseases, including cardiac rhythm disorders, to collaborate on ARCA's proposed clinical trial, known as GENETIC-AF, of its lead developmental drug Gencaro. MDT shares were up 0.1%.
Consumer ETFs were at or near year highs: Consumer Staples Select Sector SPDR (XLP), up 0.02% having touched a new 52-week high of $41.09; iShares Dow Jones US Consumer Goods (IYK), up 0.19% to near year high sand Vanguard Consumer Staples ETF (VDC), up 0.04% with a new year high.
In sector news, Hasbro (HAS) was up 2.6% but off 52 week highs hit earlier after it reported its first quarter 2013 adjusted net income rose 30% to $6.6 million, or $0.05 per share. Revenues increased 2% to $663.7 million. Analysts expected earnings per share of $0.04 and revenues of $638.8 million.
Power Play -
Industrial ETFs were weaker, underperforming the broader market: Vanguard Industrials (VIS) down 0.34%; iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ), down 0.13%; and Select Sector SPDR-Industrial (XLI), down 0.15% .
In M&A news, Ceco Environmental (CECO) is down 4% and has hit new year lows after it announced plans to acquire Met-Pro Corp for $$13.75 which will be split between $6.50 in cash to Met-Pro shareholders combined with $7.25 in CECO stock.
Under the terms of the agreement, Met-Pro's shareholders may elect to exchange each share of Met-Pro common stock for either $13.75 in cash and/or shares of CECO common stock having an equivalent value based on the volume weighted average trading price of CECO common stock for the 15-trading day period ending on the date immediately preceding the closing of the acquisition.
MPR shares are up nearly 40%, trimming earlier gains of almost 50%, and touching a new 52-week high of $13.38.