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Mid-Day ETF Update: ETFs, Stocks Higher on Continued Optimism for US-China Trade Talks


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Active broad-market exchange-traded funds in Wednesday's regular session:

iShares MSCI Emerging Index Fund ( EEM ): -0.7%

SPDR S&P 500 ( SPY ): +0.3%

Invesco QQQ Trust, Series 1 ( QQQ ): +0.3%

SPDR Select Sector Fund - Financial ( XLF ): +0.6%

iShares China Large-Cap ETF ( FXI ): +0.8%

Broad Market Indicators

Broad-market exchange-traded funds, including IWM and IVV were mixed. Actively traded PowerShares QQQ ( QQQ ) was up 0.3%.

US stocks continued to trade higher at the session's half, as recent presidential comments on the ongoing US-China trade talks drove market optimism.

President Donald Trump signaled there could be more flexibility on the trade-deal deadline if the two sides were making enough progress.

In economic news, the consumer price index (CPI) headline was flat in January, against consensus for a 0.1% rise, while the core was up in line with expectations at 0.2%.

Power Play: Technology

Technology Select Sector SPDR ETF (XLK) was up 0.3%, while tech funds iShares Dow Jones US Technology ETF (IYW) and iShares S&P North American Technology ETF (IGM) were in the green.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 1.1% and Semiconductor Sector Index and (SOXX) was up 0.6%.

Diebold Nixdorf (DBD) was up nearly 39% after i t report ed a wider-than-expected loss in Q4 and revenue that topped analysts' forecasts, and issued revenue guidance for fiscal 2019 that is below Street estimates. The company, which makes point-of-sales terminals, posted an adjusted loss of $0.08 per share, compared with earnings per share of $0.39 in the prior year. Analysts polled by Capital IQ were expecting breakeven earnings. Revenue was $1.29 billion, up from $1.25 billion in the same quarter last year. The Street view was for revenue of $1.22 billion. The company expects fiscal 2019 revenue of $4.4 billion to $4.5 billion. The Street view is for revenue of $4.56 billion.

Winners and Losers

Financial

The Select Financial Sector SPDRs ( XLF ) was up 0.6%. Direxion Daily Financial Bull 3X shares (FAS) was up 1.5% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was down 1.4%.

Chimera Investment Corporation (CIM) fell nearly 3% after it reported Q4 adjusted earnings of $0.58 per share, down from $0.62 in the same period a year ago and in line with the average estimate of analysts polled by Capital IQ. Q4 net interest income was $594.2 million, down from $606 million in the same period a year ago.

Energy

Dow Jones US Energy Fund (IYE) was up 0.9% and Energy Select Sector SPDR (XLE) was up 9%.

Teck Resources (TECK) fell 5% after it said that its Q4 adjusted EPS dropped to CAD0.86 ($0.65) from CAD1.16 a year ago, falling below the CAD0.99 average estimate from analysts polled by Capital IQ. The miner attributed the lower earnings primarily to a decline in commodity prices compared with year-ago figures. Revenue for the most recent period, however, rose to CAD3.25 billion from CAD3.16 billion in Q4 2017. The CapIQ revenue consensus was CAD3.28 billion.

Commodities

Crude was up 2.2%. United States Oil Fund (USO) was up 2%. Natural gas down 3.8% while United States Natural Gas Fund (UNG) was down 2.5%.

Gold was up 0.03%. SPDR Gold Trust (GLD) was up 0.1%. Silver was down 0.3%, while iShares Silver Trust (SLV) was down 0.1%.

Consumer

Consumer Staples Select Sector SPDR (XLP) was up 0.1% and Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones U.S. Consumer Goods (IYK) were higher.

Consumer Discretionary Select Sector SPDR (XLY) was up 0.6% and retail funds SPDR S&P Retail (XRT) and Market Vectors Retail ETF (RTH) were mixed.

Hilton Worldwide Holdings (HLT) rose some 6% after it reported Q4 adjusted earnings of $0.79 per share, compared to $0.53 per share in the year-ago quarter. Analysts polled by Capital IQ were expecting adjusted EPS of $0.69. Total revenues were $2.29 billion, which is up from $2.07 billion in the same period last year. That also topped the CapIQ estimate of $2.26 billion. The company said that it expects Q1 adjusted earnings of $0.73 and $0.78 per share. For FY2019, it sees adjusted earnings of $3.66 to $3.78 per share. The Street view is for adjusted EPS of $0.59 in Q1 and for $3.17 in 2019. It also said that the board has authorized a regular quarterly cash dividend of $0.15 per share of common stock to be paid on or before March 29 to shareholders on record as of March 1.

Health Care

Health Care SPDR (XLV) was marginally higher and other health care funds including Vanguard Health Care ETF (VHT) and iShares Dow Jones U.S. Healthcare (IYH) were lower. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.4%

Ironwood Pharmaceuticals (IRWD) was up nearly 10% after it reported a Q4 non-GAAP net loss per share of $0.02, compared to a net loss of $0.14 per share in the year-ago quarter, beating the Capital IQ consensus for a loss of $0.19. The company posted total revenue of $130.7 million, compared with $94.2 in the year-earlier period, topping the consensus revenue estimate of $96.6 million. For 2019, Ironwood said it expects total revenue to be in the $370 million to $390 million range, straddling the average analyst forecast of $373.3 million. Ironwood also said it expects to complete its separation into two publicly traded companies, Ironwood and Cyclerion, which was announced in May 2018, in the first half of 2019 and that it will be tax-free to Ironwood shareholders. The company said it started a workforce reduction of 35 employees primarily based in the home office. The company's field-based sales force and employees expected to go to Cyclerion are excluded from the job cuts.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.





This article appears in: Investing , ETFs
Referenced Symbols: EEM , SPY , QQQ , XLF , FXI



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