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Mid-Day ETF Update: ETFs, Stocks Higher on Possible Resumption of 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 ): +1.0%

iShares China Large-Cap ETF ( FXI ): +1.37%

SPDR S&P 500 ( SPY ): -0.01%

VanEck Vectors Gold Miners ETF ( GDX ): +3.0%

Invesco QQQ Trust, Series 1 ( QQQ ): -0.4%

Broad Market Indicators

Broad-market exchange-traded funds, including IWM and IVV were lower. Actively traded PowerShares QQQ ( QQQ ) was down 0.5%.

US stocks were higher at session's half following headlines that the US and China would restart trade negotiations, and $200 billion in new Chinese tariffs may not go into effect

In economic data news, the wholesale cost of US goods and services fell 0.1% in August -- the first time this year -- versus Econoday forecasts for an incremental 0.2% monthly increase. Core wholesale inflation, which excludes food, energy and trade margins, rose 0.1% in August. Over the past year, wholesale inflation fell to 2.8% from 3.3%.

Looking ahead, the Fed's Beige Book will be released at 2 pm ET.

Power Play: Health Care

Health Care SPDR (XLV) was up 0.3% 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 down 0.4%.

Diffusion Pharmaceuticals (DFFN) rose more than 17% after the biotech firm siad it received US Food and Drug Administration (FDA) approval to enroll patients in an ambulance-based phase 2 clinical trial testing its lead drug, trans sodium crocetinate (TSC), to treat acute stroke. The trial will involve 23 hospitals in Los Angeles and Central Virginia, working closely with approximately 150 emergency medical transport groups.

Winners and Losers

Financial

The Select Financial Sector SPDRs (XLF) was down 0.8%. Direxion Daily Financial Bull 3X shares (FAS) was down 1.4% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was up 1.5%.

First Republic Bank (FRC) fell more than 2% after it said it has priced an underwritten public offering of 2 million shares of its common stock for expected gross proceeds of approximately $204 million. The underwriters have been granted a 30-day option to purchase up to an additional 0.3 million shares. The bank intends to use the net proceeds for general corporate purposes. The offering is expected to close on or about Sept.14, subject to customary closing conditions.

Technology

Technology Select Sector SPDR ETF (XLK) was down 0.4% and other tech funds iShares Dow Jones US Technology ETF (IYW), iShares S&P North American Technology ETF (IGM) and iShares S&P North American Technology-Software Index (IGV) were in the red.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 1.7% and Semiconductor Sector Index Fund (SOXX) was down 1.7%.

Apple (AAPL) fell more than 1% after Allthingsnow.com reported leaked information that the company is set to launch new iPhone models at 1:00 pm ET, to be called the iPhone XS, iPhone XS Max and iPhone XR. A leak on the Apple's website revealed not only the names of the new devices, but a screen update to the Apple Watch and the launch of two differently-sized iPhones. According to information obtained by Allthingsnow.com, the XS display will be 5.8 inches with storage options that range from 64GB to 512GB. The XS Max will have a display of 6.5 inches and similar storage options as the XS. Both come in either silver, black or gold. The XR will have a 6.1 inch display with storage options of either 64GB or 256GB. The XR comes in Black, white, red, yellow, blue and coral.

Energy

Dow Jones US Energy Fund (IYE) was up 0.8% and Energy Select Sector SPDR (XLE) was up 0.8%.

Enphase Energy (ENPH) fell more than 1% after it has expanded its manufacturing agreement to include Flex's facilities in Mexico as part of a mitigation plan for the impending trade agreement between the US and Mexico. Starting in Q2 of 2019, Flex will begin delivering Enphase products produced in Mexico to the US.

Commodities

Crude was up 2.2%. United States Oil Fund (USO) was up 2.0%. Natural gas was down 0.04% while United States Natural Gas Fund (UNG) was down 0.04%.

Gold was down 0.1%. SPDR Gold Trust (GLD) was up 0.7%. Silver was down 0.6%, while iShares Silver Trust (SLV) was up 0.8%.

Consumer

Consumer Staples Select Sector SPDR (XLP) was up 1% and Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones U.S. Consumer Goods (IYK) were firmer.

Consumer Discretionary Select Sector SPDR (XLY) was down 0.2% while retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were weaker.

Macy's (M) fell marginally after it reported plans to hire 80,000 seasonal workers for positions at its Macy's and Bloomingdale's stores, and call, distribution and online- fulfillment centers nationwide for the 2018 holiday season. The company also announced its national hiring event for the year, which will take place on Oct. 18 from 11 am to 7 pm, in local time zones.

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 , FXI , SPY , GDX , QQQ



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