Mid-Day ETF Update: ETFs, Stocks In the Red; Dow Sees Worst Decline in More than Three Months

Shutterstock photo

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

SPDR S&P 500 ( SPY ): -1.5%

iPath S&P 500 VIX ST Futures ETN ( VXX ): +6.4%

Invesco QQQ Trust, Series 1 ( QQQ ): -2.1%

iShares MSCI Emerging Index Fund ( EEM ): -2%

SPDR Select Sector Fund - Financial ( XLF ): -1.3%

Broad Market Indicators

Broad-market exchange-traded funds, including IWM and IVV were lower. Actively traded PowerShares QQQ ( QQQ ) was down 2.1%.

US stocks were sharply lower at session's half as selling pressure continued to sweep across US and European equity markets with worries about an environment of higher interest rates fueling a 400+ point drop in the Dow Jones Industrial Average -- the blue chip index's worst day in more than three months.

The feeding frenzy in the tech sector continued leaving the Nasdaq more than 2% lower and flirting with support at its 200-day moving average for the first time since February.

In economic data news, wholesale inventories climbed 1.0% versus forecasts for an increase of 0.8%, with sales up 0.8% in August. The August inventory number was up 0.8% in the Advance print. There was no revision to July's 0.6% inventory gain, though July sales were nudged up to 0.2% from unchanged.

Earlier, the producer price index for September rose 0.2%, matching expectations. In the previous month, producer prices fell 0.1%. Excluding food, energy and trade margins, the so-called core rate of wholesale inflation rose 0.4%.

Power Play: Technology

Technology Select Sector SPDR ETF (XLK) was down 2.9% 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 2.3% and Semiconductor Sector Index Fund (SOXX) was down 1.9%.

Imperva (IMPV) rose nearly 28% following an announcement that the cybersecurity firm will be bought by technology investment company Thoma Bravo in a $2.1 billion deal. When the $55.75-per-share transaction closes, Redwood Shores, Calif.-based Imperva will be privately held, "with the flexibility to focus on execution and drive to be a world-class profitable growth company," according to a statement on Wednesday. Imperva's board of directors has already approved the deal. Imperva will join a slate of Thoma Bravo investments including Compuware Corp., a software firm, the McAfee cybersecurity company, and TravelClick, which makes software for hotels.

Winners and Losers


The Select Financial Sector SPDRs ( XLF ) was down 1.1%. Direxion Daily Financial Bull 3X shares (FAS) was down 3.6% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was up 3.7%.

AllianceBernstein Holding L.P (AB) fell more than 1% after it reported that its preliminary assets under management decreased to $550 billion during September 2018 from $551 billion at the end of August. The company attributed the 0.2% decline to market depreciation, partially offset by total firmwide net inflows.


Dow Jones US Energy Fund (IYE) was down 1.8% and Energy Select Sector SPDR (XLE) was down 1.7%.

Talos Energy (TALO) fell more than 2% after reports that a consortium headed by Talos is considering a partnership with Mexican state-run company Pemex to jointly develop the Zama project in the southern portion of the Gulf of Mexico.


Crude was down 2.2%. United States Oil Fund (USO) was down 2%. Natural gas was down 0.2% while United States Natural Gas Fund (UNG) was down 0.5%.

Gold was up 0.1%. SPDR Gold Trust (GLD) was down 0.03%. Silver was down 0.6%, while iShares Silver Trust (SLV) was down 0.6%.


Consumer Staples Select Sector SPDR (XLP) was up 0.03% and Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones U.S. Consumer Goods (IYK) inched higher.

Meanwhile, Consumer Discretionary Select Sector SPDR (XLY) was down 1.7% and retail funds SPDR S&P Retail (XRT) and Market Vectors Retail ETF (RTH) were weaker.

Fastenal Company (FAST) fell nearly 6% after it reported Q3 earnings of $0.69 per share, up from $0.50 in the same period a year ago and exceeding the estimate of $0.67 from analysts polled by Capital IQ. For the quarter ended Sept. 30 total revenue of $1.28 billion was up from $1.13 billion in the same period a year ago and just beat the Street projection of $1.27 billion.

Health Care

Health Care SPDR (XLV) was down 0.6% 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 1.1%.

Neovasc (NVCN) rose more than 25% after the company said the US Food and Drug Administration has granted Breakthrough Device designation to 'Reducer,' a medical device for the treatment of refractory angina, which is not currently approved for commercial sale in the US.

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: SPY , QQQ , EEM , XLF

More from MT Newswires


MT Newswires

MT Newswires

Market News, Commodities

Research Brokers before you trade

Want to trade FX?