Mid-Day ETF Update: ETFs, Stocks Turn Positive as Wall Street Shakes Off Worries Over Soft CPI, Retail Sales Data

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

SPDR S&P 500 ( SPY ): +0.6%

iShares MSCI Emerging Index Fund ( EEM ): +1.6%

VanEck Vectors Gold Miners ETF ( GDX ): +4.1%

PowerShares QQQ Trust, Series 1 ( QQQ ): +1.2%

SPDR Select Sector Fund - Financial ( XLF ): +1.2%

Broad Market Indicators

Broad-market exchange-traded funds, including IWM and IVV were firmer. Actively traded PowerShares QQQ ( QQQ ) was up 1.2%.

U.S. stocks were higher at session's half, with investors shrugging off a larger-than-expected gain in consumer prices and soft retail sales to trade higher for a fourth consecutive day.

Earlier, the strongest gain in the nominal CPI in five months triggered panic selling in stock futures before investors scrambled to cover shorts after a second look indicated year-over-year inflation remains below the Fed's 2.0% target rate.

The January consumer price index (CPI) rose 0.5% with the core rate 0.3% higher, both hotter than the respective 0.3% and 0.2% expected. The increase in the CPI over the past 12 months remained unchanged at 2.1%.

Retail sales in January, meanwhile, fell by 0.3% -- the largest decline in almost a year -- versus forecasts for a 0.2% increase. The decrease was attributed to declines at auto dealers and home centers. Excluding autos, retail sales were flat last month; stripping out autos and gas, sales slipped 0.2%.

Power Play: Technology

Tech funds Technology Select Sector SPDR ETF (XLK), 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 firmer. Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.6% and Semiconductor Sector Index Fund (SOXX) was up 1.2%.

Carbonite (CARB) rose 17% after the company posted mixed Q4 results while providing better-than-expected guidance for the full year as the company said it would acquire Mozy from Dell Technologies for $145.8 million in cash to expand its customer base and to offer its data protection platform to every segment of the market. Non-GAAP diluted EPS rose to $0.30 in Q4 from $0.12 a year earlier, ahead of analysts' expectations of $0.29 in a Capital IQ poll. Revenue rose 15% to $61.7 million from a year ago, but lagging the $63.90 million estimate. For Q1, it expects GAAP revenue of $61.7 to $63.7 million and non-GAAP EPS of $0.20 to $0.24, against expectations of $0.22 for EPS on revenue of $65 million. Full Year 2018, it forecasts revenue of $294.0 to $304.0 million and non-GAAP diluted EPS of $1.45 to $1.55, compared with estimates of $1.01 for EPS on revenue of $267.06 million.

Winners and Losers


The Select Financial Sector SPDRs ( XLF ) was up 1.2%. Direxion Daily Financial Bull 3X shares (FAS) was up 2.2% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was down 2.3%.

Chimera Investment (CIM) rose 0.9% after the firm reported adjusted Q4 EPS of $0.62 per share, down from $0.65 per share a year ago but in-line with the Capital IQ consensus estimate. On a GAAP basis, the company earned $0.52 per share versus $1.17 per share a year ago. Net interest income of $157.8 million increased from $156.4 million for the previous quarter.


Dow Jones US Energy Fund (IYE) was up 0.2% and Energy Select Sector SPDR (XLE) was up 0.1%.

Scorpio Tankers (STNG) rose more than 3% after the company reported Q4 adjusted loss of $0.14 per share, compared with the prior-year period's $0.18 loss per share. Analysts polled by Capital IQ were expecting loss of $0.08 per share. Revenue was $148.4 million, up from $106.1 million in the same quarter last year. The Street view was for revenue of $148.9 million.


Crude was up 0.5%. United States Oil Fund (USO) was up 0.8%. Natural gas was up 0.2% while United States Natural Gas Fund (UNG) was down 0.3%.

Gold was up 1.6%. SPDR Gold Trust (GLD) was up 1.5%. Silver was up 1.4%, while iShares Silver Trust (SLV) was up 1.5%.

Health Care

Health care funds Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones U.S. Healthcare (IYH), were firmer. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 1.5%

Galmed Pharmaceuticals (GLMD) fell 52% after the company said its top line data from the ARRIVE study did not meet its primary endpoints. The ARRIVE study was conducted to evaluate the safety and efficacy of Aramchol at 600mg/day versus placebo in 50 patients with HIV-associated lipodystrophy and non-alcoholic fatty liver disease. The trial showed no difference between HIV patients receiving Aramchol for 12 weeks when compared with HIV patients in the placebo arm.


Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones U.S. Consumer Goods (IYK) were weaker.

Consumer Discretionary Select Sector SPDR (XLY) and retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were in the red.

Acco Brands (ACCO) rose moire than 16% after the company reported adjusted earnings of $0.48 per diluted share for Q4, up from last year's $0.32, exceeding the Capital IQ consensus of $0.44. Net sales increased 30% to $566.8 million from $437.6 million, beating the mean estimate of $563.3 million. For 2018, the company expects adjusted EPS of $1.33 - $1.37 and sales growth of approximately 2%.

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 , EEM , GDX , QQQ , XLF

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