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Mid-Day ETF Update: ETFs Firmer, Stocks Retreat From Intraday Highs Following Mixed Economic Data

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

SPDR S&P 500 ( SPY ): +0.09%

iShares Russell 2000 Index ( IWM ): -0.68%

iShares MSCI Emerging Markets Index ( EEM ): +0.67%

PowerShares QQQ Trust, Series 1 ( QQQ ): +0.06%

Direxion Daily Small Cap Bear 3X Shares ( TZA ): +1.73%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were higher. Actively traded PowerShares QQQ ( QQQ ) edged higher, up 0.06%.

U.S. stocks retreated from the record highs they hit Tuesday, with S&P 500 and Dow Jones Industrial Average earlier reaching intraday highs. Investors initially snubbed the mixed bag of economic data reported earlier. April retail sales data showed a 0.1% increase - below forecasts. March sales fared better, and was revised to a 1.5% increase from the 1.1% gain initially reported. April import prices were down 0.4%, while export prices dropped 1.0% - both missed expectations. Business inventories for March rose 0.4% compared to an upwardly revised gain of 0.5% the month prior. Finally, small business sentiment data for May was more upbeat, as it rose to its highest level in more than six years, according to National Federation of Independent Business.

Power Play: Consumer

Consumer Staples Select Sector SPDR (XLP) and iShares Dow Jones US Consumer Goods (IYK) touched record highs, while Vanguard Consumer Staples ETF (VDC) neared its all time high.

Among stocks, Elizabeth Arden Inc. (RDEN) was down 20% after it announced plans late Monday to begin a strategic review of the company and its options on top of reporting a wider net loss attributable to shareholders and reduced revenue during the three months ended March 31 compared to year-ago levels. Revenue fell 2.30% year over year to $210.8 million, trailing the Capital IQ consensus by $46.86 million. Net loss attributable to shareholders grew to $26.4 million, or $0.89 per share, from $1.2 million during the year-ago period. Adjusted loss was $0.84, lagging analyst expectations for a loss of $0.01 on a per-share basis. The company also said it has hired Goldman, Sachs & Co. (GS) to assist it with exploring potential strategic alternatives to enhance shareholder value and to accelerate the growth and maximize the value of its brand portfolio. RDEN cautioned there can be no assurance the review will result in any transaction on acceptable terms, adding it does not plan to make additional announcement unless there is a material development.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) was down 0.07%. Direxion Daily Financial Bull 3X shares (FAS) was down 0.25%. Its bearish counterpart, FAZ, was up 0.15%.

Among sector news, Credit Suisse (CS) was off 0.10% following a Reuters report that stated the financial firm could end up with penalties of more than $2 billion to settle tax evasion cases with U.S. authorities. Both New York state financial regulators and the U.S. Justice Department are discussing potential fines with the Swiss bank. Federal prosecutors have also been pressuring Credit Suisse to plead guilty to criminal charges as part of the settlement, Reuters said. The federal government has conducted a long investigation into whether Credit Suisse helped thousands of Americans evade U.S. taxes.

Technology

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. SPDR S&P International Technology Sector ETF (IPK) was flat.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 0.7% and Semiconductor Sector Index Fund (SOXX) was down 0.44%.

In corporate news, Everyday Health (EVDY) was up nearly 17% and was close to its 52-week high after it reported late Monday Q1 GAAP loss of $7.8 million or $1.44 per share, compared with $9.2 million or $1.52 loss per share in the prior-year period. Non-GAAP pro forma net loss was $2.79 million or $0.08 per share, compared with $6.83 million or $1.39 loss per share in the same quarter the previous year. The Capital IQ analyst estimate is for $0.15 loss per share. Revenue was $37.5 million, up 23% from $30.5 million in the same quarter last year. Analysts were expecting revenue of $36.45 million. The company expects Q2 revenue of $40.5 million - $41 million, in line with the consensus of $40.22 million. For fiscal 2014, it sees revenue of $179.3 million - $180 million, above the Street view of $177.30 million.

Energy

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) were in positive territory.

Among stocks, Resolute Energy Corp. (REN) was up 4% after it reported late Monday a Q1 loss of $0.05 per share, missing consensus of $0.00, according to analysts polled by Capital IQ, and unchanged vs. a year ago. Revenue of $90.9 million edged consensus for revenues of $90.4 million, and were higher compared to $78.9 million a year ago.

Commodities

Crude was up 0.73%; United States Oil Fund (USO) was up 0.74%. Natural gas was down 1.15% and United States Natural Gas Fund (UNG) was down 0.78%.

Gold was up 0.03% and silver was up 0.04%. Among rare metal funds, SPDR Gold Trust (GLD) was down 0.10% and iShares Silver Trust (SLV) was down 0.03%.

Health Care

Health Care SPDR (XLV) iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were in firmer. Biotech ETF iShares NASDAQ Biotechnology Index (IBB), however, edged lower, down 0.09%.

In corporate news, Halozyme Therapeutics, Inc. (HALO) was up some 16% after it reported late Monday Q1 revenues of $12 million and a net loss of $26.5 million, or $0.22 per share. This compares to revenues of $11.8 million and a net loss of $19.3 million, or $0.17 per share, for Q1 2013. The mean analyst estimate in the S&P Capital IQ survey was for a loss of $0.15 per share on $13.4 million in revenue. The increase in net loss reflects Halozyme's increased investment in clinical trials for its PEGPH20 and Hylenex proprietary programs, it said in a release.

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

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

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