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Mid-Day ETF Update: ETFs Lower, Stocks Mixed to Lower as Crude Oil Continues Decline

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

Direxion Daily Junior Gold Miners Index Bull 3X Shares ( JNUG ): -12.2%

Direxion Daily Gold Miners Index Bull 3X Shares ( NUGT ): +4.3%

VanEck Vectors Gold Miners ETF ( GDX ): +1.5%

SPDR S&P 500 ( SPY ): -0.2%

SPDR Select Sector Fund - Financial ( XLF ): -0.4%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were weaker. Actively traded PowerShares QQQ (QQQ) was up 0.4%.

U.S. stocks were lower at session's half as crude oil continued to decline, triggered by concerns that ramped-up U.S. production will offset production cuts proposed by the Organization of the Petroleum Exporting Countries late last year. On Friday, the Baker Hughes rig count of U.S. oil and natural gas rigs increased for a 10th consecutive week, dragging down the price of crude oil for a second straight week.

Economic data was light with only the labor market conditions index which declined to 1.2 in December from 1.5 the month prior.

Power Play: Health Care

Health care funds were flat to slightly higher, outperforming the broader market. Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were firmer. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.9%.

ARIAD Pharmaceuticals (ARIA) was up 72.7% to its highest level in more than four years after the company agreed to be acquired by Japan's Takeda Pharmaceutical for $24 per share in cash, for a total enterprise value of approximately $5.2 billion. The acquisition price represents a 75% premium over ARIAD's closing price on Jan. 6. Under the terms of the deal, ARIAD stockholders will receive $24 in cash for each share of ARIAD common stock they own. The transaction has been approved unanimously by the boards of directors of both companies, and is expected to close by the end of February. The stock recently traded up 72.9% at $23.76, after earlier hitting $23.81, the highest since 2012.

Winners and Losers

Financial

Select Financial Sector SPDRs ( XLF ) was down 0.3%. Direxion Daily Financial Bull 3X shares (FAS) was down 0.8%, while its bearish counterpart, FAZ, was up 0.9%.

Global Net Lease (GNL) was down 1.7% after it said it appointed Nicholas Radesca as chief financial officer, effective Jan. 20, succeeding Timothy Salvermini. Radesca has experience in senior accounting, tax and financial reporting and leadership roles at various public companies.

Technology

Tech funds were higher, in line with the broader market. Technology Select Sector SPDR ETF (XLK) hit a new 52-week high. 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 positive territory. Meanwhile, SPDR S&P International Technology Sector ETF (IPK) was flat.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 1.6% and Semiconductor Sector Index Fund (SOXX) was up 1.2%.

Ultra Clean Holdings (UCTT) was up 10.8% after saying it expects its Q4 revenue to exceed its own guidance. The company expects Q4 revenue to be $173.0 million, compared with previously announced guidance in the range of $146.0 million to $151.0 million, and compared with the analyst average estimate of $149 million. The company expects to release its Q4 and full year's results on Feb. 22 after market close.

Energy

Dow Jones U.S. Energy Fund (IYE) was down 1.3% and Energy Select Sector SPDR (XLE) was down 1.2%.

Entergy (ETR) was down 1.9% after the company said it expects to incur about $1.5 billion after tax in Q4 in non-cash impairment charges as a result of an accord to shut down two operating units at the Indian Point Energy Center in 2020 to 2021. The company also expects to incur about $180 million relating to severance and employee retention costs. Entergy reached an accord with New York State to close the nuclear facilities early, due to sustained low wholesale energy prices.

Commodities

Crude was down 3%. United States Oil Fund (USO) was down 2.1%. Natural gas was down 5% while United States Natural Gas Fund (UNG) was down 4.4%.

Gold was down 0.9%. SPDR Gold Trust (GLD) was up 0.9%. Silver was up 1.1% while iShares Silver Trust (SLV) was up 0.8%.

Consumer

Consumer staples funds were lower, mostly in line with the broader market. Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples ETF (VDC), and iShares Dow Jones US Consumer Goods (IYK) were weaker.

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

Acuity Brands Inc (AYI) was down 14.8% after it fiscal Q1 revenue for the quarter ended November 30, 2016 of $851.2 million, up from $736.6 million last year but below the $896.9 million Capital IQ consensus estimate. Adjusted EPS were $2.00, versus $1.77 last year. This fell short of the $2.18 Capital IQ estimate.

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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