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Mid-Day ETF Update: ETFs Mixed, Stocks Firmer Following Better-Than-Expected Rise in June Business Inventories

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

SPDR S&P 500 ( SPY ): +0.57%

iShares MSCI Brazil Index ( EWZ ): -1.21%

iShares MSCI Emerging Markets Index ( EEM ): +0.47%

iPath S&P 500 VIX ST Futures ETN ( VXX ): -4.55%

PowerShares QQQ Trust, Series ( QQQ ): +0.88%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were mixed. Likewise, actively traded PowerShares QQQ ( QQQ ) was up 0.89%.

U.S. stocks were higher at session's half, erasing earlier losses as worries over geopolitical issues in Ukraine and Russia and the Middle East eased somewhat. In economic data news, the Commerce Department reported that business inventories rose 0.4% in June to a seasonally adjusted $1.74 trillion -better than forecasts.

Meanwhile, overall retail sales for July were unchanged from the prior month. The data missed expectations for an increase of 0.2%. Excluding autos, retail sales rose 0.1% in July.

Power Play: Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were in the green. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 1.99%.

Insys Therapeutics (INSY) was up 8.15% after the company said late Tuesday that it submitted a New Drug Application (NDA) to the U.S. FDA for its proprietary Dronabinol Oral Solution for anorexia associated with weight loss in patients with AIDS; and nausea and vomiting associated with cancer chemotherapy in patients who have failed to respond adequately to conventional antiemetic treatments. Earlier, it said Q2 non-GAAP adjusted income rose to $0.58 per diluted share from $0.24 the year earlier, exceeding the $0.30 average estimate from analysts polled by Capital IQ. Sales jumped to $55.7 million from $18.18 million the year earlier compared to the $52.8 million consensus.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) was up 0.47%. Direxion Daily Financial Bull 3X shares (FAS) was up 1.86% while its bearish counterpart, FAZ, was down 1.82%.

Newcastle Investment (NCT) was down 1.67% after the firm said it priced its public offering of 40 million shares of its common stock for gross proceeds of approximately $176 million, implying a price per share of $4.40. The implied price per share is below the stock's Tuesday closing price of $4.48. The shares declined 2.2% recently to $4.38. Newcastle said it has granted the underwriters an option for 30 days to purchase up to an additional 5.9 million shares of common stock. The offering is expected to close Aug. 18.

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

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 0.98% and Semiconductor Sector Index Fund (SOXX) was down 0.77% .

Canadian Solar (CSIQ) jumped 12.58% after the company reported strong Q2 results, with earnings and revenue beating the consensus of analysts polled by Capital IQ. The solar panel maker posted Q2 net income attributable to the company of $55.8 million, or $0.95 per diluted share, compared to a net loss of $12.6 million, or $0.29 per diluted share in Q2 2013. Analysts were expecting EPS of $0.58. Revenue rose 64% year-on-year to $623.8 million, topping the consensus of $577.7 million. Solar module shipments totaled 646 MW in Q2, compared to 500 MW in Q1 2014. For Q3 2014, CSIQ expects module shipments to be in the range of approximately 720 MW to 750 MW. Total revenue for the third quarter of 2014 is expected to be in the range of $760 million to $810 million, with gross margin expected to be between 19% and 21%.

Energy

Dow Jones U.S. Energy Fund (IYE) was up 0.42%; Energy Select Sector SPDR (XLE) was up 0.42%.

Enphase Energy (ENPH) was up 3.21% after announcing it has partnered with YHI (New Zealand) Ltd. to distribute its microinverter-based solar photovoltaic system to the New Zealand solar installer community. The company said that YHI would ship Enphase's products from six warehouses throughout New Zealand. The YHI partnership means that Enphase Systems is now shipping in 12 countries, although the company.

Commodities

Crude was down 0.39%; United States Oil Fund (USO) was down 0.36%. Natural gas was down 3.17% and United States Natural Gas Fund (UNG) was down 3.29%.

Gold was down 0.03%, and silver was down 0.73%. Among rare metal funds, SPDR Gold Trust (GLD) was down 0.02% and iShares Silver Trust (SLV) was down 0.94%.

Consumer

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

CafePress Inc (PRSS) was down 4% after it reported late Tuesday a Q2 loss that was greater than the Street expected while revenue beat the Street estimate. Non-GAAP net loss was $1.8 million, or $0.11 per diluted share. Net revenues totaled $51.4 million, compared to $52.4 million in Q2 2013. The Street expected a loss of $0.10 per share on revenue of $49.8 million, according to Capital IQ estimates.

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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