Mid-Day ETF Update: ETFs, Stocks Extend Gains Ahead of Dodd-Frank Vote, Trump Press Confab

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

iShares Core MSCI EAFE ( IEFA ): +0.8%

SPDR S&P 500 ( SPY ): +0.3%

iShares MSCI Emerging Index Fund ( EEM ): +1.1%

iShares MSCI Eurozone ( EZU ): +0.8%

iShares MSCI United Kingdom ( EWU ): +0.6%

Broad Market Indicators

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

US stocks were higher at session's half, as Wall Street kept its focus on developments in Washington. The US Senate is set to vote Tuesday on a rollback of key provisions of the Dodd-Frank regulations enacted by lawmakers almost a decade ago to keep financial-service companies from making the risky investments that helped trigger the 2008-09 financial crisis. President Trump also is scheduled to take questions from reporters at 3:30 p.m. ET, according to the White House.

In economic data news, factory orders fell 1.4% during January, coming in 0.1 percentage points higher than expert opinion, in the final report of a mixed-to-soft month for manufacturing metrics. Excluding transportation equipment, the decline narrowed to 0.5% following gains of 0.8% and 0.4% during the final two months of 2017. Non-durable goods continue to hold up well, with orders rising 0.8%, while durable orders fell 3.6% although that was 0.1 of a percentage point below the flash reading for that component last week, which is one-tenth less weak than last week's advance report for this component. Shipments of core capital goods, which excludes defense items and aircraft, slipped 0.1%, reversing a positive 0.1% initial reading for the component while orders of core capital goods were revised 0.1 percentage points lower to a 0.3% decline following a 0.5% drop in December.

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 higher. Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 1.4% and Semiconductor Sector Index Fund (SOXX) was up 1.3%.

American depository shares of Baozun (BZUN) rallied 23%, touching a best-ever $45.26 per ADS, after the Chinese e-commerce platform reported Q4 non-GAAP diluted EPS was RMB2.72 ($0.42), up from last year's RMB1.26, exceeding Street view of RMB1.96. Revenue grew 23% year-over-year to RMB1.57 billion ($240.6 million) and beat expectations for RMB1.54 billion. For 2018, the company expects total net revenue to increase to over RMB5.10 billion. In addition, the company said it expects total net revenue to be between RMB860 million and RMB890 million for Q1 of 2018, above the consensus.

Winners and Losers


The Select Financial Sector SPDRs (XLF) was up 0.4%. Direxion Daily Financial Bull 3X shares (FAS) was up 1.1% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was down 1.0%.

Washington Trust Bancorp Inc. (WASH) rose 0.9% after saying it has completed its executive transition, with Edward Handy III becoming board chairman and chief executive officer of the bank holding company and for the bank, taking over for Joseph MarcAurele following his March 2 retirement. Handy previously was president and chief operating officer of Washington Trust since November 2013, managing over 600 employees working in a variety of commercial, mortgage and personal banking along with wealth management and trust services throughout Rhode Island, Connecticut and Massachusetts. The company also promoted Mark Gim to replace Handy as president and chief operating officer.


Dow Jones US Energy Fund (IYE) was up 0.2% and Energy Select Sector SPDR (XLE) was up 0.3%.

Baytex Energy (BTE,BTE.TO) rose some 7% on Tuesday after the Canadian oil and natural gas producer reported a surprise Q4 profit and revenue also topping expert opinion. Excluding one-time items, the company earned CAD0.32, or about $0.25, per share, reversing a C$1.66 per share net loss during the same quarter last year and also beating the Capital IQ consensus looking for a C0.12 per share net loss. Total revenue rose to CAD302.2 million from CAD233.1 million last year, also exceeding the single-analyst call expecting CAD277 million in revenue.


Crude was down 0.2%. United States Oil Fund (USO) was down 0.08%. Natural gas was up 1.6% while United States Natural Gas Fund (UNG) was up 1.6%.

Gold was up 1.2%. SPDR Gold Trust (GLD) was up 1%. Silver was up 2.2%, while iShares Silver Trust (SLV) was up 2%.

Health Care

Health care funds Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones U.S. Healthcare (IYH), were weaker. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.1%.

Marinus Pharmaceuticals (MRNS) tumbled 12% after the specialty drug-maker reported an $0.80 per share FY17 net loss, improving on a net loss of $1.47 per share during the prior-year period but still missing the two-analyst consensus call expecting a $0.71 per share net loss last year.


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) was firmer while retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were in the green. (CARS) rose more than 5% after the online auto seller beat analyst estimates on both its top and bottom lines, supported by an 6% year-over-year increase in mobile traffic. Excluding one-time items, the company earned $0.48 per share, exceeding the Capital IQ consensus by $0.17 per share. Revenue slipped 3% year-over-year to $156.6 million from $161.7 million last year but still topped the $156.3 million analyst mean. For FY18, the company is expecting 10% to 11% revenue growth, in-line with the 10.3% increase to around $691.01 million in sales that analysts, on average, are expecting.

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 All rights reserved. Unauthorized reproduction is strictly prohibited.

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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