Mid-Day ETF Update: ETFs, Stocks Extend Gains as Strong Earnings Reports Buoy Sentiment; Conusmer Credit Still Ahead

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

SPDR Select Sector Fund - Financial ( XLF ): +0.7%

iShares MSCI Emerging Index Fund ( EEM ): +1.3%

SPDR S&P 500 ( SPY ): +0.4%

Invesco QQQ Trust, Series 1 ( QQQ ): +0.4%

iPath S&P 500 VIX ST Futures ETN ( VXX ): -2%

Broad Market Indicators

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

US stocks continued to log gains into the session's half, amid strong earnings reports. Gains were centered on tech and banking stocks. Energy stocks were also higher, as sanctions on Iran take effect.

In economic data news, the June Job Openings and Labor Turnover Survey (JOLTS) showed that job openings edged up 3,000 to 6.662 million, versus the consensus for 6.650 million. In May, the figure was for 6.659 million, revised from 6.638 million. Openings were at a record high 6.840 million in April, the rate was unchanged at 4.3%.

Still ahead, the June consumer credit report will be released at 3 pm ET; expectations are for an increase to $16.0 billion after surging $24.6 billion in May.

Power Play: Technology

Technology Select Sector SPDR ETF (XLK) was up 0.4% and other tech funds 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 the green.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.4% and Semiconductor Sector Index Fund (SOXX) was up 0.5%.

Zillow Group (ZG) plunged more than 16 % after it reported Q2 sales rose 22% to $325.3 million from the year-ago period but just missed the Capital IQ mean for $325.5 million. It posted earnings of $0.13 per share, exceeding the Street view for $0.13 per share. Meanwhile, Q3 sales are seen between $337 million and $347 million, below forecasts for $405.1 million, and fiscal-year sales are pegged from $1.32 billion and $1.35 billion, missing expectations for $1.48 billion. The reduced IMT earnings outlook fell by $21 million, or 7%, due largely to a $10 million reduction in revenue -- primarily retails that fell on lower-than-expected leads and traffic and an $11 million bump in expenses, the bank said. The company also announced that it agreed to acquire Mortgage Lenders of America. The terms were not disclosed but the deal is seen closing in Q4. The acquisition will add to costs, as will increased hiring and brand advertising spending.

Winners and Losers


The Select Financial Sector SPDRs ( XLF ) was up 0.7%. Direxion Daily Financial Bull 3X shares (FAS) was up 1.3% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was down 1.3%.

On Deck Capital (ONDK) surged more than 2% after it reported Q2 adjusted net income per diluted share of $0.13, up from $0.06 during the year-ago quarter, and handily beating the Capital IQ consensus forecast of $0.05. Gross revenue for the quarter was $95.6 million, up from $86.7 million for the same period last year, and ahead of the analyst forecast of $93.5 million. For its Q3 guidance, the company forecasts adjusted net income of between $6 million and $10 million on gross revenue of between $95 million and $100 million. For full-year 2018, the company expects adjusted net income of between $30 million and $36 million on gross revenue of between $380 million and $386 million. Analysts are expecting Q3 and full-year gross revenue of $97.2 million and $381.1 million, respectively.


Dow Jones US Energy Fund (IYE) was up 1% and Energy Select Sector SPDR (XLE) was up 1.1%.

Daqo New Energy (DQ) rose more than 14% after it reported adjusted EPS of $1.44 for Q2, up from last year's $1.31, exceeding the Capital IQ consensus of $0.90. Revenue fell year-over-year to $67 million from $76 million but still exceeded mean estimate of $62.7 million provided by Capital IQ. The company expects to produce approximately 4,100 MT to 4,300 MT of polysilicon in Q3 and approximately 22,000 to 23,000 MT of polysilicon in 2018.


Crude was up 0.3%. United States Oil Fund (USO) was up 0.6%. Natural gas was up 1.2% while United States Natural Gas Fund (UNG) was up 1.7%.

Gold was up 0.1%. SPDR Gold Trust (GLD) was up 0.4%. Silver was down 0.3%, while iShares Silver Trust (SLV) was up 0.5%.


Consumer Staples Select Sector SPDR (XLP) was down 0.5% and Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones U.S. Consumer Goods (IYK) were lower.

Consumer Discretionary Select Sector SPDR (XLY) was up 0.5% while retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were higher.

Weight Watchers International Inc (WTW) fell some 14% after it reported late Monday Q2 revenue of $409.7 million, up from $341.7 million in the year-ago quarter and in line with the analyst consensus on Capital IQ. Earnings were $1.01 per share, an increase over the $0.67 per share posted a year ago and ahead of expectations of $0.88 per share. For FY 2018, the company is targeting earnings of $3.10 to $3.25 per share, up from its prior guidance of $3.00 to $3.20 per share and ahead of the Street view of $2.90 per share.

Health Care

Health Care SPDR (XLV) was down 0.1% while other health care funds Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were firmer. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.7%.

Dentsply Sirona (XRAY) fell nearly 19% after it reported late Monday that its Q2 per share GAAP loss was $4.98 while non-GAAP EPS was $0.60. The CapIQ mean was for GAAP EPS of $0.38 profit and normalized EPS of $0.59. Sales rose 5% to $1.042 billion and beat expectations for $1.025 billion. The company cut its FY adjusted EPS outlook to $2.00 to 2.15 from its previous estimate of $2.55 to $2.65 and below forecasts for $2.57. It assumes an approximately 2% constant currency revenue decline for the full year, down from previous expectations of 2% constant currency revenue growth.

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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