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Mid-Day ETF Update: ETFs, Stocks Extend Losses as Dow Ends Six Days of Setting Record Highs

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

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

SPDR Select Sector Fund - Financial ( XLF ): -0.2%

Direxion Daily Gold Miners Index Bull 3X Shares ( NUGT ): -3.4%

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): +0.8%

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

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV edged lower. Actively traded PowerShares QQQ (QQQ) was up 0.1%.

U.S. stocks were mostly lower Friday, with the Dow Jones Industrial Average snapping a six-day run of record high closes.

Market sentiment turned sour as investors looked for more concrete news from President Donald Trump and his plans for the economy, including promised tax reforms. In a lengthy press conference Thursday, Trump didn't offer details about his tax cuts or other fiscal stimulus plans.

In economic data news, January leading indicators rose 0.6% to 125.5 beating the expected 0.4% rise and following a 0.5% bump to 124.7 in December.

Power Play: Health Care

Health care funds were lower, in line with the broader market. Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were in the red. Meanwhile, Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.3%.

ArQule (ARQL) tumbled 19.8% to a new two-year low after the early-stage biotechnology firm said its tivantinib drug candidate failed to meet its primary endpoint of improving overall survival during phase III testing in patients with the common form of liver cancer.

Winners and Losers

Financial

Select Financial Sector SPDRs ( XLF ) was down 0.2%. Direxion Daily Financial Bull 3X shares (FAS) was down 0.9%, while its bearish counterpart, FAZ, was up 0.9%.

Orchid Island Capital (ORC) was down 8.9% after the company reported Q4 loss of $0.72 per share, down from a profit of $0.36 per share a year ago, and below the Capital IQ consensus estimate for a gain of $0.42 per share. Net interest income of $20.1 million increased from $16.7 million a year ago, and beat the estimated $19.5 million

Technology

Tech stocks were lower, behind the broader market. 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 in negative territory. Meanwhile, SPDR S&P International Technology Sector ETF (IPK) was flat.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.3% and Semiconductor Sector Index Fund (SOXX) was up 0.1%.

Arista Networks (ANET) jumped 18% after it reported late Thursday that it expects Q1 revenue to range between $320 and $330 million. Analysts had predicted revenue of $304.8 million, according to Capital IQ estimates. Non-GAAP EPS increased to $1.04 in Q4, from $0.80 a year earlier. That topped the $0.82 average estimate of analysts surveyed by Capital IQ. Q4 revenue increased 33.6% to $328.0 million, also exceeding the analyst consensus of $317.3 million.

Energy

Dow Jones U.S. Energy Fund (IYE) was down 0.7% and Energy Select Sector SPDR (XLE) was down 0.7%.

Circor International (CIR) fell 11.8% after the company reported Q4 results which beat expectations compiled by Capital IQ. Q4 adjusted EPS was $0.48 per share, down from $0.63 per share a year earlier but above the $0.41 per share consensus. Revenues fell 4% year-over-year to $158.2 million yet were also above expectations for $148 million.

Commodities

Crude was down 0.5%. United States Oil Fund (USO) was down 0.6%. Natural gas was down 0.3% while United States Natural Gas Fund (UNG) was up 0.1%.

Gold was up 0.1%. SPDR Gold Trust (GLD) was down 0.1%. Silver was down 0.2% while iShares Silver Trust (SLV) was down 0.2%.

Consumer

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

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

The Kraft Heinz Company (KHC) rose 7.6% after it said in a U.K. regulatory filing that it has proposed to merge with Unilever (UN) to create "a leading consumer goods company with a mission of long-term growth and sustainable living." Unilever meanwhile said the offer, at $50 a share in a mixture of cash and stock, values the owner of Magnum, Lipton tea and Dove, at $143 billion, but declined the offer as being of "no merit, either financial or strategic" and "does not see the basis for any further discussions." Unilever said the proposal, which represented a premium of 18% to Thursday's close, undervalues the company. Kraft Heinz for its part said that "while Unilever has declined the proposal, we look forward to working to reach agreement on the terms of a transaction." Unilever said that under the proposal, its shareholders will received $30.23 in cash and 0.22 new shares enlarged entity shares per existing Unilever share. Unilever American depository shares were up 13%.

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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