Mid-Day ETF Update: ETFs, Stocks Extend Weakness Following Weak Data on Factory Orders, Jobs and Consumer Spending

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

SPDR S&P 500 ( SPY ): +0.47%, nearing 52 week highs.

iShares MSCI Emerging Markets Index ( EEM ): -0.87%.

Direxion Daily Gold Miners Bull 3X Shares ( NUGT ): -6.17%

iPath S&P 500 VIX Short Term Futures ( VXX ) -1.3%, with a new 52 week low.

iShares Russell 2000 ( IWM ): +0.42, at high end of 52 week range.

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, extended their losses into the session's half. Actively traded PowerShares QQQ (QQQ), however, was up 0.19 and has hit a new 52-week high of $76.72.

U.S. stocks gave up gains and settled into negative territory following the report that factory orders for June rose 1.5%, less than the expected 2.2% increase, according to a consensus. The downbeat data was the latest in a mixed bag of economic releases - earlier, the Labor Department reported that the unemployment rate fell 7.4% - the lowest level since December 2008, due in part to more people dropping out of the labor force. The U.S. economy generated 162,000 jobs in July, versus the expected 180,000 jobs according to a poll by MarketWatch. The government also revised job gains for June and May slightly lower. Meanwhile, the Commerce Department said that in June, consumer spending rose 0.5%, in line with expectations and outpacing income growth. Personal income was up 0.3%, missing forecasts of a 0.5% gain.

Winners and Losers

Financial -

Select Financial Sector SPDRs (XLF) was off 0.12% but still near 52-week highs. Direxion Daily Financial Bull 3X shares (FAS) was down 0.18%. Its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was up 0.22%.

In company news, American International Group Inc. (AIG) was up 2.72% after reporting in Thursday's after-hours session Q2 EPS of $1.84, and operating income of $1.12, better than analyst estimates of $0.86 per share. The company also approved a stock buyback of up to $1 billion in shares. Shares also hit a new 52-week high of $49.50.

Energy -

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) were down 0.84% and 0.81%, respectively.

In sector news, Chevron (CVX) was down 2.25% after it reported Q2 earnings of $2.77 per share, ex one-time items, versus the Capital IQ consensus of $2.98. Revenues were $57.37 billion, versus the analyst estimate of $65.01 billion. In the same period last year, the company reported EPS of $3.66 on revenues of $62.6 million.

Commodities -

Crude was down 0.67%; natural gas was down 0.65%. United States Oil Fund (USO) was down 0.56%. United States Natural Gas Fund (UNG) was down 0.56%.

Gold was up 0.01% and silver was up 1.48%. Among rare metal funds, SPDR Gold Trust (GLD) was up 0.16%; iShares Silver Trust (SLV) was up 1.53%.

Consumer -

Consumer Staples Select Sector SPDR (XLP) was down 0.26%; iShares Dow Jones US Consumer Goods (IYK) and Vanguard Consumer Staples ETF (VDC) were also lower.

In sector news, Sealed Air (SEE) was up 9.29% after reporting adjusted Q2 earnings of $0.35 per share, up from $0.16 the year earlier and exceeding the $0.25 per share that analysts, on average, were expecting. Net sales rose 2.1% to $1.96 billion, narrowly trailing the $2 billion consensus. The company maintained its FY13 guidance for net sales between $7.7 billion and $7.9 billion and for adjusted EPS between $1.10 and $1.20. The Street is at $1.16 per share on $7.8 billion in revenue.

Healthcare -

Health Care SPDR (XLV) was down 0.25%, but still near its 52 week highs; Vanguard Health Care ETF (VHT), iShares Dow Jones US Healthcare (IYH), Biotech ETF iShares and NASDAQ Biotechnology Index (IBB) were also weaker.

In company news, Organovo Holdings Inc. (ONVO) was down 10.47% after the three-dimensional imaging healthcare company said in Thursday's after hours session that it is proposing a public offering of a still-to-be-determined number of shares of common stock. ONVO said underwriters participating in the offering will receive 30-day options to purchase shares equal to 15% of the offering total to cover possible overallotments.

Power Play -

Technology -

Technology Select Sector SPDR ETF (XLK) was up 0.16%; other tech ETFs 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 also firmer, outperforming the broader market.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 0.94% and Semiconductor Sector Index Fund (SOXX) was down 0.85%.

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

In company news, Active Network (ACTV) surged 25.03% after the company disclosed that it has received offers from interested, outside parties to invest in the company or acquire it. The company's Board of Directors has now established a committee to evaluate strategic alternatives. ACTV reported late Thursday Q2 EPS of $0.09, ex special items, beating the Capital IQ consensus estimate of $0.05. Revenues of $132.36 million also topped the consensus of $130.49 million. The company said that for Q3, it expects a loss of $0.02 to earnings of $0.04 per share, versus the analyst estimate of $0.01 EPS. Revenues are anticipated to be $113 million - $116 million, versus the consensus of $121.57 million. For FY13, the company said it sees a loss of $0.19 - $0.11 per share, in line with the consensus of $0.18 loss per share. Revenues are now expected to be $451 million - $456 million, below the Street view of $462.73 million. The prior guidance range was $470 million - $480 million.

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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