Mid-Day ETF Update: ETFs, Stocks Higher, Tracking Crude OIl; Second Presidential Debate Outcome Lifts Sentiment

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

iShares MSCI Emerging Index Fund ( EEM ): +1.2%

United States Oil Fund ( USO ): +1.8%

SPDR S&P 500 ( SPY ): +0.5%

VanEck Vectors Gold Miners ETF ( GDX ): +0.6%

SPDR Select Sector Fund - Financial ( XLF ): +0.6%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were higher. Actively traded PowerShares QQQ (QQQ) was up 0.7%.

U.S. stocks were higher at session's half, as a rally in oil and the outcome of the latest presidential debate helped lift market sentiment.

Crude oil prices rose following remarks from Russian President Vladimir Putin, who was supportive of production cuts proposed by the Organization of Petroleum Exporting Countries.

Stocks were also higher from last night's presidential debate between Republican candidate Donald Trump and Democratic candidate Hillary Clinton as Wall Street seems more at ease with the more defined economic policies of front-runner Clinton than the uncertainty surrounding Trump.

Power Play: Technology

Tech funds were higher, modestly ahead of 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. SPDR S&P International Technology Sector ETF (IPK) was flat.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 0.1% and Semiconductor Sector Index Fund (SOXX) was down 0.4%.

MobileIron (MOBL) was up 20% after the mobile IT platform provider raised revenue guidance for Q3, above Wall Street expectations. Q3 revenue is expected to be between $41.0-$42.0 million, above the previous guidance of $39-$41 million. Three analysts on average had predicted $40.4 million in revenue, according to Capital IQ data. The company said it ended the quarter with cash and cash equivalents plus short-term and long-term investments of $80 million for a sequential reduction of roughly $6 million.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was up 0.6%. Direxion Daily Financial Bull 3X shares (FAS) was up 1.9% while its bearish counterpart, FAZ, was down 1.8%.

Goldman Sachs (GS) was up 1% following a Sunday Times report that said the bank has plans to move approximately 2,000 jobs out of London if the UK government decides to implement a "hard Brexit," whereby the UK cuts off all relations with Europe and loses its financial passporting rights. The report said the New York-based lender is looking to move nearly one in three of its London staff to rival European mainland cities if Britain loses preferential access to the EU's single market. Speaking at the International Institute of Finance's annual meeting in Washington, Morgan Stanley (MS) CEO James Gorman also said the bank was looking at whether it would need to move its employees from London to other financial centers, including New York.


Dow Jones U.S. Energy Fund (IYE) was up 1.5% while Energy Select Sector SPDR (XLE) was up 1.5%.

Royal Dutch Shell (RDS.A, RDS.B) has signed a preliminary memorandum of understanding with Iran's National Petrochemical Company to cooperate in the petrochemical industry, Reuters cited the Iranian oil ministry's news agency SHANA as saying on Monday. 'We believe that we can have joint projects in the petrochemical field with the National Petrochemical Company," the report cited Hans Nijkamp, the head of Iran affairs at the oil company as saying, Marzieh Shahdaei, Iran's deputy oil minister and CEO of National Petrochemical Company, said that Iran plans to expand its petrochemical output from the current level of 60 million tons to 160 million tons by 2025, according to SHANA. RDS.A shares were up 1.8% and RDS.B shares were up 2%.


Crude was up 2.9%. United States Oil Fund ( USO ) was up 3%. Natural gas was up 1.7% and United States Natural Gas Fund (UNG) was up 2.3%.

Gold was up 0.6%. SPDR Gold Trust (GLD) was up 0.3%. Silver was up 1.6% while iShares Silver Trust (SLV) was up 1%.


Consumer staples funds were firmer, in line with the broader market with Consumer Staples Select Sector SPDR (XLP) and Vanguard Consumer Staples ETF (VDC) while iShares Dow Jones US Consumer Goods (IYK) higher.

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 in the green.

Amaya (AYA) was down 2.8% after it confirmed late Friday it is in talks with William Hill PLC regarding a potential all share merger of equals. These discussions are ongoing and there can be no certainty that an agreement will be reached, it noted. The deal would be classified as a reverse takeover under the Listing Rules of the Financial Conduct Authority and is not subject to the City Code on takeovers and mergers.

Health Care

Health care funds were higher, in line with the broader market. Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were weaker. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 1.7%.

TESARO (TSRO) rose 23% to a new record after the company, together with the European Network for Gynaecological Oncological Trial groups, presented positive results from an ovarian cancer trial over the weekend. ENGOT-OV16/NOVA is a double-blind, placebo-controlled, international phase 3 trial of niraparib that enrolled 553 patients with recurrent ovarian cancer. The trial was designed to assess progression free survival in a broad population of patients who were assigned to one of two cohorts based upon germline BRCA mutation status. It met its primary endpoints in both cohorts.

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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