Mid-Day ETF Update: ETFs, Stocks Lower But On Track for Weekly Gain

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

SPDR Select Sector Fund - Financial ( XLF ): -0.9%

SPDR S&P 500 ( SPY ): -0.1%

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): +0.5%

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

Direxion Daily Junior Gold Miners Index Bull 3X Shares ( JNUG ): +1.3%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were edged lower. Actively traded PowerShares QQQ (QQQ) was down 0.2%.

U.S. stocks were lower at session's half, but were set to close the week with gains, even as concerns regarding over-valuations lingered.

In economic news, new home sales increased 3.7% in January to a seasonally-adjusted annual rate of 555,000, missing expectations for a gain of 7.4% to 576,000.

Consumer sentiment declined from January according to a monthly survey by the University of Michigan. The final February measure was revised up to 96.3 from 95.7 initially, but was down from 98.5 in January. Wall Street was expecting the index to drop to 96.0.

Oil prices receded with global benchmark Brent crude down 0.85% recently and U.S. benchmark West Texas Intermediate down 0.77% after official data showed U.S. crude stockpiles increased for a seventh consecutive week.

Power Play: Consumer

Consumer staples funds were in the green, above the broader market. Consumer Staples Select Sector SPDR (XLP), and Vanguard Consumer Staples ETF (VDC) were higher; iShares Dow Jones US Consumer Goods (IYK) was down 0.2%.

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.

RH (RH) rose 28.5% after the company said it expects Q4 GAAP net revenues of approximately $587 million and adjusted net revenues of approximately $590 million. The CapIQ mean was for sales of $584.71 million. EPS are seen approximately $0.21 and adjusted diluted EPS approximately $0.68. Estimates were for adjusted EPS of $0.65 and GAAP EPS of $0.63. Its board authorized a $300 million common share repurchase program.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was down 0.9%. Direxion Daily Financial Bull 3X shares (FAS) was down 2%, while its bearish counterpart, FAZ, was up 1.9%.

Redwood Trust (RWT) was down 4.4% after the company said late Thursday Q4 non-GAAP EPS fell to $0.33 from $0.39 in Q3 and missed the CapIQ mean for $0.38. Net interest income slipped to $36 million from $44 million last year and missed expectations for $37.07 million.


Tech funds were lower in line with 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 weaker. SPDR S&P International Technology Sector ETF (IPK) was down 1.2%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 1.1% and Semiconductor Sector Index Fund (SOXX) was down 0.6%.

Universal Display (OLED) rose 20% to a new record high after the company reported Q4 results which were better-than-expected and issued in line guidance on full-year revenues. Q4 adjusted EPS was $0.55 per share, up from $0.39 per share a year earlier and above the $0.41 per share consensus compiled by Capital IQ. Revenues surged 20% year-over-year to $74.6 million and topped forecasts for $69.1 million. For FY17, the company expects revenues of $230 million to $250 million, straddling the $242.7 million mean estimate.


Dow Jones U.S. Energy Fund (IYE) was down 0.9% and Energy Select Sector SPDR (XLE) was down 0.8%.

Southwestern Energy Company (SWN) was down 8.8% after reporting Q4 revenues of $684 million, versus $687 million last year. This beat the $681.4 million Capital IQ estimate. EPS were $0.08, versus a loss per share of $0.02 last year. This missed the $0.13 Capital IQ estimate.


Crude was down 0.6%. United States Oil Fund (USO) was down 0.5%. Natural gas was up 0.4% while United States Natural Gas Fund (UNG) was up 0.9%.

Gold was up 0.6%. SPDR Gold Trust (GLD) was up 0.7%. Silver was up 1.5% while iShares Silver Trust (SLV) was up 1.2%.

Health Care

Health care funds were higher, ahead of the broader market. Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were in the green. Meanwhile, Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was down 0.4%.

Cempra (CEMP) jumped 38.1% after the pharmaceutical company reported positive top-line results from a clinical study of oral fusidic acid in 716 patients with acute bacterial skin and skin structure infections (ABSSSI). The company said fusidic acid was well tolerated in the study, and achieved the primary endpoint, demonstrating non-inferiority of oral fusidic acid compared to oral linezolid for early clinical response in the intent to treat the patient population.

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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