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Mid-Day ETF Update: ETFs, Stocks Maintain Modest Gains But On Track to Close Week Lower

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

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): -1.8%

SPDR Select Sector Fund - Financial ( XLF ): -0.02%

PowerShares QQQ Trust, Series 1 ( QQQ ): +0.1%

ProShares Trust Ultra VIX Short Term Futures ETF ( UVXY ): -3.1%

iShares MSCI Emerging Index Fund ( EEM ): +0.7%

Broad Market Indicators

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

U.S. stocks held on to gains at session's half, although all three major indices are set to close the week lower.

Earlier gains were from the tech sector, in turn buoyed by bargain-hunting, and the energy sector as oversupply issues continued to dissipate. After a shallow retreat on a below-consensus increase in May personal income, stocks were nudged higher on a 3-year high in the Chicago purchasing manager's index and upward revision to the University of Michigan consumer sentiment index in June.

The Chicago PMI increased to 65.7 in June from 59.4 in May, beating 58.2 estimates, and the Univ of MI index was revised to 95.1 from 94.5, but was down from May's 97.1.

Power Play: Health Care

Health care funds Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were weaker. Likewise, Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was down 0.7%.

Skyline Medical (SKLN) was up 18.3% after it said that it expects the full rollout of its Streamway system in Europe by early 2018. The Streamway system, a direct-to-drain fluid disposal system designed specifically for medical applications, has been granted a CE mark, making it available in 32 European countries. The company expects to record its first European sale by the end of the year.

Winners and Losers

Financial

Select Financial Sector SPDRs ( XLF ) was down 0.2%. Direxion Daily Financial Bull 3X shares (FAS) was down 0.4%, while its bearish counterpart, FAZ, was up 0.4%.

Barclays (BCS) was down almost 1% after Bloomberg said executives at the bank will be interviewed by the U.K. Financial Conduct Authority as part of its investigation into CEO Jes Staley's attempts to unmask a whistle-blower. It will interview, among others, Mike Ashley, the board member who supervises whistle-blowing complaints and chief operating officer Paul Compton, in addition to Staley, said two of the people, who asked not to be identified because the requests were private. Staley tried to identify a whistle-blower, even after colleagues said it was inappropriate. The CEO may forfeit his GBP1.3 million ($1.7 million) bonus and could lose his job if regulators deem him unfit to run a financial institution in light of his conduct. The whistle-blower allegations related to the bank's hiring of one of Staley's former JPMorgan Chase & Co. (JPM) colleagues, Tim Main. The FCA investigation will probably be completed later this year, sources told Bloomberg.

Technology

Tech funds 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 the green. Meanwhile, SPDR S&P International Technology Sector ETF (IPK) was down 0.3%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 0.4% while Semiconductor Sector Index Fund (SOXX) was down 0.3%.

EXFO Inc (EXFO) was down 9% after it reported a net loss per share of $0.08 in Q3, compared to net earnings of $0.02 per share a year earlier. Analysts were expecting a profit of $0.04 per share, but it's unclear if this is comparable. Sales reached $58.5 million in the third quarter of fiscal 2017 compared to $60.9 million in the third quarter of 2016, lower than consensus of $61.61 million. Looking ahead, the company is forecasting sales between $58.0 million and $63.0 million for Q4, while IFRS net results are expected to range between a loss of $0.03 per share and earnings of $0.01 per share. Analysts are expecting $67 million in revenue and a profit of $0.08 per share for Q4.

Energy

Dow Jones U.S. Energy Fund (IYE) was up 0.5% and Energy Select Sector SPDR (XLE) was up 0.5%.

Carrizo Oil & Gas (CRZO) was up 7.4% after it said that it has priced its underwritten public offering of $250 million aggregate principal amount of 8.25% senior notes due 2025 pursuant to an existing shelf registration statement.

Commodities

Crude was up 1.8%. United States Oil Fund (USO) was up 2.1%. Natural gas was down 1.8% while United States Natural Gas Fund (UNG) was up 2.1%.

Gold was down 0.3%. SPDR Gold Trust (GLD) was down 0.2%. Silver was 0.1% lower while iShares Silver Trust (SLV) was up 0.1%.

Consumer

Consumer Staples Select Sector SPDR (XLP) and other consumer staples funds Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were firmer.

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 also higher.

The Hain Celestial Group (HAIN) was up 8.1% after the company was seen as undervalued by Engaged Capital, which showed in a regulatory filing it has accumulated 10,353,699 shares of the company, or 9.9% stake. It said it believes the shares represent an attractive investment opportunity and will continue to talk with the company on how to create shareholder value.

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 MTNewswires.com. 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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