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Mid-Day ETF Update: ETFs, Stocks Mixed Following Upbeat Housing Data, Unexpected Decline in Consumer Sentiment

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

SPDR S&P 500 ( SPY ): +0.01%

iShares MSCI Emerging Markets Index ( EEM ): +1.20%

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.03%

Select Financial Sector SPDRs ( XLF ): -0.16%

iShares Russell 2000 Index ( IWM ): -0.29%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were mixed to weaker. Actively traded PowerShares QQQ ( QQQ ) edged lower, off 0.03%.

U.S. stocks were mixed at session's half, as investors digested housing and consumer sentiment data. The University of Michigan's survey showed that consumer sentiment unexpectedly declined to a preliminary 81.8 reading for May, down from 84.1 in April and missing forecasts for a rise to a 84.5 reading. Housing data was more upbeat - the Commerce Department reported that construction on new U.S. homes rose 13.2% to a seasonally adjusted annual rate of 1.07 million in April - the fastest pace in five months and exceeding forecasts. Overall building permits rose 8% in April to an annual rate of 1.08 million - also reaching a record pace since June 2008.

Power Play: Consumer

Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were higher and near their record or multi-year highs.

Retail ETFs SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR), and Market Vectors Retail ETF (RTH) were firmer.

Among stocks, Dillard's Inc. (DDS) climbed 13% to a record high Friday after the fashion apparel, cosmetics and home furnishing retailer reported that its Q1 earnings topped analyst estimates. The company said late Thursday it earned $111.7 million, or $2.56 per share, during the 13 weeks ended May 3, up from a $117.2 million gain during the year-ago period and topping the Capital IQ consensus of $2.39 per share. Net sales were little changed over the same quarter last year, rising just 0.6% to $1.539 billion and trailing analyst estimates by around $61 million. Total merchandise sales increased 1% while same-store sales rose 2% during the quarter over year-ago levels.

The company also said it spend about $65.9 million to repurchase around 700,000 of its shares during the quarter. The average price paid was about $89.34 per share, with the stock buyback reducing DDS' number of outstanding shares by around 1.6%.

Winners and Losers

Financial

Select Financial Sector SPDRs ( XLF ) was down 0.16%. Direxion Daily Financial Bull 3X shares (FAS) was down 0.50%. Its bearish counterpart, FAZ, was up 0.53%.

Among sector news, Deutsche Bank (DB) was up 0.07% after the German bank announced it reached an agreement to sell Nevada Property 1 LLC, which owns The Cosmopolitan of Las Vegas, to Blackstone (BX) Real Estate Partners VII for $1.73 billion. The acquisition will be paid in cash and will be subject to regulatory approvals. Once the transaction is finalized, Deutsche Bank will see a net positive impact on its CRD4 pro-forma fully loaded common equity tier 1 ratio of approximately five basis points. BX shares were up 0.72%.

Technology

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

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.09% and Semiconductor Sector Index Fund (SOXX) was up 0.68%.

In corporate news, ChinaCache (CCIH) was down 15% after reporting Q1 adjusted non-GAAP net income of RMB 2.7 million or RMB 0.11 per ADS ($0.4 million or $0.02 per ADS), versus adjusted non-GAAP net loss of RMB 7.2 million or RMB 0.33 loss per ADS ($1.16 million or $0.05 loss per ADS). There were no analyst estimates for CCIH's bottom line results. Revenue was RMB 323.9 million or $52.1 million, up from RMB 230.75 million or $37.02 million in the same quarter last year. Analysts polled by Capital IQ were expecting revenues of $49.41 million. The company expects Q2 revenue of RMB 340 million - RMB 345 million ($54.7 million - $55.5 million). The Street view is for $55.61 million.

Energy

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) were in negative territory.

Among stocks, Tsakos Energy Navigation (TNP) was up 4% after it reported Q1 2014 EPS of $0.19, up from $0.02 for Q1 2013 and beating analyst estimates of $0.10. Total revenues of $91.3 were up from $73.2 million in Q1 2013 and topped analyst estimates of $87.87 million for the quarter. As previously announced, the company will pay a dividend of $0.05 per common share on May 22 to shareholders of record as of May 19. The company's Board of Directors has also declared an additional dividend of $0.05 per share of common stock outstanding to be paid on August 14 to shareholders of record as of August 11.

Commodities

Crude was up 0.49%; United States Oil Fund (USO) was up 0.4%. Natural gas was down 0.67% and United States Natural Gas Fund (UNG) was down 0.12%.

Gold was down 0.02% and silver was down 0.64%. Among rare metal funds, SPDR Gold Trust (GLD) was down 0.18% and iShares Silver Trust (SLV) was down 0.75%.

Health Care

Health Care SPDR (XLV) iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were weaker. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was down 1.11%.

In corporate news, Enzymotec (ENZY) is down 7.85% after the company said its joint venture partner in Advanced Lipids AB, AarhusKarlshamn AB, a Sweden-based, global producer of specialty oils, has submitted a claim for arbitration against the Company seeking certain declaratory relief with respect to the joint venture agreement. AarhusKarlshamn claims that Enzymotec's disclosures in connection with its initial public offering violated the non-disclosure obligations related to Advance Lipids contained in the joint venture agreement.

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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