Mid-Day ETF Update: ETFs, Stocks Mixed to Lower Following Employment, Wholesale Inventories Data

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

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

iShares Russell 2000 Index ( IWM ): +0.50%

PowerShares QQQ Trust, Series 1 ( QQQ ): +0.05%

iShares MSCI Emerging Markets Index ( EEM ): +0.19%

Direxion Daily Small Cap Bear 3X Shares ( TZA ): -1.08%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were mixed. Actively traded PowerShares QQQ ( QQQ ) was up 0.05%.

U.S. stocks were flat to lower, although most have pulled back from earlier weakness following downbeat employment data for March and lackluster earnings reports. The Labor Department said that 4.014 million jobs were available in March, down from 4.173 million in February and missing estimates for 4.125 million job openings. Both the hiring rate and separations rate remained unchanged at 3.4% and 3.2%, respectively. Meanwhile, U.S. wholesale inventories rose 1.1% while wholesale sales grew 1.4% in March - both exceeding forecasts.

Power Play: 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) were in negative territory. SPDR S&P International Technology Sector ETF (IPK) was down 0.54%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were weaker.

In corporate news, Ubiquiti Networks (UBNT) was down 23% after it reported Q3 Non-GAAP net income of $45.2 million, or $0.50 per diluted share, compared with $21.1 million, or $0.24 per diluted share and was above estimates for $0.49. Total revenue increased 78% to $148.3 million, a record for the company and above the $142 million consensus estimate. Q4 guidance from Ubiquiti was mostly in line. It sees Q4 revenues of between $147 million and $153 million, with analysts looking for $148 million. It expects non-GAAP EPS of $0.48 and $0.52, with analysts looking for $0.50.

Winners and Losers


Select Financial Sector SPDRs (XLF) was down 0.30%. Direxion Daily Financial Bull 3X shares (FAS) was down 1.04%. Its bearish counterpart, FAZ, was up 0.90%.

Among sector news, Banc of California (BANC) was down some 1% and reached a 52-week low after it reported Q1 net income of $757,000 with a net loss attributable to shareholders of $0.01 per share, down from earnings of $0.05 per share a year prior. Earnings estimates were not available.


Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) slipped lower.

Among stocks, Matrix Service (MTRX) has surged 18% after it reported Q3 earnings of $0.42 per share, compared with the prior-year period's $0.25 per share. Revenue was $381.5 million, up 68.8% from $225.97 million in the same quarter last year. Analysts polled by Capital IQ were expecting EPS of $0.34 on revenues of $345.98 million. The company is raising its fiscal 2014 revenue guidance to $1.25 billion - $1.30 billion and its EPS guidance to $1.34 - $1.42. Analysts are looking for revenue of $1.26 billion and EPS of $1.41. MTRX also said Friday that the company and its subsidiaries have been awarded terminal expansion contracts in excess of $100 million by Enbridge Energy.


Crude was down 0.15%; United States Oil Fund (USO) was down 0.22%. Natural gas was down 1.16% and United States Natural Gas Fund (UNG) was down 1.50%.

Gold was down 0.09% and silver was down 0.28%. Among rare metal funds, SPDR Gold Trust (GLD) was down 0.15% and iShares Silver Trust (SLV) was down 0.38%.


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

Among stocks, Tuesday Morning (TUES) climbed more than 18% after it reported Q3 sales were $182.8 million, below the Thomson Reuters mean for $184.86 million. Non-GAAP loss was $0.13 per share, better than predictions for a $0.15 loss.

Health Care

Health Care SPDR (XLV) iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were in firmer. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 0.39%.

In corporate news, BioScrip (BIOS) jumped 14% after Oscar Schafer, chairman of Rivulet Capital, named it as one of his top picks on CNBC's Squawk Box. Schafer, who owns the stock, believes BioScrip's home infusion products should entice a big drug store chain to make an acquisition offer, and that the stock will bounce back from big declines last year.

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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