Mid-Day ETF Update: ETFs, Stocks Mixed on Mixed Earnings Reports, Economic Data

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

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

SPDR Select Sector Fund - Financial ( XLF ): +0.92%

iShares MSCI Emerging Index Fund ( EEM ): +0.2%

United States Oil Fund ( USO ): -1.5%

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

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV turned negative. Actively traded PowerShares QQQ (QQQ) was down 0.1%.

U.S. stocks were mixed, with the Dow Industrials and S&P 500 higher but Nasdaq in negative territory at session's half, as investors digested a slew of mixed earnings reports.

eBay (EBAY), Travelers Cos. Inc. (TRV) and Verizon (VZ) were trading lower after reporting their earnings, while Walgreens Boots Alliance (WBA) and American Express Co. (AXP) were among gainers.

In economic data news, leading economic indicators rose an as-expected 0.2% in September. Earlier, the government reported that weekly jobless claims rose 13,000 to 260,000 in the latest survey week compared to estimates for a 4,000 gain to 250,000. Finally, the Philadelphia Fed business outlook index fell to 9.7 in October from 12.8 the month prior, but was better than expectations for a decline to 7.0.

Looking ahead, Microsoft (MSFT), Paypal (PYPL) and Skechers USA (SKX) will be reporting their results in the after hours session.

Power Play: Technology

Tech funds were lower, modestly behind 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 down 0.8%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.04% and Semiconductor Sector Index Fund (SOXX) was up 0.1%.

Syntel (SYNT) was down 16.4% after the company posted Q3 revenue of $241 million, down 5% from the same quarter a year earlier. Revenue was expected at $249.8 million, according to a Capital IQ poll. Loss per share was $2.58 in the quarter, compared with earnings per share (EPS) of $0.92 a year earlier. Analysts had expected EPS at $0.62, according to Capital IQ. Net loss for the third quarter totaled $217.2 million, compared with net income of $77.7 million a year earlier.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was up 0.3%. Direxion Daily Financial Bull 3X shares (FAS) was up 0.4% while its bearish counterpart, FAZ, was down 0.2%.

RLI Corp. (RLI) was down 10.1% after it reported after hours Wednesday Q3 operating EPS of $0.37 per share, down from $0.70 per share a year earlier and below the $0.58 per share mean estimate. Revenues rose 2.7% year-over-year to $206.4 million and beat the $196.8 million consensus.


Dow Jones U.S. Energy Fund (IYE) was up 0.1% while Energy Select Sector SPDR (XLE) was up 0.2%.

Core Laboratories N.V (CLB) was down 7.9% after it reported late Wednesday Q3 earnings $0.38, in line with analysts' estimates of $0.38, and down from $0.78 a year earlier. Revenue for the company same in at $143.5 million, missing the Street's expected earnings of $145.2 million and far below the $197.3 million revenue from Q3 2015. The company updated its Q4 guidance, which it expects earnings to be between $0.38 and $0.40, versus the consensus of $0.42. Revenue is expected to range between $143 million and $145 million, also below expectations of $148 million.


Crude was down 1.8%. United States Oil Fund ( USO ) was down 1.5%. Natural gas was up 0.03% and United States Natural Gas Fund (UNG) was down 0.2%.

Gold was up 0.6%. SPDR Gold Trust (GLD) was down 0.2%. Silver was down 0.7% while iShares Silver Trust (SLV) was down 0.8%.

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 firmer. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 1.3%

Galena Biopharma (GALE) was up 13.9% after the company said it had presented data on its GALE-301 and GALE-302 cancer immunotherapies for the prevention of cancer recurrence in the adjuvant setting. The company's Chief Medical Officer Bijan Nejadnik said the data "highlights the potential utility of the vaccine in different cancer indications as we plan the next path forward for our clinical program targeting Folate Binding Protein.


Consumer staples funds were lower, 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) weaker.

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 red.

Select Comfort (SCSS) tumbled 11.5% after the company revised its current fiscal year's sales earnings guidance, while reporting worse-than-expected fiscal Q3 earnings drop. Select Comfort said on Wednesday it now expects fiscal 2016 EPS to be between $1.15 and $1.25 per share. That compared to its previous full-year outlook of $1.25 to $1.45, announced in the Q2 earnings statement, released on July 20. The Street view is $1.23 per share. EPS fell to $0.56 in the period ended Oct. 1, from $0.62 in the year-ago period. That missed the $0.57 average estimate of analysts polled by Capital IQ. Q3 sales dropped to $368 million from $374 million year-over-year. That trailed the $391 million analyst consensus.

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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