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Mid-Day ETF Update: ETFs, Stocks Mixed as Trade War Concerns, Weak Jobs Report Weigh

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

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

SPDR Select Sector Fund - Financial ( XLF ): +0.4%

SPDR S&P 500 ( SPY ): +0.2%

iShares Inc iShares MSCI Brazil ETF ( EWZ ): +3.0%

VanEck Vectors Gold Miners ETF ( GDX ): +1.2%

Broad Market Indicators

Broad-market exchange-traded funds, including IWM and IVV were mixed. Actively traded PowerShares QQQ (QQQ) was up 0.04%.

US stocks were mixed at session's half, as investors evaluated the newly proposed tariffs on US goods by China and fresh readings on the US job market.

July nonfarm payrolls increased 157,000, missing the 190,000 consensus, but the prior months' gains were revised to 248,000 from 213,000. The unemployment rate ticked down to 3.9% from 4.0%, as expected. Hourly earnings were up 0.3% in line with consensus.

The June trade deficit widened 7.3% to a -$46.3 billion after May's 6.3% narrowing to -$43.2 billion, revised from -$43.1 billion.

The Markit services Purchasing Managers' Index (PMI) fell 0.5 points to 56.0, below expectations for 58.8, in the final July reading from 56.5 in June.

And, the July Institute for Supply Management (ISM) non-manufacturing index dropped 3.4 points to 55.7, much weaker than the 58.8 expected, after edging up 0.5 ticks to 59.1 in June.

Power Play: Technology

Technology Select Sector SPDR ETF (XLK) was down 0.1% and other tech funds 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.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 0.5% and Semiconductor Sector Index Fund (SOXX) was down 0.06%.

Symantec (SYMC) rose 11% after it reported Q1 revenue of $1.165 billion, down from $1.228 billion in the year-ago quarter but ahead of the analyst consensus of $1.149 billion on Capital IQ. Non-GAAP earnings were $0.34 per share, up from $0.33 per share a year ago and a penny ahead of the Street view. For Q2, the company expects revenue in the range of $1.13 to $1.16 billion, vs. expectations of $1.18 billion. EPS is seen at $0.31 to $0.35, vs. Street estimates of $0.37 per share. For the full year, it is targeting revenue of $4.67 to $4.79 billion, below expectations of $4.83 billion. EPS is targeted at $1.47 to $1.57, vs. estimates of $1.56 per share.

Winners and Losers

Financial

The Select Financial Sector SPDRs ( XLF ) was up 0.3%. Direxion Daily Financial Bull 3X shares (FAS) was up 0.8% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was down 0.9%.

MFA Financial (MFA) was down 4.7% after it said it has priced its public offering of 50 million shares of common stock for total expected gross proceeds of $389 million. The underwriters have been granted an option to purchase up to an additional 7.5 million shares. The company intends to use the net proceeds for general corporate purposes. The offering is expected to close on Aug. 7, subject to customary closing conditions.

Energy

Dow Jones US Energy Fund (IYE) was down 0.7% and Energy Select Sector SPDR (XLE) was down 0.7%.

Foresight Energy (FELP) fell nearly 3% after it reported its net loss widened in Q2. Net loss per unitholder widened to $0.18 in the June quarter, from $0.12 a year ago. Q2 revenue increased to $271.4 million from $207 million. One analyst had predicted a net loss of $0.10 per unitholder on revenue of $250.8 million, according to Capital IQ data.

Commodities

Crude was down 1.7%. United States Oil Fund (USO) was down 1%. Natural gas was down 0.5% while United States Natural Gas Fund (UNG) was up 1.6%.

Gold was down 0.5%. SPDR Gold Trust (GLD) was up 0.5%. Silver was down 0.8%, while iShares Silver Trust (SLV) was up 1%.

Consumer

Consumer Staples Select Sector SPDR (XLP) was up 1.2% and Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones U.S. Consumer Goods (IYK) were higher.

Consumer Discretionary Select Sector SPDR (XLY) was up 0.1% while retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were higher.

The Kraft Heinz Company (KHC) rose nearly 9% after the food and beverage giant reported Q2 adjusted earnings of $1.00 per share, up from $0.98 in the comparable period a year ago and exceeding the estimate of $0.92 from analysts polled by CapIQ. Total revenue of $6.69 billion was up from $6.64 billion in the same period a year ago and topped the Street projection of $6.57 billion.

Health Care

Health Care SPDR (XLV) was up 0.5% and other health care funds Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were firmer. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was 0.9% lower.

TESARO (TSRO) fell more than 16% after it reported net loss widened to $3.04 per share in Q2 from $2.82 a year earlier, sharply worse than analysts' estimates of $2.58 loss per share in a Capital IQ poll. Revenue rose to $57.21 million from $29.46 million a year ago, but still lagged the $65.50 million estimate. For 2018, the oncology-focused company scaled back its revenue forecast to $250 to $265 million from $310 to $345 million previously.

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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