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Mid-Day ETF Update: ETFs, Stocks Mostly Lower as Wall Street Continues to Digest Earnings

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

iShares MSCI Emerging Index Fund (EEM): -1.4%

iShares Inc iShares MSCI Brazil ETF (EWZ): -3.2%

SPDR S&P 500 (SPY): -0.06%

VanEck Vectors Gold Miners ETF (GDX): +0.67%

SPDR Select Sector Fund - Financial (XLF): -0.1%

Broad Market Indicators

Broad-market exchange-traded funds, including IWM and IVV were higher. Actively-traded PowerShares QQQ (QQQ) was down 0.15%.

US stocks were mixed at session's half, with the Dow Industrials and S&P 500 trading lower while Nasdaq made some headway with modest gains. Investors were digesting more blue-chip earnings and looked ahead to a host of top tech names due to report later.

Among the companies that have already released their earnings results, Snap (SNAP) was trading lower even after the social-media company beat analysts' expectations in the first quarter, but Wedbush Securities said the "road to profitability appears to have gotten longer." eBay (EBAY) rose 4% as it raised guidance after better-than-expected results.

In other earnings, Caterpillar (CAT) was also in negative territory, giving back pre-market gains made after its first-quarter results topped Street views. Boeing (BA), meanwhile, logged gains even after earnings and revenue came in below expectations.

Facebook (FB), Microsoft (MSFT) and Tesla (TSLA) will be reporting their financial results in the after hours session.

Power Play: Industrial

Select Sector SPDR-Industrial (XLI) fell marginally, and other industrial funds iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ) and Vanguard Industrials (VIS) were in the red.

As mentioned, Caterpillar (CAT) fell more than 2% after it reported Q1 adjusted profit per share of $2.94, up from $2.82 during the year-ago quarter, beating the Capital IQ consensus forecast of $2.86. Consolidated sales and revenues for the quarter were $13.47 billion, up from $12.86 billion for the same period last year, and ahead of the analyst forecast of $13.36 billion. The company said that due to a $0.31 per share discrete tax benefit it is revising its profit per share outlook for full-year 2019 to a range of $12.06 to $13.06 from its previous outlook range of $11.75 to $12.75.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) was down 0.1%. Direxion Daily Financial Bull 3X shares (FAS) was up 0.3%; Direxion Daily Financial Bear 3X Shares (FAZ) was down 0.3%.

Moody's (MCO) rose nearly 3% after the credit ratings and research company reported Q1 adjusted earnings of $2.07 per share, up from $2.02 in the same period a year ago and topping the estimate of $1.94 from analysts polled by Capital IQ. Total revenue of $1.14 billion was up from $1.13 billion in the same period a year ago and exceeded the Street projection of $1.13 billion. Moody's affirmed full year 2019 adjusted EPS guidance in the range of $7.85 to $8.10, straddling the Street estimate of $7.84. The company continues to expect full year revenue to increase in the mid-single-digit percent range from $4.44 billion in 2018. Analysts anticipate $4.66 billion in revenue for 2019.

Technology

Technology Select Sector SPDR ETF (XLK) was up 0.1%; 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 firmer.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 1.8% and Semiconductor Sector Index Fund (SOXX) was up 1%.

STMicroelectronics N.V (STM) rose more than 3% after the European semiconductor company reported Q1 adjusted profit of $0.20 per share, just below the $0.21 the average Street estimate from four analysts. Net revenues were $2.08 billion, slightly below the $2.13 billion expected by analysts. For Q2, the company said it expects revenues to increase about 2.4% sequentially, plus or minus 350 basis points.

Energy

Dow Jones U.S. Energy Fund (IYE) was down 1.2% and Energy Select Sector SPDR (XLE) was down 1.2%.

Anadarko Petroleum (APC) gained nearly 12% after Occidental Petroleum (OXY) offered to buy the company for $76 per share in cash and stock in a bid to scuttle Chevron's (CVX) deal to buy Anadarko for $65 per share. Under the $57 billion proposal, including assumption of debt, Anadarko shareholders will receive $38 in cash and 0.6094 shares of Occidental for each share of Anadarko. Occidental expects the deal to generate $3.5 billion in annual free cash flow improvements that are expected to be achieved by 2021, and to be significantly accretive to the company's cash flow and free cash flow. On April 12, Anadarko agreed to be acquired by Chevron in a cash-and-stock deal where Anadarko shareholders would receive $16.25 in cash and 0.3869 shares of Chevron for each share of Anadarko. Chevron said then the total enterprise value of the deal was $50 billion. OXY shares were down more than 2% and CVX shares were down nearly 3%.

Commodities

Crude was down 0.8%; United States Oil Fund (USO) was down 0.6%. Natural gas was up 0.1% and United States Natural Gas Fund (UNG) was down 0.1%.

Gold was up 0.5%, and SPDR Gold Trust (GLD) was up 0.4.%. Silver was up 1.1% and iShares Silver Trust (SLV) was up 0.9%.

Health Care

Health Care SPDR (XLV) was up 0.08% and other funds iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were higher. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was down 1%.

Midatech Pharma (MTP) shares were more than 23% higher after the specialty pharmaceutical company narrowed its net loss, while revenues nearly doubled in 2018. Net loss for the year was GBP0.17 ($0.22) per share, versus last year's net loss of GBP0.23 per share. Revenues came in at GBP1.94 billion, up from the GBP989 million reported for the year-earlier period.

Consumer

Consumer Staples Select Sector SPDR (XLP) was up 0.1% while iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were in the green.

Consumer Discretionary Select Sector SPDR (XLY) was up 0.2% and SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were firmer.

Tupperware Brands (TUP) fell nearly 7% after it reported Q1 adjusted earnings of $0.90 per share compared to $0.91 per share last year. The Capital IQ consensus for EPS was $0.91. The home products maker posted sales of $487.3 million, down from $542.6 million in the prior-year period and below the CapIQ forecast of $496.6 million. For Q2, the company expects adjusted EPS in the range of $1.00 to $1.05. It also expects sales to be down 6% to 8%. For full-year 2019, it anticipates EPS of $4.03 to $4.14. It also expects sales to be down 3% to 5%.

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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