Mid-Day ETF Update: ETFs, Stocks Rally as Pro-Growth Tax Cuts Drive Indices to Set New Record Highs

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

SPDR Select Sector Fund - Financial ( XLF ): +1.1%

Direxion Daily Gold Miners Index Bull 3X Shares ( NUGT ): -3.8%

Direxion Daily Junior Gold Miners Index Bull 3X Shares ( JNUG ): -3.6%

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): -2.4%

SPDR S&P 500 ( SPY ): +0.4%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were higher. Actively traded PowerShares QQQ (QQQ) was up 0.5%.

U.S. stocks maintained their gains at session's half, led by the financial and industrial sectors and as major benchmark indices set new record highs for the third consecutive day. Gains were fueled by expectations for pro-growth tax and regulatory policies by the Trump administration, as well as this weekend's amicable meeting between President Trump and Japanese prime minister Shinzo Abe.

Crude oil was down even as the Organization of the Petroleum Exporting Countries (OPEC) said January oil production fell by 890,000 barrels a day compared with December, confirming that members of the OPEC and other oil-producing countries have been following their agreement to cut production.

Power Play: Consumer

Consumer staples funds were firmer, in line with the broader market. Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples ETF (VDC), and iShares Dow Jones US Consumer Goods (IYK) were higher.

Likewise, 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 green.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was up 1.1%. Direxion Daily Financial Bull 3X shares (FAS) was up 2.6%, while its bearish counterpart, FAZ, was down 2.5%.

First Data (FDC) was up 3.4% after it reported Q4 adjusted net profit of $365 million, up from $271 million in the prior year period. On a per share basis, net income for the quarter was $0.39 per share. Capital IQ provided a Street estimate of $0.36 per share. Total revenues were $2.94 billion, down from $2.96 billion a year ago. The Street consensus called for revenues of $3 billion.


Tech stocks were higher, but 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 positive territory. Meanwhile, SPDR S&P International Technology Sector ETF (IPK) was up 1.1%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.2% and Semiconductor Sector Index Fund (SOXX) was up 0.1%.

Mobileye N.V (MBLY) was up 7.4% after Reuters said Volkswagen said it would cooperate with Mobileye on a road experience management (REM) system. It said Volkswagen is aiming to realize new navigation standard for autonomous driving with Mobileye from 2018.


Industrial funds Select Sector SPDR-Industrial (XLI), iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ), and Vanguard Industrials (VIS) were firmer, above the broader market.

Insperity (NSP) was up 7.8% after it reported a Q4 adjusted earnings of $0.58 per diluted share compared with an income of $0.33 per share a year ago, beating the $0.54 average EPS estimate from analysts polled by Capital IQ. Sales jumped to $729.1 million from $650 million a year ago, coming in below the $732-million consensus. In a statement released Monday, the company said its adjusted Q1 EPS is expected to come in a range of $1.78 - $1.87, above the $1.75 average estimate; and FY EPS of $4.21 - $4.42, ahead of the $4.12 consensus.


Dow Jones U.S. Energy Fund (IYE) was down 0.3% and Energy Select Sector SPDR (XLE) was down 0.2%.

Statoil (STO) was down 0.1% after it said it awarded contracts worth a total of NOK2.7 billion ($322.5 million) to Norway's Simon Mokster Shipping AS and Havila Shipping ASA for four emergency response and rescue vessels. Simon Mokster will provide three vessels while Havila will provide one vessel. The Norwegian oil major said the vessels will be part of its area-wide emergency response on the Norwegian continental shelf. The contracts will run for seven years with five one-year extension options, Statoil noted.


Crude was down 1.8%. United States Oil Fund (USO) was down 1.5%. Natural gas was down 2.5% while United States Natural Gas Fund (UNG) was down 2.5%.

Gold was down 0.9%. SPDR Gold Trust (GLD) was down 0..8%. Silver was down 0.8% while iShares Silver Trust (SLV) was down 0.7%.

Health Care

Health care funds were higher, but behind the broader market. Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were firmer. Meanwhile, Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.8%.

Zeltiq Aesthetics, Inc. (ZLTQ) was up 12.7% after it agreed to be acquired by Allergan (AGN) for $56.50 per share, or $2.48 billion. The acquisition is subject to approval by Zeltiq shareholders. AGN shares were up 0.6%.

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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