Active broad-market exchange-traded funds in Friday's regular session:
iShares MSCI Emerging Index Fund ( EEM ): +1.2%
VanEck Vectors Gold Miners ETF ( GDX ): +8.8%
SPDR S&P 500 ( SPY ): -0.4%
SPDR Select Sector Fund - Financial ( XLF ): -1.5%
iPath S&P 500 VIX ST Futures ETN ( VXX ): +0.6%
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM and IVV remained in the red. Actively traded PowerShares QQQ (QQQ) was down 0.6%.
U.S. stocks were also weaker at session's half, after the disappointing May jobs report raised doubts about the U.S. economy's ability to withstand a rate hike.
The Labor Department reported that the economy created 38,000 non-farm jobs in May, missing estimates for an increase of 158,000. The economy saw the slowest pace of job growth in more than five years. Additionally, April jobs was revised down to 123,000 from 160,000, and March was revised down to 186,000 from 208,000. Although the jobless rate fell to 4.7% from 5.0%, this was largely blamed on a drop in labor market participation. However, taking into account the 39,000 striking Verizon (VZ) employees, non-farm payrolls would have increased by 72,000.
In other economic data news, the trade deficit widened to $37.4 billion in April, but this was because March was revised down to a deficit of $35.5 billion from $40.4 billion. April factory orders grew 1.9% while March was revised upward to up 1.7% from up 1.1%. Finally, the Institute for Supply Management non-manufacturing index fell to 52.9 in May from 55.7 the month prior, missing the 55.5 estimates.
Power Play: Health Care
Health care funds were lower, in step with the broader market. Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were in the green. Meanwhile, Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was down 1.4%.
Lion Biotechnologies (LBIO) was up 38% after after the biotechnology company said it appointed Maria Fardis as CEO on June 1. In a separate release issued today, the company announced that it agreed on $100.0 million equity financing led by Quogue Capital, OrbiMed Advisors, Frazier Healthcare Partners and Broadfin Capital. Fardis succeeds Elma Hawkins, who served as the CEO since January 2015. Fardis has extensive experience in drug development and novel cancer treatments. Prior to joining Lion Biotechnologies, Fardis was chief operating officer at Acerta Pharma, a Dutch biotech company. Before joining Acerta, Fardis held the position of chief of oncology operations and alliances at Pharmacyclics LLC. Previously, Fardis held a number of scientific and management roles at Gilead Sciences (GILD).
Winners and Losers
Select Financial Sector SPDRs ( XLF ) was down 1.6%. Direxion Daily Financial Bull 3X shares (FAS) was down 4.3% while its bearish counterpart, FAZ, was up 4.4%.
Nasdaq Inc. (NDAQ) was down 0.5% after the stock and securities exchange company last night said it priced a $500 million public offering of 3.850% senior notes due 2026. The company plans to use net proceeds from the offering, together with cash as well as possible borrowings under its senior credit facility, to fund its $1.1 billion cash purchase of U.S. Exchange Holdings, the indirect owner of the International Securities Exchange, the ISE Gemini and the ISE Mercury options exchanges, from Deutsche Boerse and Eurex Frankfurt AG.
Tech funds were lower, but still ahead of 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 weaker. SPDR S&P International Technology Sector ETF (IPK) was flat.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 0.6% and Semiconductor Sector Index Fund (SOXX) was down 0.2%.
ViaSat (VSAT) was up 3% but competitor Gogo (GOGO) was down 14.3% in heavy volume after American Airlines (AAL) chose to split its in-flight Internet service needs between the two companies. American Airlines selected ViaSat to outfit its new Boeing 737 MAX fleet with its in-flight internet service and Gogo's new 2Ku service for almost 140 planes. About 150 of those planes will be retired and American hasn't decided which provider it will use to upgrade the remaining 400 to satellite-based service, said Casey Norton, a spokesman for the carrier, according to Bloomberg.
Dow Jones U.S. Energy Fund (IYE) was down 0.5%; Energy Select Sector SPDR (XLE) was down 0.6%.
Stone Energy (SGY) was down 5.3% after the company said in a SEC filing it has not reached agreement with bondholders on material terms of a restructuring proposal. It said it has requested its lenders to provide a forbearance with respect to the next deficiency payment under the company's revolving credit facility, which is due this month. It added that it continues to analyze various strategic alternatives to address its liquidity and capital structure, including strategic and refinancing alternatives, asset sales and a Chapter 11 bankruptcy proceeding.
Crude was down 1.7%; United States Oil Fund (USO) was down 0.4%. Natural gas was up 0.2% and United States Natural Gas Fund (UNG) was up 0.3%.
Gold was up 2.4%, while silver was up 2.1%. Among rare metal funds, SPDR Gold Trust (GLD) was up 2.3% and iShares Silver Trust (SLV) was up 0.4%.
Consumer staples funds were firmer, outperforming the broader market. Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK) and Vanguard Consumer Staples ETF (VDC) were in positive territory.
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 also firmer.
Zumiez (ZUMZ) was down 6% after it reported that Q1 sales decreased 2.6% to $173.0 million from the year-ago period but just beat the CapIQ mean for $172.40 million. Same-store sales decreased 7.5%. It swung to a net loss of $0.08 per share from last year but topped expectations for an $0.11 loss. May total net sales decreased 2.9% to $50.0 million. It seeds Q2 sales between $172 million to $176 million resulting in net loss per diluted share of approximately -$0.09 to -$0.13. Forecasts are for sales of $181.3 million and a nickel in earnings per share.It sees same-store sales down 6% to 8%.
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