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Mid-Day ETF Update: ETFs, Stocks Slump as Losses from Boeing, GE Weigh Down Market Sentiment

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

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

SPDR S&P Oil & Gas Explor & Product ( XOP ): +0.7%

SPDR Select Sector Fund - Financial ( XLF ): -0.2%

iShares China Large-Cap ETF ( FXI ): -0.4%

iShares MSCI Emerging Index Fund ( EEM ): -0.3%

Broad Market Indicators

Broad-market exchange-traded funds, including IWM and IVV were lower. Actively-traded PowerShares QQQ (QQQ) was down 0.03%.

US stocks were weaker at session's half, with the blue-chip Dow Jones Industrial Average weighed by losses in Boeing (BA), while General Electric (GE) dented the Standard & Poor's 500.

Boeing shares fell 5% after saying late on Friday that it was cutting production rates on its 737 MAX planes after they were grounded around the world in the wake of two deadly crashes. BofA-Merrill Lynch cut its rating on the stock to neutral from buy and lowered its price target on it to $420 from $480.

GE was down 8% after JPMorgan downgraded it to underweight from neutral and cut its price target to $5 from $6 and after the European Commission said that it had fined the conglomerate 52 million euros ($58.5 million) for providing what it described as "incorrect information" during its investigation of GE's planned acquisition of blade manufacturer LM Wind.

In economic data news, factory orders fell 0.5% in February after a revised unchanged January reading and a 0.1% rise in December. The durable orders component was not revised from the 1.6% drop reported in the advance report. The volatile transportation component dropped 4.5% after a revised 0.4% January increase. Excluding transportation, orders were up 0.3% from a revised 0.1% decline.

Power Play: Consumer

Consumer Staples Select Sector SPDR (XLP) was up 0.2% 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 0.04% while SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were lower.

New Age Beverages (NBEV) was up 21% as the organic and natural beverage manufacturer said it has expanded its Marley brand's partnership with Walmart (WMT). The deal represents the company's first national account penetration, the company said. It has begun shipments of Marley brand coffee and relaxation drinks to Walmart distribution centers across the US. New Age said it will be dedicating "significant marketing efforts" behind its Marley brand beginning in late April. Following the initial shipment to distribution centers this month, stores are given two weeks to set the shelves, New Age said. WMT shares were little changed.

Winners and Losers

Financial

Select Financial Sector SPDRs ( XLF ) was down 0.1%. Direxion Daily Financial Bull 3X shares (FAS) was down 0.6%; Direxion Daily Financial Bear 3X Shares (FAZ) was up 0.5%.

GAIN Capital Holdings Inc. (GCAP) rose 0.5% after the provider of online trading services said March retail OTC trading volume dropped 35.7% year-over-year to $168.9 billion as three-month trailing active OTC accounts retreated 11% from the year-earlier period to 70,051. In a statement released Monday, the company said the number of futures contracts in March declined 19.4% from a year earlier to 622,194 but was up by 14.7% sequentially from the 542,556 in February.

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 lower.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 0.4% and Semiconductor Sector Index Fund (SOXX) was down 0.4%.

Symantec (SYMC) rose more than 6% after Goldman Sachs upgraded its rating for shares to buy from neutral. The firm also boosted its price target to $28 from $23. Symantec's average rating among analysts is a hold, with an average price target of $23.

Industrial

Select Sector SPDR-Industrial (XLI) fell more than 1% and other funds iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ) and Vanguard Industrials (VIS) were lower as well.

In the GE fine case, European Commission said that the fine had no impact on its approval of the transaction under EU merger rules, as this was based on rectified information from General Electric provided after the Commission alleged that the erroneous information had been provided. In January 2017, GE notified its proposed acquisition of LM Wind. In the notification, the EC said that GE had stated that it did not have any higher power output wind turbine for offshore applications in development, beyond its existing 6 megawatt turbine. However, through information collected from a third party, the commission said that it had found that GE was simultaneously offering a 12 megawatt offshore wind turbine to potential customers. As a result, GE withdrew its notification of the acquisition of LM Wind on Feb. 2, 2017 and on Feb. 13, 2017 GE re-notified the same transaction, this time including complete information on its future project, according to the EC. On March 20, 2017, the Commission approved the proposed acquisition.

Energy

Dow Jones U.S. Energy Fund (IYE) was up 0.5% and Energy Select Sector SPDR (XLE) was up 0.5%.

ReneSola Ltd. (SOL) rose marginally after it posted a Q4 loss of $4.48 million, down from the net income of $1.7 million a year earlier. No indication was provided on EPS. Revenue in the period plummeted to $5.57 million from $64.8 million in the year-earlier period, missing management's guidance for sales in the range of $20 million to $30 million released Nov. 19. Street forecasts were for $24.4 million. The company guided Q1 revenue in the range of $8 million to $10 million, and 2019 sales in the range of $150 million to $170 million.

Commodities

Crude was up 1.5%; United States Oil Fund (USO) was up 1.5%. Natural gas was up 2.1% and the United States Natural Gas Fund (UNG) was up 1.8%.

Gold was up 0.5%, and SPDR Gold Trust (GLD) was up 0.4%. Silver was up 0.7% and iShares Silver Trust (SLV) was up 0.9%.

Health Care

Health Care SPDR (XLV) was down 0.3% and other funds iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were lower. Meanwhile, Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was down 0.5%.

Valeritas (VLRX) was up 8% after it said that its V-GoAL randomized controlled trial of 415 patients across 52 sites showed that after four months of use, V-Go users lowered their average blood sugar levels while using 24% less total daily insulin at a lower cost per day, in comparison to standard treatment optimization. V-Go is a wearable insulin delivery device.

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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