Active broad-market exchange-traded funds in Thursday's regular session:
SPDR Select Sector Fund - Financial ( XLF ): +0.5%
iPath S&P 500 VIX Short Term Futures ETN ( VXX ): +4.2%
PowerShares QQQ Trust, Series 1 ( QQQ ): -1.7%
SPDR S&P 500 ( SPY ): -0.8%
iShares MSCI Emerging Index Fund ( EEM ): -1.3%
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM and IVV were lower. Actively traded PowerShares QQQ ( QQQ ) was down 1.7%.
U.S. stocks were lower at session's half, reversing all of Wednesday's gain and dragging the Nasdaq into the red for June, as the slump in the technology sector resumed.
The finance sector gained ground on both the results of the Fed's stress test as well as rising global bond yields.
In economic data news, the third GDP reading for Q1 was 1.4%, ahead of forecast of 1.2%. Jobless claims came in at 244,000 in the June 24 week vs estimate of 241,000, according to data compiled by Econoday.
Power Play: Consumer
Consumer Staples Select Sector SPDR (XLP) and other consumer staples funds Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were weaker.
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 lower.
Rite Aid Corporation (RAD) sank 27.7% to the lowest level since July 2013 after the company and Walgreens Boots Alliance (WBA) terminated their merger deal based on doubts on obtaining clearance from the Federal Trade Commission. A related divestiture agreement with Fred's (FRED) has also been canceled. Instead, Walgreens Boots Alliance has agreed to acquire 2,186 stores,distribution assets and inventory from Rite Aid for an all-cash purchase price of $5.18 billion. Under the terms of the agreement, Rite Aid has the option to purchase generic drugs that are sourced through an affiliate of WBA at cost, substantially equivalent to Walgreens, for a period of 10 years. Walgreens will pay Rite Aid a termination fee in the amount of $325 million in cash. In December, Fred's Pharmacy agreed to 865 stores that would be divested as part of the merger. The company will receive $25 million as reimbursement for expenses associated with the terminated deal.
Winners and Losers
Select Financial Sector SPDRs ( XLF ) was up 0.3%. Direxion Daily Financial Bull 3X shares (FAS) was down 0.4%, while its bearish counterpart, FAZ, was up 0.4%.
Wells Fargo & Company (WFC) was up 2.2% after it said that the Federal Reserve Board has not objected to the company's 2017 capital plan under the recently concluded Comprehensive Capital Analysis and Review. Wells Fargo's 2017 capital plan covers the four-quarter period from the third quarter of 2017 through the second quarter of 2018. As part of this plan, the company expects to increase the third quarter 2017 common stock dividend to $0.39 per share from $0.38 per share, subject to approval by the company's board. The plan also includes up to $11.5 billion of common stock repurchases for the same four-quarter period. For the previous four quarters ended first quarter 2017, the company repurchased $8.3 billion of common stock.
Tech funds 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 the red. Meanwhile, SPDR S&P International Technology Sector ETF (IPK) was down 1.5%.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 2.9% while Semiconductor Sector Index Fund (SOXX) was down 2.7%.
Kulicke and Soffa Industries (KLIC) was down 4.8% after it said it expects Q3 revenue to come in at the high end of its prior guidance range of $235 to $245 million. Analysts are expecting revenue of $240 million, according to Capital IQ. For the full year, revenue is seen at $790 million, plus or minus $25 million, vs. the Street view of $752 million. The company expects one-time, non-recurring charges and credits in Q3, consisting of a favorable foreign tax credit, goodwill impairment and restructuring charges collectively resulting in a non-cash expense of $35.2 million and a cash gain of $18.9 million.
Dow Jones U.S. Energy Fund (IYE) was up 0.5% and Energy Select Sector SPDR (XLE) was up 0.5%.
Energy Transfer Partners (ETP) was up 1% after it said that it has entered into a memorandum of understanding with Korea Gas Corporation (Kogas) to study the feasibility of joint participation in the Lake Charles LNG liquefaction project located in Lake Charles, Louisiana. The facility is owned 60% by Energy Transfer Equity (ETE), and the remaining 40% is owned by Energy Transfer Partners (ETP). Houston-based BG LNG Services, a subsidiary of Royal Dutch Shell (RDS.A, RDS.B), will also participate in the study.
Crude was up 1%. United States Oil Fund (USO) was up 1%. Natural gas was up 0.8% while United States Natural Gas Fund (UNG) was up 1%.
Gold was down 0.9%. SPDR Gold Trust (GLD) was up 0.2%. Silver was 0.9% lower while iShares Silver Trust (SLV) was up 0.5%.
Health care funds Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were weaker. Likewise, Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 1.6%.
CHF Solutions (fka Sunshine Heart) (CHFS) said researchers at Stanford University got the Food and Drugs Administration's investigational device exemption (IDE) approval to evaluate the safety and effectiveness of the company's Aquadex FlexFlow Aquapheresis System. The randomized, multi-center and non-blinded clinical study will assess up to 45 children and young adults ages 6 months to 21 years with heart failure and diuretic-resistant fluid overload, according to a statement. The study seeks to determine whether Aquapheresis therapy is associated with greater weight loss and a non-inferior rate of renal dysfunction compared to optimal medical therapy. In addition, the impact on heart failure symptoms, adverse outcomes and the need for medical management will be evaluated as secondary endpoints, the statement noted. CHFS shares were up 17.7%.
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