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Mid-Day ETF Update: ETFs, Stocks Turn Negative As Unexpected Jobless Claims Increase Weigh on Sentiment

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

SPDR S&P 500 ( SPY ): -0.5%

iPath S&P 500 VIX ST Futures ETN ( VXX ): +2%

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

ProShares Trust Ultra VIX Short Term Futures ETF ( UVXY ): +3.8%

Market Vectors Gold Miners ETF ( GDX ): -1.2%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV turned lower. Actively traded PowerShares QQQ (QQQ) was down 1%.

U.S. stocks gave up earlier gains, tracking a reversal in crude oil prices , and weighed by concerns over the U.S. economy following an unexpected surge in weekly unemployment claims.

Jobless claims jumped 20,000 in the latest survey week to 294,000, its highest level in more than a year, suggesting employers are scaling back.

In other economic data news, import prices rose 0.3% in April, missing estimates for a gain of 0.6%, while export prices were up 0.5% versus the consensus estimate to remain unchanged.

Power Play: Consumer

Consumer staples funds were higher, in line with 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.

Meanwhile, 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 lower.

Kohl's (KSS) was down 11.7% after the retailer reported net income fell 87% to $17 million, or $0.09 a share. Adjusted net income was down 55% to $58 million, or $0.31 a share from $127 million, or $0.63 a share a year earlier. That misses the $0.37 estimate compiled by Capital IQ. Net sales fell 3.7% to $3.97 billion, short of estimates for $4.1 billion.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) was down 0.3%. Direxion Daily Financial Bull 3X shares (FAS) was down 0.8% while its bearish counterpart, FAZ, was up 0.7%.

AEGON NV (AEG) was down 11.5% after the insurance provider reported Q1 net income of EUR 143 million ($163 million) compared to EUR 289 million in the year-ago quarter. Revenues rose to EUR 3.56 billion from EUR 2.63 billion in Q1 2015. Analysts' consensus forecasts weren't available for comparison. Commenting on the results, CEO Alex Wynaendts said the company's "underlying earnings and net income for the first quarter were impacted by volatile financial markets, which also had an impact on our capital position. Our Solvency II ratio nonetheless remains well within our target range."

Technology

Tech funds were lower, lagging 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 weaker. SPDR S&P International Technology Sector ETF (IPK) was down 2.2%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 2.8% and Semiconductor Sector Index Fund (SOXX) was down 2.2%.

CPI Card Group (PMTS) was down 46.1% after reporting Q1 sales rose 11.7% to $86.4 million from the year-ago period but missed the CapIQ mean for $88.26 million. Adjusted EPS were $0.13, a penny below estimates. It cut its FY sales outlook to between $335 million and $355 million, below forecasts for $436.42 million. Adjusted EPS are seen between $0.50 to $0.58, below the Street's $0.94. Its board declared a dividend of $0.045 per share is payable on July 7 to stockholders of record at the close of business on June 16. It also approved a stock repurchase plan of up to $20 million, and not to exceed 2,827,105 shares, of its common stock over the next twelve months.

Industrial

Industrial funds were slightly higher, ahead of the broader market. Select Sector SPDR-Industrial (XLI), Vanguard Industrials (VIS) and iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ) were in positive territory.

Revolution Lighting Technologies (RVLT) was up 7.6% after it said its initial forecast on Q2 forecast was for sales of $41.0 to $43.0 million, up 53% YOY. Revolution Lighting reported a Q1 loss per share of $0.09, excluding one-time acquisition costs, wider than the street view of a loss of $0.05, though narrower than the loss of $0.13 reported a year earlier. Revolution revised full year 2016 revenue upward to the $180 million to $190 million range, up from previous $170 million, a 40% rise in revenues YOY (20%+ proforma organic growth). Adjusted EBITDA estimated at 10% to 12% and free cash flow of $10 million. The Street view is $179 million in revenue.

Energy

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

Cheniere Energy (LNG) was up 6.9% after the energy company appointed Jack Fusco as CEO, effective immediately. Fusco succeeds Neal Shear, who has served as Cheniere's interim CEO since December 2015. Fusco joins Cheniere from Calpine Corporation, where he most recently served as executive chairman of the board. Fusco served as CEO and a member of the board of Calpine from August 2008 to May 2014 and as executive chairman from May 2014 through May 11. He will continue to serve as a director on the board of Calpine.

Commodities

Crude was down 0.2%; United States Oil Fund (USO) was up 0.4%. Natural gas was down 0.9% and United States Natural Gas Fund (UNG) was down 0.9%.

Gold was down 0.3%, while silver was down 1.1%. Among rare metal funds, SPDR Gold Trust (GLD) was down 0.6% and iShares Silver Trust (SLV) was down 1.8%.

Health Care

Health care funds were in the red, behind the broader market. Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were in the red. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was down 2.3%.

Parnell Pharmaceuticals Holdings Ltd (PARN) was down 17.4% after the veterinary pharmaceutical company said it has priced an underwritten public offering of 2.55 million of its ordinary shares for just over $4.2 million. Parnell has also granted the underwriters a 30-day option to purchase up to an aggregate of 382,500 additional ordinary shares at the public offering price. The offering is expected to close May 17. The company said that the goal of the offering is to increase its share trading volume, and to attract new strategic and institutional investors.

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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