Mid-Day ETF Update: ETFs, Stocks Turn Positive Following Weak Jobs Report, Dovish Dudley Comments

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

SPDR S&P 500 ( SPY ): +0.8%

VelocityShares 3X Long Crude ETN ( UWTI ): +12.9%

iShares MSCI Emerging Index Fund ( EEM ): +1.8%

ProShares Trust Ultra VIX Short Term Futures ( UVXY ): -5.2%

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): -2.6%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were in inching higher at mid-day. Actively traded PowerShares QQQ (QQQ) was up 0.8%.

U.S. stocks were rebounding from earlier weakness amid views the Federal Reserve will likely increase the interest rate more slowly due to Friday's weak jobs report. Comments by New York Fed President William Dudley also helped lift stocks. Dudley, who gave a speech in New Jersey, had reiterated the Fed's plan to maintain interest rates until the economy was showing firm and sustained growth.

Economic data was mixed. The purchasing managers index for the services sector rose to 59.2 during March from February's final 57.1 reading. Meanwhile, the Institute for Supply Management found non-manufacturing activity had contracted from the month prior. The March ISM fell to 56.5 from February's 56.9, missing expectations for a smaller decline to 56.7. Also, the Labor Market Conditions Index fell to a negative 0.3 reading for March from February's 2.0 score. That was the lowest level in the indicators since March 2012 and added to expectations that a June rate increase was off the table.

Power Play: Consumer

Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were in the green.

Consumer Discretionary Select Sector SPDR (XLY) , SPDR S&P Retail (XRT) , PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were also firmer.

Tesla Motors (TSLA) was up 8% after the electric carmaker said it delivered 10,030 cars in Q1, setting a new quarterly record. Deliveries rose 55% year-on-year and were above the company's guidance of 9,500 units. The numbers suggest Tesla is on track to deliver more than 31,655 vehicles sold last year, the Wall Street Journal noted. Going forward, Tesla said it will publish the number of new car deliveries within three days of quarter end, since inaccurate sources of information have sometimes been used by others to project the number of vehicle deliveries.

Winners and Losers


Select Financial Sector SPDRs (XLF) was up 0.4%. Direxion Daily Financial Bull 3X shares (FAS) was up 1.2%, while Direxion Daily Financial Bear 3X Shares (FAZ) was down 1.1%.

Western Union Co. (WU) was down 2% after shares of the payment services provider were downgraded by Susquehanna to neutral from positive.


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 higher. SPDR S&P International Technology Sector ETF (IPK) was up 1.4%.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 0.01%, and Semiconductor Sector Index Fund (SOXX) was up 0.2%.

Resonant Inc. (RESN) was down 33.6% after the company reported late Thursday that a development agreement with its first customer has been terminated and that it must pursue commercialization of its designs with this customer by working directly with the filter manufacturer. In February, the developer of filter designs for radio frequency front-ends used in the mobile device industry said its management discussed transitioning the relationship with its first customer from development to commercialization. Resonant said it plans to collaborate with the filter manufacturer to continue submitting improved product designs, which may be considered by the customer for use in its product modules.


Dow Jones U.S. Energy Fund (IYE) was up 2% and Energy Select Sector SPDR (XLE) was up 1.8%.

Duke Energy (DUK) was up 2% after the electric-power holding company said it reached agreements with Goldman Sachs (GS) and JPMorgan (JPM) to repurchase an aggregate of $1.5 billion of its common stock under an accelerated stock-repurchase program. The company said it will make a $750 million payment to each of the banks Monday, and will receive around 16.6 million shares in aggregate in return. This is around 85% of the total shares Duke Energy expects to buy back under its accelerated buyback program. This comes after the company completed the sale of its non-regulated Midwest generation business to Dynegy (DYN) on April 2 for $2.8 billion.


Crude was up 5.1%; United States Oil Fund (USO) was up 4.4%. Natural gas was down 1.4% and United States Natural Gas Fund (UNG) was down 2.5%.

Gold was up 2%, and silver was down 2.2%. Among rare metal funds, SPDR Gold Trust (GLD) was up 1.5% and iShares Silver Trust (SLV) was up 2.4%.

Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were firmer. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 0.2%.

Targacept (TRGT) was down 9.8% after the company disclosed its reviewing its merger agreement between Talos Merger Sub, a subsidiary of Targacetop and Catalyst Biosciences in light of the termination of a research and licensing agreement between Catalyst and Wyeth, a unit of Pfizer (PFE). In a Securities and Exchange Commission filing Targacept said Catalyst let it know that Pfizer is exercising its right to terminate the research and license agreement which covers the development and commercialization of Catalyst's leading human Factor VIIa product candidate for the treatment of hemophilia and surgical bleeding indications. Targacept said its reviewing the implications of this event on its proposed merger. PFE was up 1%.

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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