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EEM

Mid-Day ETF Update: ETFs, Stocks Turn Positive on Rebound in Oil, Upbeat Economic Data

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

SPDR Select Sector Fund - Financial ( XLF ): -0.5%

iShares MSCI Emerging Index Fund ( EEM ): +0.7%

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): +0.6%

United States Oil Fund ( USO ): +1.8%

SPDR S&P 500 ( SPY ): +0.1%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were firmer. Actively traded PowerShares QQQ (QQQ) was down 0.01%.

U.S. stocks turned modestly higher at session's half, with a rebound in oil and strength in the healthcare sector ending a two-day losing streak for the Dow and S&P 500. The Nasdaq Composite was higher for a second day as a rally in the biotech sector offset losses for large cap tech stocks.

Thursday's economic data amplified the upbeat tone on Wall Street as initial jobless claims rose 3,000 but continued to hover at a 40-year low of 241,000.

Home prices rose again in April by 0.7% according to a monthly survey by the Federal Home Finance Agency. This exceeded +0.5% expectations and following an upward revised 0.7% gain in March.

Leading economic indicators were up 0.3% last month, while the Kansas City Fed composite index improved to 11.0 from 8.0.

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) slipped lower.

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 in the red.

Sears Canada (SRSC) fell 25.1% to reach a record low after the company said it applied for bankruptcy protection to the Ontario Superior Court. In a statement earlier this morning, the retailer said the request to the court was "in order to continue to restructure its business."

"The brand reinvention work Sears Canada has begun requires a long-term effort, but the continued liquidity pressures facing the company as well as legacy components of its business are preventing it from making further progress and from restructuring its legacy assets and businesses outside of a Companies' Creditors Arrangement Act proceeding," the company said in its statement.

Winners and Losers

Financial

Select Financial Sector SPDRs ( XLF ) was down 0.5%. Direxion Daily Financial Bull 3X shares (FAS) was down 1.1%, while its bearish counterpart, FAZ, was up 1%.

PennyMac Financial Services (PFSI) was up 5.5% after it said after market close on Wednesday that it has authorized a stock repurchase program under which the company may repurchase up to $50 million of its outstanding class A common stock. The company will finance the stock repurchase program through cash on hand.

Technology

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 firmer. SPDR S&P International Technology Sector ETF (IPK) was up 0.8%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.7% while Semiconductor Sector Index Fund (SOXX) was down 0.04%.

Accenture (ACN) was down 4.5% after it reported fiscal Q3 adjusted EPS of $1.52 per share, up from $1.41 per share a year earlier and matching the consensus provided by Capital IQ. Revenues rose to $8.87 billion from $8.43 billion a year earlier, beating expectations for $8.82 billion. For FY17, Accenture expects adjusted EPS of $5.84 to $5.91 per share, up from a prior view of $5.70 to $5.87 per share and straddling the $5.86 per share average estimate. For Q4, the company expects net revenues of $8.85 billion to $9.10 billion, also straddling the $8.94 billion mean estimate. In FY17, sales growth is expected to come in a range of 6%-7% versus prior forecasts of 6%-8%.

Energy

Dow Jones U.S. Energy Fund (IYE) was up 0.4% and Energy Select Sector SPDR (XLE) was up 0.2%.

Statoil ASA (STO) was up 1.2% after it said it awarded a contract to AET, a petroleum and chemical tanker operator, for operating two specialist DP2 offshore loading shuttle tankers (OLSTs) on long-term charter, extending its partnership with AET in the North Sea shuttle sector. ADRs of Statoil climbed more than 1% intraday. The two twin skeg 125,000dwt tankers will be built by Samsung Heavy Industries for delivery in 2019, according to a statement. The value of the contract was not disclosed. The tankers will be contracted to Statoil for operations in the North Sea, Norwegian Sea and the southern Barents Sea as well as on the UK Continental Shelf. AET is a subsidiary of Malaysian energy shipping group, MISC Berhad.

Commodities

Crude was up 1.4%. United States Oil Fund ( USO ) was up 1.8%. Natural gas was up 0.9% while United States Natural Gas Fund (UNG) was up 0.8%.

Gold was up 0.5%. SPDR Gold Trust (GLD) was up 0.4%. Silver was 1.1% higher while iShares Silver Trust (SLV) was up 1%.

Health Care

Health care funds Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were firmer. Likewise, Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 1.6%.

TrovaGene (TROV) was up 18.3% after the company said it entered into an agreement with an undisclosed biopharmaceutical company to provide its Trovera urine circulating tumor DNA (ctDNA) biomarker tests and services. The Trovera urine and blood liquid biopsy tests will be used to assess and monitor mutation status in clinical trials of oncology therapeutics in development. This agreement follows a separate, recent announcement of TrovaGene's collaboration with AstraZeneca (AZN).

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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