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Mid-Day ETF Update: ETFs, Stocks Weaker as U.S. Trade Deficit Rises and Factory Orders Decline

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

SPDR S&P 500 ( SPY ): -0.58%

iShares MSCI Japan ( EWJ ): -2.92%

iShares MSCI Emerging Markets Index ( EEM ): -0.29%

iShares Russell 2000 Index ( IWM ): -0.59%

iPath S&P 500 VIX ST Futures ETN ( VXX ): +2.11%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV are weaker; likewise, actively traded PowerShares QQQ (QQQ) was down 0.75%.

U.S. stocks were also lower at the session's half, with the energy sector leading losses. Investors are seeing the declining energy prices as indicative of a slowing global economy. Economic data were also downbeat, weighing on market sentiment.

The U.S. trade deficit rose 7.6% in September to $43 billion as exports to Europe, China and Japan declined. Economists had expected the trade deficit to increase to $41.1 billion. Exports fell a seasonally adjusted 1.5% in September to $195.6 billion. This was the biggest decline in seven months.

Factory orders fell 0.6% in September, in line with forecasts. Meanwhile, orders for durable goods fell 1.1%, and orders for non-durable goods remained unchanged.

Power Play: Consumer

Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were in positive territory, reaching all time highs.

Red Robin Gourmet Burgers (RRGB) was up 10.88% after it reported Q3 earnings that beat Street estimates. The restaurant chain reported earnings of $0.50 per share on $267.4 million in revenue. The Street expected $0.34 per share in earnings, according to Capital IQ; revenue estimates were $267.6 million. In fiscal year 2014, Red Robin expects comparable restaurant revenue growth approaching 3.0%. The company plans to open 19 new Red Robin restaurants and three Red Robin Burger Works resulting in operating week growth of over 6.0%. Restaurants acquired in 2014 are expected to add revenues of $24 million in Q4 2014 and will reduce franchise royalties by approximately $0.7 million.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) was down 0.4%. Direxion Daily Financial Bull 3X shares (FAS) was up 1.04%; its bearish counterpart, FAZ, was up 0.9%.

Campus Crest Communities (CCG) climbed 15% after opening at a new record low of $6.00 a share on Tuesday following the company's mixed Q3 financial results. Q3 funds from operations were $9.7 million, or $0.15 per share, down from $13.1 million, or $0.20 per share a year earlier. Analysts were looking for FFO of $0.16 per share. Quarterly revenues rose to $28.3 million from $23.3 million, topping the consensus of $27.8 million.

The company also announced Ted Rollins resigned from his role as chairman and CEO effective immediately and that he will be succeeded by lead independent director Richard Kahlbaugh as executive chairman and interim CEO. The firm said CFO Donnie Bobbitt resigned and will be succeeded by Scott Rochon, who will also maintain his role as chief accounting officer.

Technology

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 lower. SPDR S&P International Technology S%ector ETF (IPK) was flat.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 0.64% while Semiconductor Sector Index Fund (SOXX) was down 0.76%.

EarthLink Holdings (ELNK) was up some 15% after the company posted late Monday financial results for Q3, or the quarter ended Sept. 30, 2014, that topped analysts' expectations. The provider of managed network, security and cloud solutions for multi-location businesses reported Q3 net loss of $2 million or $0.02 loss per share, compared with the prior-year period's $11.3 million or $0.11 loss per share. The Capital IQ analyst estimate is for $0.17 loss per share. Revenue was $297.7 million, down 3.5% from $308.6 million in the same quarter last year. Analysts were expecting revenue of $291.65 million.

Energy

Dow Jones U.S. Energy Fund (IYE) was down 2.28% and Energy Select Sector SPDR (XLE) was down 2.2%.

TransCanada (TRP) was down nearly 1% after it reported Q3 earnings in line with Street consensus. The company said comparable earnings for the quarter of C$0.63 per share were flat compared to Q3 2013 and in line with the Street estimate provided by Capital IQ. Revenue was C$2.45 billion, up from C$2.2 billion reported for the same period last year but fell short of the C$2.6 billion Street estimate.

Commodities

Crude was down 3.08%%; United States Oil Fund (USO) was down 2.55%. Natural gas was up 1.83% and United States Natural Gas Fund (UNG) was up 1.75%.

Gold was down 0.1%, while silver was down 1.06%. Among rare metal funds, SPDR Gold Trust (GLD) was up 0.12% and iShares Silver Trust (SLV) was down 0.84%.

Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were lower. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was down 1.27%.

Integra LifeSciences (IART) was down 7.85% after it reported late Monday Q3 earnings of $0.76, three cents ahead of the analyst consensus on Capital IQ. Revenue was $229.7 million, shy of the Street view of $232.8 million. For the full year 2014, the company expects revenue at the low end of its previous guidance of $920 to $940 million, vs. Street estimates of $930 million. Adjusted EPS outlook is maintained at $2.88 to $3.06 per share, vs. Street estimates of $2.95 per share.

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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