Mid-Day ETF Update: ETFs, U.S. Stocks Extend Losses as 10-Yr Treasury Yield Continues to Climb

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

SPDR S&P 500 ( SPY ): -0.3%

iShares MSCI Emerging Index Fund ( EEM ): -1.1%

VelocityShares Daily 2x VIX Short Term ETN ( TVIX ): +6.7%

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.3%

SPDR Select Sector Fund - Financial ( XLF ): -0.9%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were lower. Actively traded PowerShares QQQ ( QQQ ) was down 0.3%.

U.S. stocks were in negative territory at session's half, as Treasury yields continued to rise. Earnings results also remain in focus, with Texas Instruments (TXN) and Comcast (CMCSA) among gainers and Edwards Lifesciences (EW) and Twitter ( TWTR ) among losers.

Looking ahead, Facebook Inc. (FB), Qualcomm Inc.(QCOM) and Visa Inc. (V) are due to report in the after hours sessions.

Crude was also lower after the Energy Information Administration said inventory data showed a 2.2 million bbl rise in crude stocks. The Street had been expecting a 2.5 million bbl decrease, though the API reported a 1.1 million bbl build on Tuesday.

Power Play: Technology

Technology Select Sector SPDR ETF (XLK) was down 0.4% and other tech funds 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.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 0.1% and Semiconductor Sector Index Fund (SOXX) was down 0.3%.

Twitter (TWTR) fell more than 3% after the company reported Q1 adjusted EPS of $0.16, up from $0.11 a year ago, and above the $0.11 Street view, as compiled by Capital IQ. Twitter reported Q1 revenue of $665 million, up 21% from a year earlier and above the Street view of $607.6 million. In guidance, the company said it expects Q2 adjusted EBITDA to be between $245 million and $265 million.

Winners and Losers


The Select Financial Sector SPDRs ( XLF ) was down 0.9%. Direxion Daily Financial Bull 3X shares (FAS) was down 2.7% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was up 2.7%.

Norfolk Southern Corp. (NSC) rose some 5% after the firm reported Q1 EPS was $1.93, up from $1.48 per share a year earlier and above the GAAP consensus of $1.78 per share. Revenues rose to $2.72 billion from $2.58 billion, also topping the $2.68 billion mean estimate.


Dow Jones US Energy Fund (IYE) was up 0.1% and Energy Select Sector SPDR (XLE) was down 0.04%.


Select Sector SPDR-Industrial (XLI) fell 0.6% and other industrial funds Vanguard Industrials (VIS) and iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ), were in the red.

The Boeing Company (BA) rose nearly 2% after the company reported Q1 adjusted earnings of $3.64 per diluted share, up from $2.17 per share a year ago and above the $2.59 average estimate from analysts polled by Capital IQ. Revenue rose to $23.38 billion from $21.96 billion a year ago, beating the $22.24 billion consensus. Raising its full-year 2018 guidance in performance, the company said adjusted diluted EPS is expected between $14.30 and $14.50, which is above the Street's forecast of $14.09 and compares with a previous guidance of $13.80 to $14.00. Reaffirming its 2018 revenue forecast, the company said sales are expected to come in a range of $96.0 billion to $98.0 billion, straddling the average analyst estimate of $97.12 billion.


Crude was down 0.04%. United States Oil Fund (USO) was down 0.3%. Natural gas was down 0.7% while United States Natural Gas Fund (UNG) was down 0.5%.

Gold was down 0.8%. SPDR Gold Trust (GLD) was down 0.8%. Silver was down 1.1%, while iShares Silver Trust (SLV) was down 1.1%.


Consumer Staples Select Sector SPDR (XLP) was down 0.1% and other funds Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were weaker.

Consumer Discretionary Select Sector SPDR (XLY) was down 0.02% and retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were in negative territory.

Dr Pepper Snapple (DPS) rose marginally after the drinks maker posted Q1 earnings of $0.88 per diluted share, down from $0.96 a year ago. Analysts polled by Capital IQ expected earnings of $1.05 per diluted share. Net sales rose to $1.59 billion from $1.51 billion a year earlier in the March quarter. That was higher than the $1.57 billion average estimate in a Capital IQ poll.

Health Care

Health Care SPDR (XLV) was down 0.5% and other health care funds Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were lower. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was down 0.6%.

Boston Scientific (BSX) rose more than 2% after the company reported Q1 adjusted earnings of $0.33 per share, compared to $0.29 loss per share in the prior year period and higher than the $0.32 per share Street estimate provided by Capital IQ. Net sales were $2.38 billion, up from $2.16 billion reported for the same period last year and just higher than the $2.34 billion Street estimate. For 2018, the company now expects adjusted earnings to range from $1.37 to $1.41 per share and revenue of between $9.75 billion to $9.9 billion vs prior guidance of $1.35 to $1.39 earnings per share and revenue of $9.65 billion to $9.8 billion. The Street estimates is for EPS of $1.37 and $9.75 billion in revenue.

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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