Mid-Day ETF Update: ETFs Firmer, Stocks Hit 2019-High As JP Morgan Results, Anadarko Petroleum-Chevron Deal Lift Sentiment

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

SPDR Select Sector Fund - Financial (XLF): +1.7%

SPDR S&P 500 (SPY): +0.6%

SPDR S&P Oil & Gas Explor & Product (XOP): +3.6%

iShares MSCI Emerging Index Fund (EEM): +0.6%

iShares Inc iShares MSCI Brazil ETF (EWZ): -0.3%

Broad Market Indicators

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

US stocks rose to their highest level this year after JPMorgan Chase & Co. (JPM) kicked off the first-quarter earnings season on a strong note while Chevron Corp. (CVX) agreed to pay a 39% premium to acquire Anadarko Petroleum (APC) in a $33 billion deal, unleashing a risk-on appetite that pushed bonds to a three-week low.

Shares of JPMorgan surged some 5% after the lender reported better-than-expected first-quarter results, with CEO Jamie Dimon saying that the US economy is growing even with some global uncertainty.

In economic data news, import and export prices both came in ahead of analysts' expectations in March, with import costs pushed higher by fuel prices and export rates posting a year-on-year advance, according to the Bureau of Labor Statistics. Prices for US imports rose 0.6% in March, slower than the revised 1% increase in February but ahead of the consensus on Econoday for 0.4%. Export rates accelerated 0.7%, in line with the prior month's rate and topping views for 0.3%.

And, the University of Michigan Index of Consumer Sentiment moved down to 96.9 in April compared with 98.4 in March and 98.8 one year ago, data published on Friday showed. Analysts had projected 98, according to a poll by Bloomberg. While a slight decline, the level of the sentiment index during the past 30 months was higher than any other time since 1997 to 2000, the final phase of the record 10-year expansion, according to the university.

Power Play: Consumer

Consumer Staples Select Sector SPDR (XLP) was up 0.1% while iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were in the green.

Consumer Discretionary Select Sector SPDR (XLY) was up 0.7% while SPDR S&P Retail (XRT) , PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were weaker.

Walt Disney (DIS) rose some 10% to a record high after it unveiled its streaming service, Disney+, on Thursday, but said the service isn't likely to turn a profit for at least five years. The service will be priced at $7.99 per month/$69.99 per year. Two-thirds of the sales of the service are expected to come from overseas markets. Disney+ will launch in the US, western Europe and Asia on Nov 19. The company plans to invest $1 billion into streaming programming over the next year.

Winners and Losers


Select Financial Sector SPDRs (XLF) was up 1.7%. Direxion Daily Financial Bull 3X shares (FAS) was up 3.6%; Direxion Daily Financial Bear 3X Shares (FAZ) was down 3.5%.

PNC Financial Services (PNC) rose nearly 3% even as it reported first-quarter earnings that missed expectations as the regional bank's net income and revenue fell from the previous year. The Pittsburgh-based lender said total revenue for the quarter ended March 31 was $4.27 billion, up from $4.11 billion from the year before, and slightly above Capital IQ's forecast of $4.26 billion. Net income rose to $2.61 per diluted common share, up from $2.43 from the previous-year quarter, a penny below Capital IQ's view of $2.62. The provision for credit losses rose to $189 million from $92 million the year before. Revenue in retail banking rose to $264 million in the first quarter from $249 million the year before while corporate and institutional banking revenue slipped to $552 million from $563 million. First-quarter net interest income rose to $2.48 billion, up from $2.36 billion the year before while non-interest income rose to $1.81 billion from $1.75 billion.


Technology Select Sector SPDR ETF (XLK) was up 0.4%; 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.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 1.3% and Semiconductor Sector Index Fund (SOXX) was up 1.3%.

Bridgeline Digital (BLIN) shares were 16% lower after the software company filed late Thursday a shelf registration statement for secondary offering of 383.5 million shares of common stock by selling stockholders for a maximum aggregate offering price of $72.9 million. The company will not receive any proceeds from the secondary offering.


Dow Jones U.S. Energy Fund (IYE) was up 0.6% and Energy Select Sector SPDR (XLE) was up 0.7%.

Exxon Mobil Corp. (XOM) voiced concern over a 1.5 million barrels of crude supplied in November by the US Energy Department from the nation's Strategic Petroleum Reserves that it said contained 5,000 parts per million of hydrogen sulfide, Bloomberg reported. Citing emails from Exxon's lead trader Mattias Bruno sent to the government and obtained under the Freedom of Information Act, the news report said that the level of H2S in the cargo bought in August stands at 250 times more than government safety standards. XOM shares were down some 1%.


Crude was up 0.9%; United States Oil Fund (USO) was up 0.7%. Natural gas was down 0.3% and United States Natural Gas Fund (UNG) was down 0.6%.

Gold was up 0.1%, and SPDR Gold Trust (GLD) was down 1.1%. Silver was up 0.6% and iShares Silver Trust (SLV) was up 0.4%.

Health Care

Health Care SPDR (XLV) was down 0.5% and other funds iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were lower. Meanwhile, Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was down 0.7%.

TRACON Pharmaceuticals (TCON) fell more than 51% after it said it terminated its phase 3 TAPPAS trial evaluating TRC105 in combination with Votrient (pazopanib) in patients with advanced or metastatic angiosarcoma due to futility, based on Independent Data Monitoring Committee recommendations. Data from this study will be analyzed and submitted for presentation at an upcoming scientific congress.

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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