Active broad-market exchange-traded funds in Thursday’s regular session:
SPDR S&P 500 ( SPY ): +0.5%
iShares MSCI Emerging Index Fund ( EEM ): +0.2%
PowerShares QQQ Trust, Series 1 ( QQQ ): +0.8%
SPDR Select Sector Fund – Financial ( XLF ): -0.1%
iPath S&P 500 VIX Short Term Futures ETN ( VXX ): -1.2%
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM and IVV were firmer. Actively traded PowerShares QQQ ( QQQ ) was up 0.8%.
US stocks extended their gains into session’s half, as bullish Chinese manufacturing data coupled with upbeat US economic data overshadowed lingering geopolitical risks and the negative impact that Hurricane Harvey will likely have on U.S. economy in the fourth quarter.
China earlier reported above-consensus August Manufacturing PMI of 51.7, Chinese media saying that the country’s government still plans on restructuring state-owned enterprises in the steel sector.
Initial jobless claims and personal income and spending. First-time unemployment claims increased 1,000 to 236,000 but was slightly below 237,000 estimates. Personal income rose by an as-expected 0.4% in July while a 0.3% gain in spending was slightly below +0.4% estimates.
The Chicago purchasing manager’s index stayed unchanged at 58.9, but disappointed market players by not showing a more significant improvement from July’s 6.8 point drop.
Also, the pending home sales index fell by 0.8%, an unexpected decline compared to estimates for an increase in the index by 0.4%. This follows similar declines in July existing home sales and new home sales.
The fallout from the devastating Texas hurricane continues to reverberate through the energy complex with gas futures rising to a two year high with gains largely attributed to news that the Colonial pipeline, a main conduit for gas to the East coast, has been shut down as a result of the hurricane. Oil futures have recovered with West Texas intermediate close to 3% higher despite the release of 500,000 barrels from the U.S. strategic reserves.
Power Play: Health Care
Health care funds Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH), were higher. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 2.7%.
SteadyMed (STDY) was down 30.5% after it reported receipt of a Refusal to File letter from the U.S. Food and Drug Administration, relating to its new drug application for Trevyent and its delivery system to treat pulmonary arterial hypertension, or high blood pressure between the heart and the lungs. SteadyMed said the FDA determined the application, filed in June, is not sufficiently complete to permit a substantive review. SteadyMed added the FDA has requested further information on device specifications and performance testing and has requested design verification and validation testing on the final, to-be-marketed Trevyent product. The company said within the next 30 days it will request a Type A meeting with the FDA to gain further clarification on the additional information required for resubmission. SteadyMed said it believes the issues raised by the FDA can be addressed.
Winners and Losers
Select Financial Sector SPDRs ( XLF ) was down 0.1%. Direxion Daily Financial Bull 3X shares (FAS) was up 0.2% and its bearish counterpart, FAZ, was down 0.3%.
Wells Fargo & Company (WFC) was down 0.8% after it said an expanded review of retail banking accounts found 3.5 million “potentially unauthorized accounts” that were opened between January 2009 and September 2016 compared to the initial finding of 2.1 million accounts for the period between May 2011 through mid-2015. Wells Fargo said that some 190,000 accounts incurred fees and charges, up from 130,000 previously identified and the bank will provide a total of $2.8 million in additional refunds and credits on top of the $3.3 million previously refunded as a result of the original account review.
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 flat.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.5% while Semiconductor Sector Index Fund (SOXX) was up 0.9%,
Ciena (CIEN) was down nearly 8% after it reported fiscal Q3 non-GAAP EPS of $0.51, up from $0.42 for the year-ago quarter and beating the $0.49 Capital IQ estimate. Revenue for the quarter, which ended July 31, was $728.7 million as compared to $670.6 million last year. This was ahead of the Capital IQ view for revenue of $726.8 million. The company is guiding for fiscal Q4 revenue of $720 million to $750 million. The Street is at $770.3 million.
Dow Jones U.S. Energy Fund (IYE) was up 0.8% and Energy Select Sector SPDR (XLE) was up 0.7%.
Algonquin Power & Utilities (AQN) was up 0.52% after it said it has agreed to acquire Enbridge’s (ENB) St. Lawrence Gas Company, a a regulated natural gas distribution utility in northern New York State, for $70 million.
Crude was up 2.9%. United States Oil Fund (USO) was up 2.7%. Natural gas was up 3.2% while United States Natural Gas Fund (UNG) was up 3.1%. Gasoline rose 11.1% and United States Gasoline Fund (UGA) was up 6.9%.
Gold was up 0.4%. SPDR Gold Trust (GLD) was up 0.7%. Silver was up 0.2%, while iShares Silver Trust (SLV) was up 0.4%.
Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were higher.
Consumer Discretionary Select Sector SPDR (XLY) and retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH), meanwhile, were also in the green.
Shoe Carnival (SCVL) was up some 23% after it reported fiscal Q2 net income of $0.24 a share, ahead of the consensus on Capital IQ for $0.20 and topping the year earlier $0.22. Sales were 1.4% higher at $235.1 million, also exceeding analysts’ expectations, which were for $232.3 million. Comparable store sales increased 0.4%. The company expects fiscal 2017 net sales to be in the range of $1.01 billion to $1.02 billion, with comparable store sales flat to down low single digits. EPS are expected between $1.35 and $1.45. The Street’s view is for $1.39 in earnings and sales of $1.01 billion.
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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