Mid-Day ETF Update: ETFs, Stocks Mixed as Impact of Harvey Overshadows Economic Data

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

VanEck Vectors Gold Miners ETF ( GDX ): +2.7%

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): +1%

SPDR Select Sector Fund – Financial ( XLF ): -0.8%

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

United States Oil Fund ( USO ): -3.2%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were lower. Actively traded PowerShares QQQ (QQQ) was up 0.1%.

U.S. stocks were mixed at mid-day as investors mulled the impact from Hurricane Harvey on Wall Street. Home improvement stocks saw gains while those in the insurance sector declined.

Energy futures were also mixed, with gas futures trading considerably higher, but West Texas Intermediate crude oil prices down more than 3%. With Houston-area refiners shut down, as much as 2 million barrels per day is coming off line. This is expected to dramatically impact the demand for unrefined crude.

The fallout from Harvey overshadowed Monday’s economic data which included a wider-than-expected goods trade deficit of $65.1 billion, and unexpected increase in the Dallas Fed manufacturing index to 17.0 from July’s 16.8.

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 1.8%.

Second Sight Medical Products (EYES) was up 11% after the manufacturer of implantable visual prosthetics said it has received conditional approval from the U.S. Food and Drug Administration (FDA) to begin its Orion Cortical Visual Prosthesis System (Orion) feasibility clinical study. The conditional approval allows two U.S. sites to enroll up to five patients. The FDA has also requested the company conduct additional device testing and address outstanding questions. Second Sight has 45 days to respond to FDA’s requests.

Winners and Losers

Financial

Select Financial Sector SPDRs ( XLF ) was down 0.7%. Direxion Daily Financial Bull 3X shares (FAS) was down 1.7% and its bearish counterpart, FAZ, was up 1.8%.

Payment Data Systems (PYDS) was down 0.2%, having earlier traded at a session high of $1.47 a share, after the electronic payments processor said it will close on its purchase of privately held Singular Payments LLC on Sept. 1.

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 flat.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 0.2% while Semiconductor Sector Index Fund (SOXX) was down 0.1%,

Fitbit (FIT) was up 5.7% after t said it is launching its first smartwatch in October, called Fitbit Iconic, which will also offer payment services to the wearers wherever contactless payments are accepted. Over the coming months users will be able to add eligible American Express, Mastercard (MA) and Visa (V) credit and debit cards fro issuing banks, including Banco Santander, Bank of America, Capital One, HSBC in over 10 markets worldwide, Fitbit said on Monday. The device will process payments without the need for a smartphone.

Energy

Dow Jones U.S. Energy Fund (IYE) was down 0.9% and Energy Select Sector SPDR (XLE) was down 0.9%.

Denbury Resources (DNR) was down 8.4% after it has temporarily halted operations at its Houston area fields on Sunday due to conditions associated with tropical storm Harvey. The impacted fields include Hastings, Oyster Bayou, Conroe, Thompson, Webster and Manvel, and represent net production of approximately 16,000 barrels of oil equivalent per day.

Commodities

Crude was down 3.3%. United States Oil Fund ( USO ) was up 3.1%. Natural gas was up 0.9% while United States Natural Gas Fund (UNG) was up 0.4%.

Unleaded gasoline rose 2.2% and United States Gasoline Fund (UGA) was up 1.8%.

Gold was up 1.2%. SPDR Gold Trust (GLD) was up 1.3%. Silver was up 2.1%, while iShares Silver Trust (SLV) was up 2.1%.

Consumer

Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were weaker.

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 lower.

Susquehanna has downgraded Genesco (GCO) to neutral from a positive rating, with an average price target of $45.


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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