Active broad-market exchange-traded funds in Monday's regular session:
iShares MSCI Emerging Index Fund ( EEM ): +1.5%
SPDR Select Sector Fund - Financial ( XLF ): +2.0%
SPDR S&P 500 ( SPY ): +0.7%
iPath S&P 500 VIX ST Futures ETN ( VXX ): -5%
ProShares Trust Ultra VIX Short Term Futures ETF ( UVXY ): -8%
Broad Market Indicators
Broad-market exchange-traded funds, including IWM and IVV were higher. Actively traded PowerShares QQQ (QQQ) was up 0.4%.
US stocks were higher at session's half, powered by bullish labor market data. Optimism from in Friday's payroll report carried over into Monday's trading, with the report showing a healthy gain in nonfarm payrolls without wage pressures -- a scenario that will likely keep the Fed to its current rate hike trajectory.
And after the US hit China with tariffs on $34 billion exported goods, the lack of response from Beijing cooled trade war worries.
Consumer Credit report for May will be out at 3 pm ET. Expectations are for a $12.4 billion increase after a $9.3 billion increase in April and $12.3 billion in March.
Additionally, investors are looking ahead to the start of the earnings season for Q2.
Power Play: Health Care
Health Care SPDR (XLV) was up 0.6% and other health care funds Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were higher. Meanwhile, Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was 0.1% higher.
Benitec Biopharma (BNTC) was more than 72% higher after the Australian specialty drugmaker announced an exclusive agreement granting global rights to its AXO-AAV-OPMD treatment for oculopharyngeal muscular dystrophy to Axovant Sciences (AXON). Under terms of the new partnership, Benitec will receive a $10 million upfront cash payment plus another $17.5 million after meeting four near-term manufacturing, regulatory, and clinical milestones. The companies will also collaborate on a total of five additional investigational gene therapy products for neurological disorders, with Axovant fully funding each research program.
Winners and Losers
The Select Financial Sector SPDRs ( XLF ) was up 1.9%. Direxion Daily Financial Bull 3X shares (FAS) was up 3.8% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was down 3.7%.
MVC Capital (MVC) rose marginally after it said that it has signed an agreement to sell its stake in Centile Holdings, developer of unified communications and fixed-mobile convergence platforms in Europe, to VOIP Holdings. The company expects gross proceeds of $7.5 million, which will be used to "redeploy capital into yielding investments." Closing of the deal is slated for the end of July.
Dow Jones U.S. Energy Fund (IYE) was up 1.4% and Energy Select Sector SPDR (XLE) was up 1.4%.
BP (BP) was more than 1% higher after analysts at RBC Capital Markets added the energy major to their large-cap best ideas list and also raised the company's stock to a top pick, explaining BP boasts one of the strongest growth profiles among its peers through 2020. "In our view, the visibility around BP's volume growth to the early 2020s should reassure investors that BP does not need to raise capex materially in order to rejuvenate the upstream hopper," the RBC analysts wrote in a new research note to clients. BP shares have climbed almost 34% over the past 12 months and reached their best share price in nearly four years during May.
Technology Select Sector SPDR ETF (XLK) was up 0.3% 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 in the green.
Meanwhile, among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.6% and Semiconductor Sector Index Fund (SOXX) was up 0.8%.
Nano Dimension (NNDM) rallied more than 15% after the three-dimensional printed circuit board manufacturer said it has entered the Chinese market after signing an distribution agreement with Aurora Group. Under terms of the deal, Aurora Group will market and sell Nano Dimension's DragonFly 2020 Pro 3D printer for electronics to Chinese customers.
Crude was up 0.5%. United States Oil Fund (USO) was down 0.2%. Natural gas was down 1.2% while United States Natural Gas Fund (UNG) was down 1.2%.
Gold was up 0.4%. SPDR Gold Trust (GLD) was up 0.4%. Silver was up 0.5%, while iShares Silver Trust (SLV) was down 0.2%.
Consumer Staples Select Sector SPDR (XLP) was down 0.3% and Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones U.S. Consumer Goods (IYK) were higher.
Consumer Discretionary Select Sector SPDR (XLY) was up 0.9% while retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were firmer.
Starbucks (SBUX) climbed nearly 2% following reports outgoing executive board chairman Howard Schultz has tried to calm investor worries by saying he believes a recent slowdown at the company's Chinese locations was likely temporary and hinted at a potential partnership between the coffeehouse chain and Jack Ma, the billionaire founder of Chinese e-commerce giant Alibaba Group (BABA), to help boost online coffee sales inside the sprawling Asian country.
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