Active broad-market exchange-traded funds in Thursday's regular session:
SPDR S&P 500 ( SPY ): -0.3%
iShares MSCI Emerging Index Fund ( EEM ): -0.1%
ProShares UltraPro Short QQQ ( SQQQ ):+1.3%
iShares iBoxx $ High Yield Corporate Bond ETF ( HYG ): +0.1%
Alerian MLP ETF ( AMLP ): -1.5%
Broad Market Indicators
Broad-market exchange-traded funds, including IWM and IVV were higher. Actively traded PowerShares QQQ (QQQ) was down 0.5%.
US stocks were extending losses at session's half, after optimism following the US-China trade talks was replaced with global growth worries as well as lackluster holiday sales from major retailers.
While both US and China were hopeful that an agreement could be signed, with China saying the trade talks were extensive and could lay the foundation for a trade deal in the future, recent data from China have overshadowed this optimism. China said that consumer prices there rose 1.9% -- the slowest rate of increase in six months, while producer prices increased 0.9% -- the lowest rate in two years. Economists are now concerned there is a risk of deflation in the Chinese economy following these latest figures.
Back home, Macy's (M) shares were heading for their worst day ever, after reporting sales were up just 1.1% from the year-earlier period. The retailer said sales weakened in mid-December and didn't return to "expected patterns" until Christmas week. Target (TGT) , JCPenney (JCP) and Nordstrom (JWN) were also lower.
In economic data news, weekly unemployment claims declined by 17,000 to a seasonally adjusted 216,000, versus Econoday estimates for a decline of 7,000 to 224,000. Continuing claims slipped by 28,000 to 1.72 million.
Power Play: Consumer
Consumer Staples Select Sector SPDR (XLP) was up 0.5% and Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones U.S. Consumer Goods (IYK) were higher.
Consumer Discretionary Select Sector SPDR (XLY) was down 0.7% while retail funds SPDR S&P Retail (XRT) and Market Vectors Retail ETF (RTH) were lower.
Macy's (M) fell more than 18% after the retailer lowered its annual sales and earnings guidance for fiscal 2018 due to disappointing holiday sales. The company said it expects comparable sales for the year to be up 2.0%, down from is November guidance of 2.3% to 2.5%. It also lowered its guidance for diluted EPS to a range of $3.95 to $4.00 from $4.10 to $4.30.
Winners and Losers
The Select Financial Sector SPDRs (XLF) was down 0.5%. Direxion Daily Financial Bull 3X shares (FAS) was down 0.5% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was up 0.4%.
HSBC Holdings (HSBC) plans to pay $30 million to settle litigation initiated by investors who alleged that a number of large banks manipulated the prices of agency bonds from 2009 to 2015, Reuters reported. Deutsche Bank (DB) previously agreed to pay $48.5 million, while Bank of America (BAC) agreed to settle for $17 million, Reuters reported. The proposed settlement was disclosed in federal court in New York and still requires approval by US District Judge Edgardo Ramos, Reuters reported. HSBC ADRs were marginally lower while DB shares dropped 0.3%.
Technology Select Sector SPDR ETF (XLK) was down 0.3%, while tech funds iShares Dow Jones US Technology ETF (IYW) and iShares S&P North American Technology ETF (IGM) were in the red.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.6% and Semiconductor Sector Index Fund (SOXX) was up 0.2%.
Coupa Software (COUP) fell some 1.6% after it said it has expanded its relationship with Amazon Web Services (AMZN) to provide for greater IT spending visibility and efficiency within Coupa. Customers can now quickly configure their Amazon Web Services account to send their invoices into Coupa's platform for touchless digital processing. The company said that provides greater visibility of their invoices for Amazon Web Services and AWS Marketplace products.
Dow Jones US Energy Fund (IYE) was down 0.9% and Energy Select Sector SPDR (XLE) was down 0.7%.
Targa Resources (TRGP) unit Targa Resources Partners, and the partnership's unit Targa Resources Partners Finance said pre-market on Thursday that they will sell $750 million of senior unsecured notes due 2027. Targa Resources Partners said it will use the net proceeds for general partnership purposes, which may include partial or full redemption of its outstanding senior notes due 2019 or other senior notes, and repaying borrowings under its credit facilities or other indebtedness. The senior unsecured notes are expected to be eligible for trading by qualified institutional buyers. TRGP fell nearly 3%.
Crude was down 0.2%. United States Oil Fund (USO) was down 0.1%. Natural gas up 1.2% while United States Natural Gas Fund (UNG) was down 0.1%.
Gold was down 0.2%. SPDR Gold Trust (GLD) was down 0.5%. Silver was down 0.4%, while iShares Silver Trust (SLV) was down 1%.
Health Care SPDR (XLV) was down 0.4%, while other health care funds including Vanguard Health Care ETF (VHT) and iShares Dow Jones U.S. Healthcare (IYH) were higher. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.6%.
Rafael Pharmaceuticals (RFL) rose nearly 23% after it said that the European Medicines Agency has granted orphan drug designation to devimistat for the treatment of older patients with relapsed or refractory acute myeloid leukemia. The drug is currently being evaluated in seven trials, and has previously received an orphan drug designation in the United States for several cancer indications.
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