Chips Weaken Tech ETFs
Tech stocks sold off Tuesday on an
analyst’s bearish remarks on Intel, but the exchange-traded funds revealed
pockets of strength in tech. Retailers and airlines lifted the Cyclicals/Transportation
Spider.
The B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating)
closed up 3.2%, the largest gain among the U.S.-focused exchange-traded
funds.
Among the HOLDR’s component stocks,
VerticalNet
(
VERT |
Quote |
Chart |
News |
PowerRating) rose 2 27/64 to 57 3/16, Commerce One
(
CMRC |
Quote |
Chart |
News |
PowerRating) 3 1/4
to 69 1/4, PurchasePro.com
(
PPRO |
Quote |
Chart |
News |
PowerRating) 5 1/8 to 62 5/8, all on active trade.
Among the rate-sensitive tradable
funds, the Cyclicals/Transportation SPDR
(
XLY |
Quote |
Chart |
News |
PowerRating) jumped 1.1%. The
exchange-traded fund got a boost from both retailers
(
$RLX.X |
Quote |
Chart |
News |
PowerRating) and
airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating). Many of the advances were due to bottom-fishing. I’d
stay clear of this area if you’re a momentum trader. Among the retailers,
Winn-Dixie Stores
(
WIN |
Quote |
Chart |
News |
PowerRating) rose 15/16 to 14 13/16, Albertson’s
(
ABS |
Quote |
Chart |
News |
PowerRating) 1 1/8
to 22 3/8, Sears
(
S |
Quote |
Chart |
News |
PowerRating) 1 1/8 TO 33 3/16. Among the airlines, AMR Corporation
(
AMR |
Quote |
Chart |
News |
PowerRating),
holding company of American Airlines, added 1 1/8 to 33 13/16, Del Air Lines
(
DAL |
Quote |
Chart |
News |
PowerRating)
1 1/4 to 49 13/16.
On the downside, the Semiconductor
HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating) lost 2.8% as Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) led chip stocks lower. US
Bancorp/Piper Jaffray analyst Ashok Kumar cut his rating on the chip giant to a
“buy” from “strong buy”, citing unexpected weakness in
demand. Intel fell 4 11/16 to 69 1/4 on double normal volume.
Genomics stocks led the Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating) to a 4.1% decline, the day’s biggest loss among the ETFs. Among the
HOLDR’s components, Celera Genomics
(
CRA |
Quote |
Chart |
News |
PowerRating) weakened 7 7/8 to 104 1/2, Human
Genome Sciences
(
HGSI |
Quote |
Chart |
News |
PowerRating) 10 9/16 to 166 1/16, Chiron
(
CHIR |
Quote |
Chart |
News |
PowerRating) 3 3/16 to
51.
The weakness across technology stocks
caused the Nasdaq 100 Tracking Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) to slip 3.0%. The Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) fell 2.98%, the Internet Architecture HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating) 2.6%, the Dow
Jones Technology iShares
(
IYW |
Quote |
Chart |
News |
PowerRating) 2.4%, the Technology SPDR
(
XLK |
Quote |
Chart |
News |
PowerRating) 2.3%.
The Pharmaceutical HOLDR
(
PPH |
Quote |
Chart |
News |
PowerRating)
plumbed further depths, declining 2.3%.
