Tech , Cyclical ETFs Slump
Tradable funds
focused on tech, biotech, and retail stocks headed lower
Thursday, as investors punished an earnings warning from The
Gap and ignored positive earnings from Applied Materials.
The Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating) fell 5.0%, the day’s biggest decline among the
funds.
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Among the HOLDR’s
Genentech
(
DNA |
Quote |
Chart |
News |
PowerRating), the largest holding in the basket, gave
up 12 7/16 to 164 7/16. Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating), the largest
biotech by market cap and sales, lost 1 to 67 15/16.
Sepracor
(
SEPR |
Quote |
Chart |
News |
PowerRating), which is engaged with Eli Lilly
(
ELI |
Quote |
Chart |
News |
PowerRating)
in developing Prozac, dropped 11 5/8 to 94 1/2. Chiron
(
CHIR |
Quote |
Chart |
News |
PowerRating)
lost 6 3/8 to 44 1/2.
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The
Cyclicals/Transportation SPDR
(
XLY |
Quote |
Chart |
News |
PowerRating) fell 2.8%, pressured
by further weakness in the retail sector
(
$RLX.X |
Quote |
Chart |
News |
PowerRating).
Wal-Mart Stores
(
WMT |
Quote |
Chart |
News |
PowerRating) followed through to the downside
on heavy volume. The Gap
(
GPS |
Quote |
Chart |
News |
PowerRating) sold off on another
earnings warning from the apparel retailer.
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A positive
overnight earnings report from Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating)
failed to help the semiconductors. The chip-gear maker
rallied at the open, then succumbed to sellers. The
Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating) slid 2.4%. For more on the
chip sector and Applied Materials, read my
The News column.
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The upside to the
U.S.-focused tradable funds was largely limited to the
defensives. The Consumer Staples
(
XLP |
Quote |
Chart |
News |
PowerRating) SPDR gained 1.7%.
The Pharmaceutical HOLDR
(
PPH |
Quote |
Chart |
News |
PowerRating) managed a weak 0.9%
bounce following Wednesday’s Lilly-inspired damage.
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