Stock exchange traded funds such as the SPDR S&P 500 ETF (NYSEArca: SPY) were lower Thursday as an analyst downgrade of Intel (NasdaqGS: INTC) weighed. However, LinkedIn (NYSE: LNKD) shares nearly doubled in their first day of trading.
Intel shares were off 2% Thursday following a downgrade to sell at Goldman Sachs. The weakness was set to weigh on ETFs investing in semiconductor stocks that have performed well lately. Intel represents 19.3% of Semiconductor HOLDRS (AMEX: SMH), an ETF with $565 million in assets. [Intel Downgrade to Weigh on Semiconductor ETFs]
Gold ETFs were flat Thursday. George Soros has reportedly sold nearly $800 million worth of shares in gold exchange traded funds, while fellow hedge fund manager John Paulson kept his big stake in gold ETFs unchanged in the first quarter, according to regulatory filings. [Hedge Fund Managers Mixed on Gold ETFs]
As the earnings season wraps up, investors are turning their attention to economic data, and especially the job market. In order for the rally to sustain, employment data must show a turnaround. [Stock ETF Investors Look for Improvement in Jobless Claims]
Financial ETFs rose Thursday as strength in Citigroup (NYSE: C) and Bank of America (NYSE: BAC) helped lift the unloved sector. Shares of Citi, B. of A. and Financial Select Sector SPDR Fund (NYSEArca: XLF) were all fractionally higher in premarket trading. Citi shares are down about 10% since April 20, and are lagging the banking sector as investors focus on the company’s 10 for 1 reverse split. [Financial ETFs Higher on Citigroup, Bank of America]
Oil ETFs have been hit by margin hikes and a rally in the dollar, but they’ve encountered buying interest this week at a key technical level. The $1.7 billion U.S. Oil Fund (NYSEArca: USO) is down nearly 8% over the past month. However, the ETF bounced this week at its 200-day moving average. Yet “considerable technical weakness remains,” says David Chojnacki, a market technician at Street One Financial, as the oil ETF’s 20-day moving average crosses below the 50-day. [Oil ETFs Bounce at 200-Day Average]
Gregory A. Clay contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.