Exchange-traded funds tracking semiconductors were among the worst performers Wednesday, after a bearish analyst report on expected chip prices and Micron Technology's (MU) disappointing quarter.
Micron was sliding nearly 9% after swinging to a fiscal fourth-quarter loss, while Merrill Lynch initiated coverage of Intel (INTC), Advanced Micro Devices (AMD) and Nvidia (NVDA) with underweight ratings.
The Ultra Semiconductor ProShares (USD) was shedding $3.71, or 4.1%, to $87.58. The Semiconductor HOLDRs (SMH) was losing 89 cents, or 2.23, to $38.07. The iShares S&P GSTI Semiconductor (IGW) was off $1.49, or 2.2%, to $67.53.
Funds tracking Chinese markets also were among the losers. Hong Kong's Hang Seng index lost 719.81 points overnight.The iShares FTSE/Xinhua China 25 Index (FXI) was losing $11.09, or 5.9%, to $178.40. The SPDR S&P China (GXC) was shedding $5.67, or 5.8%, to $92.94. The PowerShares Golden Dragon Halter USX China (PGJ) was off $1.61, or 4.6%, to $33.21. Funds tracking homebuilders were among the session's few winners, as several holdings continued their run-up a second day. Beazer Homes (BZH), Standard Pacific (SPF) and Brookfield Homes (BHS) were all up more than 3.5%. The iShares Dow Jones US Home Construction (ITB) was gaining 60 cents, or 2.7%, to $22.46. The iShares FTSE NAREIT Residential (REZ) was adding 79 cents, or 1.7%, to $48.70. Biotech- and pharmaceutical-related funds also were among the winners. Arena Pharmaceuticals (ARNA), Imclone Systems (IMCL) and Genzyme (GENZ) were all adding more than 3%. The SPDR S&P Biotech (XBI) was gaining $1.01, or 1.7%, to $59.56. The Ultra Health Care ProShares (RXL) was tacking on 75 cents, or 1%, to $74.70. The Pharmaceutical HOLDRs (PPH) was adding 74 cents, or 0.9%, to $81.82.