The Internet Infrastructure HOLDRs ( IIH) exchange-traded fund was Friday's biggest winner, jumping 9% as tech stocks rebounded from the previous session's selloff thanks to M&A news. Among its holdings, BEA Systems ( BEAS) surged 33% after software giant Oracle ( ORCL) made an unsolicited bid for the company. The Internet Infrastructure HOLDRs was recently up 48 cents to $5.76. Among other related ETFs benefiting from the BEA news, the First Trust Dow Jones Internet Index ( FDN) added 58 cents, or 2.1%, to $27.71. The iShares S&P GSTI Software ( IGV) ETF was up $1.07, or 2.1%, to $53. A sharp decline in Baidu.com ( BIDU) on Thursday sank Asia indices overnight, but the stock was up 1.2% during the current session and supported advances in related ETFs. The iShares FTSE/Xinhua China 25 Index ( FXI) ETF was rising $6.10, or 3.2%, to $198.60. The PowerShares Golden Dragon Halter USX China ( PGJ) ETF was gaining $1.02, or 3%, to $35.34. The SPDR S&P China ( GXC) ETF was up $2.83, or 2.8%, to $102.48. On the other hand, housing-related ETFs sank after Wachovia lowered 2007 and 2008 earnings estimates for 13 homebuilders. Among those cut were Centex ( CTX), Beazer Homes ( BZH), Lennar ( LEN), Toll Brothers ( TOL), Hovnanian ( HOV) and D.R. Horton ( DHI). The iShares Dow Jones U.S. Home Construction ( ITB) ETF was down 67 cents, or 3%, to $21.65. The SPDR S&P Homebuilders ( XHB) ETF was losing 45 cents, or 1.9%, to $22.85.
Bundled securities tracking the retail sector were also lower despite a strong government report on retail sales during September. The Commerce Department said that retail sales rose 0.6% last month, tripling expectations. Excluding autos, retail sales increased 0.4%, also topping expectations. However, the SPDR S&P Retail ( XRT) ETF was shedding 38 cents, or 0.9%, to $40.19. Among its holdings, Tiffany ( TIF), Costco Wholesale ( COST) and PetSmart ( PETM) were lower by 1.7% or more.