Mid-Day EFT Update: Stocks Near Highs as Falling Dollar Lifts Commodities

01:28 PM Eastern Standard Time, 12/01/2009 (MidnightTrader) — Active-volume exchange-traded funds at mid-day in today’s regular session:

SPDR S&P 500 (SPY): +1.23%

iShares MSCI Emerging Markets Index (EEM): +2.76%

Select Financial Sector SPDRS (XLF): -0.20%

PowerShares QQQ (QQQQ): +1.46%

Direxion Daily Financial Bear 3X Shares (FAZ): +0.10%

iShares Russell 2000 (IWM): +1.38%

iShares MSCI Japan Index (EWJ): +3.24%

United States Natural Gas (UNG): +0.11%

SPDR Gold Shares (GLD): +1.57%

UltraShort S&P500 ProShares (SDS): -2.31%

Winners and Losers

Stocks hold gains at mid-day as concerns ease over a possible debt default in Dubai, lifting major market ETFs, including the SPY, DIA, UYG and others. The relief is outweighing mixed economic reports released at mid-morning.

The Institute for Supply Management said its index of manufacturing activity fell to 53.6 in November from 55.7 in October and below economists’ average forecast for 55, according to Thomson Reuters.

However, the National Association of Realtors said its seasonally adjusted index of sales agreements rose 3.7% in October from September. It was the strongest level since March 2006 and better than economists’ expectation for a drop.

The government also said construction spending rose 0.04% in October, the first increase in six months.

Ford (F) is up just under 1% after reporting that sales in November were essentially flat compared with last November, at 122,846 units. But sales of crossovers rose 26% and sales of cars rose 14%. Trucks and SUVs saw double-digit declines. Other automakers are reporting sales on Tuesday.

The PowerShares QQQ (QQQQ), which tracks the technology-studded Nasdaq Composite, is up 1.46%. Technology Select Sector SPDR (XLK) is 1.61%. ProShares Ultra Technology ETF (ROM) is up 3.36%, and iShares U.S. Technology (IYW)is up 1.59%. PowerShares Dynamic Software (PSJ) and iShares S&P North American Tech-Software (IGV) are up 1.53% and 1.8% respectively. iShares S&P North American Technology Semiconductor (IGW) is up more than 3% and Semiconductor HOLDRs (SMH) is up 2.71%.

Shoppers are spending less this holiday shopping season compared with last year, which doesn’t bode well for the economy recovery. Major retailers are slated to report final monthly results Thursday and retail stocks are up almost across the board in today’s trading. The SPDR S&P Retail (XRT) is 1.71%. The SPDR S&P International Consumer Staples Sector fund (IPS) is up 1.22%.

Chain-store sales for the week ended Nov. 28 rose 3.1% from the year-earlier period, according to a survey released Tuesday by the International Council of Shopping Centers and Goldman Sachs. On a week-over-week basis, sales fell 0.1%.

Commodities -

Gold is up $15 at $1,197 an ounce, with the December futures contract carving out fresh records. Gold futures gained 0.6% on Monday, padding one of the best months in 10 years. Crude extends opening gains, last up at $78.71 a barrel, as traders keep tabs on Iran tension.

United States Oil Fund (USO) is up 2.09%. United States Natural Gas (UNG) is up 0.43%. Energy Select Sector SPDR (XLE) is up 1.87%.

SPDR Gold Shares (GLD) is up 1.53% and among the most actively traded ETFs at mid-day. The Market Vectors Gold Miners fund (GDX) is up 5.5%. iShares Silver Trust (SLV) is up 3.36%.

ETF Power Play -

Major banking and brokerage shares are mixed. The Direxion Financial Bull 3X fund (FAS) is down fractionally, while its bearish counterpart, FAZ, is up 0.10%.

AIG is a leading gainer and helping the broader sector. AIG says it has closed two previously announced transactions with the Federal Reserve Bank of New York (FRBNY) that have reduced the debt AIG owes the FRBNY by $25 billion in exchange for the FRBNY’s acquisition of preferred equity interests in certain newly formed subsidiaries. As of today, including the $25 billion debt reduction, AIG’s outstanding principal balance under the FRBNY credit facility is approximately $17 billion, down from approximately $42 billion, excluding interest and fees. As a result of these transactions, the total amount available under the facility has been reduced from $60 billion to $35 billion.

Separately, a MarketWatch report says JP Morgan analysts cut their earnings projections for Wells Fargo (WFC), Regions Financial (RF) and US Bancorp (USB).