Healthcare ETFs Dip Amid Broad Market Rally

Healthcare-focused ETFs dropped amid a broad market rally in which the Dow industrials surged, thanks to drop in DexCom Inc. shares. 

Langar Global HealthTech ETF (LGHT) fell 2.4%, First Trust Nasdaq Lux Digital Health Solutions ETF (EKG) dropped 2% and Global X Internet Of Things ETF (SNSR) declined 1.1%. The funds allocate anywhere from 5.6% to 9.7% to DexCom, which makes equipment to manage diabetes and cratered 41% after reporting disappointing second-quarter results and guidance.

The Invesco Dow Jones Industrial Average Dividend ETF (DJD) rose 3%, boosted by its 10.2% holding in 3M. The conglomerate’s stock surged nearly 22% to a 52-week high following stronger-than-expected quarterly results from the maker of office supplies and adhesives. 

In media, the Invesco Dynamic Leisure And Entertainment ETF (PEJ) added 0.7%, partly due to its 5.3% holding in Warner Bros. Discovery, while The Invesco S&P 500 Equal Weight Communication Services ETF (RSPC), which holds 4.9% of the stock, rose 1.6%.

The media company sued the NBA on Friday in an attempt to maintain broadcast rights for a package of live games. The media company is seeking to prevent the NBA from awarding these rights to Amazon, whose game package Warner Bros. Discovery had tried to match. 

Stock and bond ETFs jumped Friday as traders aimed to end a turbulent week on a positive note amid fresh U.S. inflation data. 

Major index-tracking ETFs showed significant gains across the board. The SPDR Dow Jones Industrial Average ETF Trust (DIA) surged 2%, reflecting a more than 800-point increase in the Dow Jones Industrial Average. 

Both the SPDR S&P 500 ETF Trust (SPY) and the Nasdaq-tracking Invesco QQQ Trust (QQQ) are up more than 1.5%, indicating that gains are stretching beyond the tech sector, which has been at the forefront of gains this year.

The Vanguard Communication Services ETF (VOX) climbed 2% following news that Disney and Marvel’s “Deadpool & Wolverine” broke the Thursday preview record for an R-rated movie. The comic-book film sold an estimated $38.5 million worth of tickets from preview screenings Thursday, Disney said Friday.

The Communication Services Select Sector SPDR Fund (XLC), which holds 4% of Disney, is also up 2.2%.  

The Core PCE price index, the Fed's preferred inflation gauge that strips out food and energy prices, rose 0.2% in June, meeting expectations and up slightly from May's 0.1% gain, the U.S. Bureau of Economic Analysis reported on Friday.

Year-over-year the PCE increased 2.5% vs. 2.5% expected and 2.6% in May.

Meeting expectations on the inflation front encouraged investors hoping for a soft landing as the iShares 20+ Year Treasury Bond ETF (TLT) rose 0.7% and the iShares Russell 2000 ETF (IWM) continued its recent momentum jumping 2% in morning trading.