SIMS Surges, USO Rises on Israel Tensions; EDOC Falls

ETFs saw mixed performance on Thursday with energy-related funds gaining ground while healthcare and retail-focused ETFs faced headwinds.

The SPDR S&P Kensho Intelligent Structures ETF (SIMS) rose 1.9% after EVgo shares soared over 60%. The electric vehicle charger company received a more than $1 billion conditional loan from the Department of Energy, and JPMorgan upgraded EVgo to overweight.

The United States Oil Fund LP (USO) climbed over 4% as oil prices surged. The market reacted to speculation about potential Israeli strikes on Iran’s oil infrastructure in retaliation for recent missile attacks, following comments from President Joe Biden on the situation.

On the downside, the Global X Telemedicine & Digital Health ETF (EDOC) fell 3.3% after Hims & Hers Health plunged 10%. The U.S. Food and Drug Administration announced the resolution of shortages for popular weight loss drugs, affecting Hims & Hers Health, which had developed compound versions to capitalize on the shortage.

Retail-focused ETFs also struggled, with the Fidelity MSCI Consumer Staples Index ETF (FSTA) down nearly 1% and VanEck Retail ETF (RTH) dropping 0.7%. Ongoing port strikes on the East and Gulf Coast raised concerns about potential impacts on retailer margins, inventory, and sales. 

Markets were weighed down Thursday by a range of investor concerns from rising jobless claims to the conflict in the Middle East to the fallout of the workers strike at ports along the East coast. 

The SPDR Dow Jones Industrial Average ETF Trust (DIA) moved off of its earlier lows and had dipped 0.2% shortly after noon New York time. 

SPY, the SPDR S&P 500 ETF Trust was little changed, also moving up from earlier lows. Tech, as measured by the Invesco QQQ Trust (QQQ), did better, adding 0.2% as it climbed and slid throughout the morning. 

Jobless claims ticked upward slightly, the Labor Department reported this morning, just above estimates. At 225,000, the numbers were muted amid companies holding off on hiring more workers. The figures implied a labor environment where no one is getting fired, but they aren't being hired either. The numbers come in just a day before the September jobs report on Friday, where investors will look for clues on the strength of the U.S. economy. 

Strikes Weigh on Shipping, Manufacturing ETFs

Port strikes also kept markets under pressure, keeping a lid on the transportation and autos sector that relies heavily on the ports to move goods. The strike of some 50,000 members of the International Longshoremen’s Association may cut U.S. economic output by billions of dollars.

Both General Motors and Ford fell on the news, dragging down manufacturing and auto ETFs. BOAT, the SonicShares Global Shipping ETF fell roughly 0.1% while FTXR, the First Trust Nasdaq Transportation ETF sank more than 0.8%. 

MADE, the iShares U.S. Manufacturing ETF fell by more than a third of a percentage point. General Motors and Ford are in the top 10 holdings in the fund.