Active broad-market exchange-traded funds in Monday's regular
SPDR S&P 500 ETF Trust (
): +0.14%, but with new 52-week highs
iShares MSCI Emerging Markets Index (
iPath S&P 500 VIX Short Term Futures TM (
): -1.17%, earlier hit 52-week low
iShares Russell 2000 Index (
): +0.95%, with new 52-week highs
PowerShares QQQ Trust, Series 1 (
): -0.12%, near 52-week highs
Broad Market Indicators
Many broad-market exchange-traded funds, including SPY, IWM, IVV
and others are modestly weaker this morning. Actively traded
PowerShares QQQ (
) is off 0.3%.
U.S. stocks futures are pointing to a weaker open as investors
take a breather ahead of key data due out this week. At 10 a.m. New
York time the Institute for Supply Management's non-manufacturing
index will be released. Analysts expect it to fall to 54 from 54.4
U.S. economy GDP figures are also due out later this week.
Power Play: Financial
Financial stocks may be active today, with many showing
pre-market losses, especially European lenders, amid expectations
the European Central Bank may cut rates later this week. Deutsche
Bank (DB) is down 2.9% pre-market, while Royal Bank of Scotland
(RBS) is down 3%. Select Financial Sector SPDRs (XLF) slipped 0.1%,
near its 52-week high. Direxion Daily Financial Bull 3X shares
(FAS) was down 0.2%. Its bearish counterpart, FAZ, was up
Among financial stocks, Ritchie Bros. Auctioneers Incorporated
(RBA, RBA.TO) generated adjusted net earnings of $16.0 million, or
$0.15 per diluted share in the third quarter of 2013. This compares
to adjusted net earnings of $9.7 million, or $0.09 per diluted
share in the same quarter last year, representing a 65% increase.
It also easily beat forecasts for EPS of $0.09.
Winners and Losers
Technology Select Sector SPDR ETF (XLK), is quiet after a 0.3%
gain after hours. Other tech ETFs iShares Dow Jones US Technology
ETF (IYW), iShares S&P North American Technology ETF (IGM) and
iShares S&P North American Technology-Software Index (IGV) are
all flat after strong gains Monday.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD),
Semiconductor Sector Index Fund (SOXX) and SPDR S&P
International Technology Sector ETF (IPK) are also flat, but were
mostly weaker Monday.
Among stocks, Software company Open Text Corporation (OTEX,
OTC.TO) has entered into an agreement and plan of merger to acquire
GXS Group, Inc., a company engaged in business-to-business (B2B)
cloud integration, for $1.165 billion. Following the completion of
the transaction, GXS will become a wholly-owned subsidiary of
Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR
(XLE) both set new 52-week highs Monday and are quiet so far.
In sector news, Natural gas producer Encana Corp. (ECA, ECA.TO)
will cut its workforce by 20%, slash its dividend and sell shares
in a new royalty company in a bid to lift cash flow for the coming
years. Encana has maintained a $0.20 quarterly payout since 2009,
but today declared a $0.07 dividend. Encana will place 5 million
acres of land with gas and oil royalty production into a separate
company and plans an initial public offering in mid-2014. Encana's
stock is currently up more than 1% in U.S. pre-market trade, but
was down around 2% recently.
Crude was is down 0.22%; United States Oil Fund (USO) is edging
higher. Natural gas was down 1.4%, and United States Natural Gas
Fund (UNG) was down 1.6%.
Gold is leaning slightly lower, and SPDR Gold Trust (GLD) was up
0.3%. Silver was down 0.18%; iShares Silver Trust (SLV) is up
Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and
iShares Dow Jones US Healthcare (IYH) all set fresh new 52-week
highs Monday, but are quiet so far this morning. Biotech ETF
iShares NASDAQ Biotechnology Index (IBB) was weaker yesterday and
unchanged so far this morning.
Among stocks, Drug development company AEterna Zentaris Inc.
(AEZS, AEZS.TO) - which is slated to announce its third quarter
2013 financial and operating results after market close today - has
submitted a New Drug Application to the U.S. Food and Drug
Administration for its ghrelin agonist, macimorelin acetate.
Macimorelin acetate, a ghrelin agonist, is a novel orally-active
small molecule that stimulates the secretion of growth hormone.
Select Sector SPDR-Industrial (XLI) was up 0.14%, and posted a
new 52 week high. iShares Trust Dow Jones U.S. Industrial Sector
Index Fund (IYJ) and Vanguard Industrials (VIS) are unchanged, but
both hit new highs Monday.
Among stocks, Monsanto Company (MON) said it plans a $1 billion
public debt offering, with $400 million in bonds, $300 million in
5-year bonds and $300 million in 30-year bonds. Monsanto is a
provider of technology-based solutions and agricultural products
that help farm productivity and food quality.
Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer
Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) all
set fresh highs Monday, but are unchanged pre-bell.
Among stocks, Cereal maker Kellogg Company has been downgraded
by analysts at Deutsche Bank to a Hold rating from a Buy. The price
target was also reduced to $65 from $68 a share.
"While we believe Kellogg's four-year restructuring is logical
and necessary, limited 2014 visibility into sales/EBIT recovery and
heavy cash cost push us to a Hold opinion," said Deutsche Bank.
"Long term growth in global cereal and snacks are compelling but
it's clear greater investment is required." Shares of K are down
0.43% to $62.45 pre-bell.
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