Active broad-market exchange-traded funds in Thursday's regular
SPDR S&P 500 (
iShares MSCI Emerging Markets Index (
Select Financial Sector SPDRs (
Market Vectors Gold Miners (
iShares MSCI Japan ETF (
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM and IVV
were firmer, with some touching record or multi-year highs.
Likewise, actively traded PowerShares QQQ (QQQ) was up 0.55%, with
a new 13-year high.
U.S. stocks were holding on to their gains at session's half and
set to end the shortened week with a gain; the Dow Jones Industrial
Average surpassed 17,000 for the first time and the S&P 500 hit
an intraday record. Market sentiment brightened as upbeat jobs data
for June outshone other mixed economic data released Thursday. The
U.S. economy generated 288,000 jobs - the largest gain since 1999;
unemployment rate, meanwhile, fell to 6.1% from 6.3% - the lowest
rate since September 2008. Meanwhile, weekly jobless claims rose to
315,000, which was more than expected, and continuing claims
increased by 11,000 to a seasonally adjusted 2.58 million in the
week. Finally, the Institute for Supply Management services index
dipped slipped down to 56% in June from 56.3% in May - a slight
slowdown, but at above 50%, it still indicated expansion.
Power Play: Financial
Select Financial Sector SPDRs (
) was up 0.74%, hitting a new five-year high. Direxion Daily
Financial Bull 3X shares (FAS) was up 1.64% to an all-time high.
Its bearish counterpart, FAZ, was down 1.66% to a record low.
Among sector news, Sun Bancorp (SNBC) shares climbed 5.62% to a
three-year high after the bank-holding company unveiled a series of
changes it said were designed to improve performance in its credit,
operational and profitability metrics, including the formal hiring
of Thomas M. O'Brien as president and CEO, the sale of some
branches and the exit of several lines of business, the reduction
of 38% of its workforce, and a one-for-five reverse-stock
The company will cease the operations of Sun Home Loans, the
bank's retail-mortgage banking platform. Sun Home Loans will stop
accepting new applications effective immediately. All current
commitments for approved loans will be honored and funded according
to their terms. The company also will exit the Healthcare and the
Asset-Based Lending markets it entered in 2009 and close its
syndicated lending desk, and expects those moves to result in
annual cost savings of approximately $1.4 million.
The moves are expected to result in a cut of 38% of the
company's work force, affecting 242 full-time employees after
completion of the restructuring plan, which is expected to generate
an annual cost savings of approximately $16.8 million.
Winners and Losers
Technology Select Sector SPDR ETF (XLK), 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) climbed higher, and hit or were near record and multi-year
highs. SPDR S&P International Technology Sector ETF (IPK) was
flat, but earlier hit a record high as well.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and
Semiconductor Sector Index Fund (SOXX) were firmer and set new
In corporate news, Synnex (SNX) was down 5.82% after it reported
Q2 revenue of $3.45 billion, well ahead of the analyst consensus of
$3.17 billion on Capital IQ. Earnings were $1.52, vs. expectations
of $1.37 per share. For Q3, the company expects revenue in the
range of $3.3 to $3.4 billion and EPS of $1.45 to $1.50, vs. the
Street consensus of $3.28 billion in revenue and earnings of $1.53
Dow Jones U.S. Energy Fund (IYE) was up 0.21% while Energy
Select Sector SPDR (XLE) was up 0.15%.
In sector news, Golar LNG (GLNG) was up 2.75%, hitting a record
high after it has been upgraded to a hold rating from a strong sell
by analysts at Nordea Equity Research. The firm more than doubled
its price target on the stock to $63 from $31 a share.
The owner and operator of liquefied natural gas carriers also
said late Wednesday that it executed and made effective key
agreements for conversion of the 125,000 m3 LNG carrier Hilli to a
floating liquefaction vessel. The primary contract for the FLNGV
was entered into with Singapore's Keppel Shipyard Limited. Keppel
has simultaneously entered into a sub-contract with global
engineering, procurement and construction company Black &
Veatch who will provide its licensed PRICO(R) technology, perform
detailed engineering and process design, specify and procure
topside equipment, and provide commissioning support for the FLNGV
topsides and liquefaction process.
The FLNGV conversion contract is a key step towards full
implementation of Golar's floating LNG production strategy.
Crude was down 0.71%; United States Oil Fund (USO) was down
0.42%. Natural gas was up 0.14% and United States Natural Gas Fund
(UNG) was up 0.08%.
Gold was down 0.92% and silver was down 0.76%. Among rare metal
funds, SPDR Gold Trust (GLD) was down 0.57% and iShares Silver
Trust (SLV) was down 0.09%.
Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US
Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were
in positive territory, near multi-year highs.
Among stocks, Rite Aid (RAD) was up 5% after the drugstore chain
reported a 3.9% increase in same-store sales for the four weeks
ended June 28 from the prior-year period. The company said its June
front-end same-store sales increased 0.9%. Pharmacy same-store
sales, which included a negative impact of about 169 basis points
from new generic introductions, increased 5.4%. The prescription
count at comparable stores increased 3.5% over the prior-year
period. Total drugstore sales for the four-week period increased
3.5% to $2 billion. Prescription sales accounted for 68.4% of
drugstore sales, and third-party prescription sales represented
97.5% of pharmacy sales.
Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH)
and Vanguard Health Care ETF (VHT) were higher, touching record
highs. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up
In corporate news, iKang Healthcare Group (KANG) was up 6.29%
and reached an all-time high after announcing late Wednesday that
it has completed its acquisition of Shanghai Huajian Clinic gaining
three medical centers in China providing healthcare services to the
mid-to-high end market in Shanghai. iKang first acquired a 33%
equity in Huajian in January 2014, which has been disclosed in
iKang's prospectus for its initial public offering, and
subsequently acquired the remaining 67% equity in Huajian.
Financial terms weren't disclosed.