Active broad-market exchange-traded funds in Monday's regular
SPDR S&P 500 (
Market Vectors Gold Miners (
iShares Russell 2000 Index (
iShares FTSE/Xinhua China 25 Index (
iPath S&P 500 VIX ST Futures ETN (
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM and IVV,
were modestly higher at session's half, with actively traded
PowerShares QQQ (QQQ) also up 0.75% and reaching a new 13-year
U.S. stocks are also higher, with the Dow Jones Industrials
Average hitting another record high. With no economic data
scheduled for release and speeches from Federal Reserve officials,
investors have focused on earnings news, especially as the earnings
season is expected to pick up steam starting this week. Market
sentiment was buoyed by gains in banking stocks following
Citibank's (C) strong Q2 earnings. A number of as M&A activity
from the pharmaceutical sector is also providing some lift.
Power Play: Financial
Select Financial Sector SPDRs (XLF) was up 0.68%. Direxion Daily
Financial Bull 3X shares (FAS) was up 2.17% while its bearish
counterpart, FAZ, was up 2.31%.
Bank of America (BAC) was up 1.53% and JPMorgan Chase (JPM) was
up 1.38%, rallying after rival Citigroup (C) posted Q2 adjusted
earnings and revenue above analysts' expectations.
Citigroup delivered a beat on both its top and bottom lines for
Q2, giving the sector a fresh round of positive momentum even as
the big bank said it reached a $7 billion settlement to resolve
actual and potential civil claims by the U.S. Department of
Justice, several state attorneys general, and the Federal Deposit
Insurance Corp. relating to residential mortgage-backed securities
and collateralized debt obligations. C shares were up 3.21%.
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) were higher. SPDR S&P International Technology Sector ETF
(IPK) was up 0.25%.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and
Semiconductor Sector Index Fund (SOXX) were in the green.
Riverbed Technology (RVBD) was down 5.55% after it said it now
expects non-GAAP revenue for the quarter to be in the range of $264
million to $265 million, compared to the company's previous
guidance of $274 million to $280 million. Non-GAAP earnings are
expected to be at the low end of the company's previous guidance of
$0.26 to $0.28 per diluted share. Analysts polled by Capital IQ are
expecting EPS of $0.27 on revenue of $277.58 million.
Dow Jones U.S. Energy Fund (IYE) was up 1%; Energy Select Sector
SPDR (XLE) was up 0.9%.
Whiting Petroleum (WLL) over the weekend said it has signed a
definitive agreement to buy energy company Kodiak Oil & Gas
(KOG) in an all-stock transaction valued at $6 billion, including
Kodiak's net debt of $2.2 billion as of March 31. The merger is
expected to create a Bakken/Three Forks producer with over 107,000
barrels of oil equivalent per day of production in Q1 2014, 855,000
combined net acres and an inventory of 3,460 net future drilling
locations. As agreed, Kodiak shareholders will receive 0.177 of a
share of Whiting stock in exchange for each share of Kodiak common
stock they hold, representing consideration to each Kodiak
shareholder of $13.90 per share based on the closing price of
Whiting common stock on July 11. This represents a premium of
approximately 5.1% to the volume weighted average price of Kodiak
for the last 60 trading days. KOG was up 5.41% while WLL was up
7.49%, reaching an all-time high of $84.77.
Crude was up 0.2%; United States Oil Fund (USO) was up 0.03%.
Natural gas was down 0.58% and United States Natural Gas Fund (UNG)
was down 0.44%.
Gold was down 2.33%, and silver was down 2.47%. Among rare metal
funds, SPDR Gold Trust (GLD) was down 2.42% and iShares Silver
Trust (SLV) was up 2.46%.
Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US
Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were
Bona Film Group (BONA) was up 8.16% after saying its founder and
CEO Yu Dong has agreed to buy 21st Century Fox's (FOXA) 19.3%
interest in Bona for $71.4 million or $5.90 per American Depository
Share and that he will also sell 13.3% of his stake to Fosun Group,
for $5.90 per ADR. Fosun will buy 4.17 million shares from Dong,
after which Fosun's stake in the company will be 20.7% and Dong's
stake will be 32.3%. Bona said an affiliate of 21st Century Fox
bought the stake in May 2012. It said the sale back to Dong won't
have an impact on five film co-productions between the 21st Century
Fox and Bona, including Bride Wars, which began principal
photography in June of this year, or on the pipeline. FOXA shares
were up 0.17%.
Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH)
and Vanguard Health Care ETF (VHT) were higher. Biotech ETF iShares
NASDAQ Biotechnology Index (IBB) was up 0.64%.
Salix Pharmaceuticals (SLXP) and Progenics Pharmaceuticals
(PGNX) said the Food and Drug Administration (FDA) has informed
Salix that its RELISTOR subcutaneous injection, 20 mg/ml, has been
approved on the data submitted in the supplemental NDA (sNDA), for
the treatment of opioid-induced constipation (OIC) in patients
taking opioids for chronic non-cancer pain.
The FDA has directed Salix to work with and submit certain
information to the Division of Gastroenterology and Inborn Errors
Products (DGIEP). The requested information includes proposed
product labeling and a proposal for one or more post-marketing
observational cohort studies designed to assess the relative
incidence of Major Adverse Cardiovascular Events (MACE) among
chronic non-cancer pain patients initiating RELISTOR via
subcutaneous injection for OIC versus a comparator cohort.
PGNX was up 10.38% while SLXP was up 2.88%.
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