Mid-Day ETF Update: ETFs, Stocks Recover From Early Losses Focus Shifts to Trade Deficit Data, Upbeat Earnings

By MidnightTrader.com Staff,

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Active broad-market exchange-traded funds in Wednesday's regular session:

SPDR S&P 500 ( SPY ): -0.33%

iShares MSCI Emerging Markets Index ( EEM ): -1.16%

iShares MSCI Japan ( EWJ ): -0.47%

iPath S&P 500 VIX ST Futures ETN ( VXX ): -3.11%

PowerShares QQQ Trust, Series 1 ( QQQ ): +0.42%

Select Sector SPDR Fund - Financial (XLF): +0.68%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV turned positive at the session's half. Actively traded PowerShares QQQ ( QQQ ) was up 0.42%.

U.S. stocks were also climbing higher as investors took a break from worrying over global geopolitical issues to focus on some bright spots in economic data releases and earnings news.

Earlier, the Commerce Department reported that the U.S. trade deficit fell 7% to $41.5 billion in June - a narrower-than-expected decline as imports of petroleum fell to the lowest level since late 2010. U.S. exports edged up 0.1% to $195.9 billion, while imports fell 1.2% to $237.4 billion.

Molson Coors Brewing (TAP) was S&P 500's top gainer following the company's better-than-expected financial results; on the other hand, Groupon (WAG) is among major losers after it issued mixed guidance for Q3.

Power Play: Technology

Technology Select Sector SPDR ETF (XLK) was down 0.10% while other tech funds 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 edging higher. SPDR S&P International Technology Sector ETF (IPK) was flat.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was up 0.95% and Semiconductor Sector Index Fund (SOXX) was up 0.78%.

Sprint (S) tumbled nearly 20% following reports from The New York Times, The Wall Street Journal and Bloomberg, among others, which said Sprint and Softbank decided to drop their pursuit of T-Mobile US (TMUS) after conceding that antitrust regulators would block a deal. Those reports cited unnamed sources, and Sprint didn't specifically confirm them.

Sprint announced earlier that it has appointed Marcelo Claure as its next president and chief executive, effective Aug. 11, confirming earlier market chatter that it was about to name a new CEO. Claure, 43, joined the Sprint board in January and is the founder and CEO of Brightstar Corp., a subsidiary of SoftBank Corp., the Japanese telecommunications giant that is also Sprint's parent. Claure will resign his position at Brightstar effective Aug. 11 and SoftBank said it would acquire Claure's remaining interest in the company.

Claure succeeds Dan Hesse, who had been Sprint's president and CEO since December 2007 and led the company through a series of acquisitions, including its merger with SoftBank, and a multi-year overhaul of its nationwide network, including the shutdown of the Nextel network.

In its release on Claure's appointment, Sprint quoted Claure as saying "while consolidating makes sense in the long term, for now, we will focus on growing and repositioning Sprint."

Winners and Losers


Select Financial Sector SPDRs (XLF) was up 0.68%. Direxion Daily Financial Bull 3X shares (FAS) was up 1.63% while its bearish counterpart, FAZ, was down 1.54%.

Voya Financial (VOYA) wa down 2.42% after it reported Q2 operating earnings of $213 million, or $0.83 per diluted share beating analysts' consensus estimates of $0.71 per share. In Q2 2013, the company reported earnings of $177 million or $0.71 per share.


Dow Jones U.S. Energy Fund (IYE) was up 0.72%; Energy Select Sector SPDR (XLE) was up 0.67%.

Parker Drilling Company (PKD) was up nearly 10% after it reported Q2 earnings and sales that slightly exceeded analysts' estimates. The provider of contract drilling and drilling-related services and rental tools to the energy industry said earnings excluding items was $0.12 per share compared to the $0.10 average estimate from analysts polled by Capital IQ. The company didn't provide a year earlier adjusted EPS figure. Revenue rose to $254.23 million from $225.95 million, coming in ahead of the $245.14 million consensus estimate. Reported net income nearly doubled to $15.7 million or $0.13 per diluted share from $8.3 million or $0.07 a year ago.


Crude was down 0.05%; United States Oil Fund (USO) was down 0.36%. Natural gas was up 0.95% and United States Natural Gas Fund (UNG) was up 1.03%.

Gold was up 1.76%, and silver was up 0.94%. Among rare metal funds, SPDR Gold Trust (GLD) was up 1.45% and iShares Silver Trust (SLV) was up 0.89%.


Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were firmer.

Molson Coors Brewing Co. (TAP) was up 6.25% after it reported Q2 results on Wednesday that beat analysts' consensus estimates on both earnings and revenue. The company posted underlying after-tax income of $292.7 million, or $1.57 per diluted share, compared to $271.3 million, or $1.47 per diluted share in Q2 2013. Analysts' were expecting EPS of $1.47 per share. On a GAAP-basis, TAP posted net income attributable to the company of $290.7 million, or $1.56 a share, up from $267.3 million, or $1.44 a share in the year-earlier period. Sales rose to $1.19 billion from $1.18 billion, topping the consensus of $1.18 billion. TAP also said worldwide beer volume fell 0.9% to 16.6 million hectoliters in Q2 2014.

Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were in the green. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 0.48%.

Globus Medical (GMED) was down 17% after the company reported late Tuesday thatQ2 earnings were in line with analysts' expectations, while revenue fell short; it also provided guidance for fiscal 2014 below Street estimates. The medical device company reported Q2 earnings of $0.22 per share, compared with $0.08 per share in the prior-year period. Non-GAAP EPS was $0.23, up from $0.21 EPS in the comparable quarter a year ago. The Capital IQ analyst estimate is for $0.23 EPS. Revenue was $113.6 million, up 6.1% from $107 million in the same quarter last year. Analysts were expecting revenue of $119.83 million.

The company now expects fiscal 2014 revenue of $460 million - $465 million, versus the Street view of $482.87 million. It maintained its EPS guidance of $0.90 - $0.92, below the consensus of $0.94 EPS.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: SPY , EEM , EWJ , VXX , QQQ

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