Active broad-market exchange-traded funds in Friday's regular
SPDR S&P 500 (
iShares MSCI Emerging Markets Index (
iPath S&P 500 VIX ST Futures ETN (
PowerShares QQQ Trust, Series 1 (
iShares Russell 2000 Index (
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM and IVV
were mostly lower at the session's half. Actively traded
PowerShares QQQ (
) was down 0.73%.
U.S. stocks slipped further into the negative territory and are
set to end the week lower as investors digested a slew of mixed
data, while geopolitical tensions in Ukraine and ongoing violence
in Gaza continued to weigh on market sentiment. Earlier losses were
spurred by the weaker-than-expected gains in non-farm payrolls for
July and consumer spending for May.
In economic data, construction spending plunged 1.8% in June,
missing estimates; May's construction spending,on the other hand,
was revised upward to a 0.8% gain. Also missing Wall Street
expectations, the final University of Michigan/Thomson Reuters
consumer sentiment index was 81.8, down from the initial reading of
82.5. Meanwhile, Markit's U.S. manufacturing PMI reading for July
fell to 55.8 for the final July reading versus June's 57.3 and the
56.3 preliminary print for last month. Finally, July ISM
manufacturing jumped to 57.1 after slipping 0.1 point to 55.3 in
June - the highest in three years, and beating forecasts.
Power Play: Health Care
Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH)
and Vanguard Health Care ETF (VHT) were in the red. Biotech ETF
iShares NASDAQ Biotechnology Index (IBB) was down 0.98%.
Cambrex (CBM) was down 13.39% after it reported late Thursday
better-than-expected financial results for Q2 ended June 30, and
raised its guidance for fiscal 2014 above Street forecasts. The
life sciences company posted Q2 adjusted income from continuing
operations of $11.0 million or $0.35 per share, compared with the
prior-year period's $4.1 million or $0.13 per share. Revenue was
$98 million,up 59% from $61.6 million in the same quarter last
year. Analysts polled by Capital IQ were expecting EPS of $0.28 on
revenues of $87.57 million.
The company raised its fiscal 2014 guidance, now expecting a 13%
- 16% increase in revenue, from fiscal 2013's revenue of $318.18
million. This calculates to revenue of $359.54 million - $369.09
million, versus the Street view of $351.56 million. The prior
growth guidance range was 8% - 12%. Earnings are now expected to be
$1.07 - $1.15 EPS, versus the Street view of $1.01. The prior
guidance range was for EPS of $$0.99 - $1.10.
Winners and Losers
Select Financial Sector SPDRs (XLF) was down 0.98%. Direxion
Daily Financial Bull 3X shares (FAS) was down 2.52% while its
bearish counterpart, FAZ, was up 2.68%.
Green Dot Corp (GDOT) was up 10.62% after the pre-paid debit
card company Thursday night posted Q2 per-share earnings that beat
analyst projections and raised its FY14 EPS forecast above the
Street consensus. The company reported Q2 net income of $0.41 per
share, excluding non-recurring items, beating the Capital IQ
consensus by $0.16. Revenue rose 4.5% year over year to $147.01
million, lagging estimates by around $6.11 million.
Looking forward to its FY14 ending in December, GDOT is now
expecting net income in a range of $1.37 to $1.41 per share, up
$0.15 per share from its previous forecast and exceeding the
consensus call by at least $0.10 per share. It also sees revenue
this year in a range of $640 million to $650 million, topping
estimates by at least $5.23 million.
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 weaker. SPDR S&P International Technology Sector ETF
(IPK) was flat.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was
down 0.42% while Semiconductor Sector Index Fund (SOXX) was down
ServiceSource International (SREV) was down 27.31% after the
company said that for Q2, or the quarter ended June 30, 2014, its
loss was wider than expected, while revenue fell short of analysts'
expectations. The service revenue management company reported Q2
non-GAAP net loss in the quarter was $7.3 million or $0.09 loss per
share, compared with non-GAAP net income of $1.5 million or $0.02
per share in the prior-year period. The Capital IQ analyst estimate
is for $0.06 loss per share. Non-GAAP revenue was $66.3 million,
down 2% from $67.7 million in the same quarter last year. Analysts
were expecting revenue of $69.86 million.
Dow Jones U.S. Energy Fund (IYE) was down 1.44%; Energy Select
Sector SPDR (XLE) was down 1.43%.
LRR Energy LP (LRE) was down 4.20% after it reported in
Thursday's after hour session that its net loss during the three
months ended June 30 widened to $7.33 million, or $0.27 per share,
from $4.64 million during the same quarter last year, and trailing
the Capital IQ consensus by $0.02 per share. Total revenue also
plunged, declining 59.9% year over year to $17.4 million from $43.4
million last year and missing the Street view by around $15.56
million. The company also raised its forecast for FY14 production
by around 50 barrels per day from its prior guidance to a new range
of 6,450 to 6,550 barrels per day.
Crude was down 0.93%; United States Oil Fund (USO) was down
0.74%. Natural gas was up 0.10% and United States Natural Gas Fund
(UNG) was up 0.33%.
Gold was up 1.00%, and silver was down 0.37%. Among rare metal
funds, SPDR Gold Trust (GLD) was up 0.94% and iShares Silver Trust
(SLV) was up 0.10%.
Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US
Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were
Skullcandy (SKUL) was up 8.14% after it reported Q2 EPS of
$0.06, up from a year ago loss of $0.02 per share and ahead of the
analyst consensus of $0.01 per share on Capital IQ. Sales were
$53.9 million, up from $50.8 million last year and in line with the
Street view. For the full year 2014, the company expects GAAP EPS
of $0.22 to $0.26, vs. expectations of $0.19 per share. Sales are
seen increasing in the mid- to high-single digit percentage range
over 2013 levels. For Q3, the company expects sales to increase
between 7% and 9% over 2013 levels and sees GAAP EPS of $0.02 to
$0.05 per share. The Street view is GAAP EPS of $0.05 per
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