Active broad-market exchange-traded funds in Monday's regular
SPDR S&P 500 (
iPath S&P 500 VIX ST Futures ETN (
iShares MSCI Emerging Markets Index (
iShares Russell 2000 Index (
Direxion Daily Small Cap Bear 3X Shares (
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM and IVV
were weaker in session's half; actively traded PowerShares QQQ
(QQQ) was down 0.33%.
U.S. stocks continued to log heavy losses, but were off their
worst levels as geopolitical issues weighed on market sentiment.
The death toll in Gaza rose to more than 500 as Israel continued
its ground offensive. Meanwhile, in the aftermath of the downing of
Malaysian Airlines MH17, international outrage mounted following
reports that pro-Russian Ukrainian rebels were impeding access to
bodies at the crash site. With no economic data on tap for the day,
investors will be looking to the earnings reports scheduled for
release in Monday's after hours session. Companies reporting
include Netflix (NFLX), Texas Instruments (TXN), and Crocs
Power Play: Technology
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 lower. SPDR S&P International Technology Sector ETF
(IPK) was flat.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was
up 0.11% while Semiconductor Sector Index Fund (SOXX) was down
Extreme Networks (EXTR) was up nearly 16% after it reported
preliminary Q4 revenue is expected in the range of $154
million-$156 million, above prior guidance of $145 million -$150
million, and ahead of the analyst consensus of $145.7 million on
Capital IQ. Non-GAAP EPS is seen at $0.06 to $0.08, above its prior
view of $0.02 to $0.04 and ahead of estimates of $0.03 per share.
GAAP gross margin is expected to be in the range of 52.5% to 53.5%
compared to guidance of approximately 50%. Non-GAAP gross margin is
expected to be in the range of 56.5% to 57.5% compared to previous
guidance of 55%. GAAP operating expenses are expected to be in the
range of $95 million to $96.5 million compared to guidance of $89
million to $92 million. Non-GAAP operating expenses are expected to
be in the range of $77.5 million to $79 million which is slightly
above previous guidance of $76 million to $78 million.
Winners and Losers
Select Financial Sector SPDRs (XLF) was down 0.55%. Direxion
Daily Financial Bull 3X shares (FAS) was down 1.26% while its
bearish counterpart, FAZ, was up 1.22%.
BB&T (BBT) was down 4% after the bank reported a drop in net
earnings for Q2 as a result of mortgage and tax-related charges.
Revenues were slightly lower compared to last year. Net income
available to common shareholders was $425 million, or $0.58 per
diluted share, down from $547 million, or $0.77 per diluted share,
in the same period last year. After adjustments, diluted EPS was
$0.70, short of the Capital IQ consensus of $0.75. Total revenues
were $2.3 billion for the quarter, a decrease of $187 million
compared to the earlier quarter. The average analyst estimate is
for $2.3 billion, based on the Capital IQ survey.
Dow Jones U.S. Energy Fund (IYE) was down 0.12%; Energy Select
Sector SPDR (XLE) was down 0.10%.
NextEra Energy Partners, LP, (NEP) was down 1.39% after it
announced that the Bluewater Wind Energy Center in Huron County,
Ontario has begun commercial operation. The project is comprised of
37 turbines and capable of generating up to 60-megawatts of
electricity, enough to power approximately 15,000 homes in Ontario.
The Bluewater Wind Energy Center is owned by Bluewater Wind, LP, an
indirect subsidiary of NextEra Energy Canada Partners Holdings,
Crude was up 0.92%; United States Oil Fund (USO) was up 0.50%.
Natural gas was down 2.73% and United States Natural Gas Fund (UNG)
was down 2.62%.
Gold was up 0.28%, and silver was up 0.47%. Among rare metal
funds, SPDR Gold Trust (GLD) was up 0.14% and iShares Silver Trust
(SLV) was up 0.42%.
Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US
Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were
Six Flags Entertainment (SIX) was down 6.37% after the
theme-parks operator reported Q2 sales below analysts'
expectations, although earnings were slightly ahead of the Street
view. The company's Q2 earnings rose to $66.3 million, or $0.67 per
diluted share, from $47.4 million, or $0.47 per share, a year
earlier. That is above the $0.64 average estimate from analysts
polled by Capital IQ. Sales rose to $376.6 million from $363.7
million, missing the $396 million consensus estimate.
Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH)
and Vanguard Health Care ETF (VHT) were weaker. Biotech ETF iShares
NASDAQ Biotechnology Index (IBB) was up 2.42%.
Biolase (BIOL) was up more than 9% after it said it has raised
$12 million in a private placement by selling nearly 6.3 million
shares of its common stock at $1.92 per share to Jack W. Schuler,
Oracle Partners L.P. and other Oracle funds, Birchview Capital and
certain BIOLASE directors and officers. In connection with the
transaction, BIOLASE agreed to use commercially reasonable efforts
to file within 30 days of the closing a registration statement with
the Securities and Exchange Commission to register the resale of
the shares issued at the closing. Biolase expects the private
placement will close around July 22. The proceeds will be used to
repay all outstanding indebtedness under Biolase's loan agreement
with Comerica Bank and for working capital and general corporate
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