Mid-Day ETF Update: ETFs, Stocks Turn Positive as Concerns Over Interest Rate Hike, Portugal Ease

By MidnightTrader.com Staff,

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

SPDR S&P 500 ( SPY ): +0.21%

iShares MSCI Emerging Markets Index ( EEM ): +0.50%

iPath S&P 500 VIX ST Futures ETN ( VXX ): -1.85%

iShares Russell 2000 Index ( IWM ): +0.03%

PowerShares QQQ Trust, Series 1 ( QQQ ): +0.50%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were firmer at the session's half. Actively traded PowerShares QQQ ( QQQ ) was up 0.50%.

U.S. stocks turned positive as worries over the Federal Reserve's decision to increase interest rates were eased, with investors hoping it will be on hold for a while longer. Market sentiment also brightened somewhat following the report that Banco de Portugal threw a lifeline to struggling Banco Espirit Santo.

With no economic data on tap, investors will continue to focus on earnings reports. American International Group (AIG), Leapfrog (LF) and Marathon Oil (MRO) are all set to report their financial results in the after hours session.

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 up 0.07%.

ANI Pharmaceuticals (ANIP) was up 14.47% after reporting its net loss dropped on lower expenses and on income tax benefits. The specialty pharmaceutical company said its Q2 net loss was 2.4 million or $0.21 per share compared to a loss of $4.6 million or $6.03 a year ago. The sharp decline in the per-share loss was due to the ten-fold increase in shares outstanding on a follow-on public offering. No analyst estimates were available for comparison. Revenue rose 8% to $6.6 million in the quarter and for the last six months of the year, the company expects sales between $28 million and $30 million. Adjusted non-GAAP earnings per share, excluding non-cash stock compensation expense, is estimated to be between $0.90 and $1.00 per share,

Winners and Losers


Select Financial Sector SPDRs (XLF) was up 0.27%. Direxion Daily Financial Bull 3X shares (FAS) was up 0.59% while its bearish counterpart, FAZ, was down 0.54%.

Realogy Holdings (RLGY) was up 5.51% after it reported Q2 revenue of $1.5 billion and earnings of $0.59 per share, both ahead of the analyst consensus of $1.48 billion in revenue and earnings of $0.56 per share, according to Capital IQ data.

"Looking ahead, third quarter comparisons are difficult given exceptional homesale transaction volume growth of 29% in the third quarter of 2013 for RFG and NRT combined," Anthony Hull, Realogy's executive vice president and chief financial officer, said. "For the third quarter of 2014, based on our closed sales activity in July, along with contracts opened in June and July, we expect homesale sides to be down -4% to -6% year-over-year, and average sale price to increase +4% to +6% on a combined basis. As a result, we expect to see homesale transaction volume in the range of -2% to +2% year-over-year this quarter for RFG and NRT combined."


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 firmer. SPDR S&P International Technology Sector ETF (IPK) was down 0.86%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 0.24% while Semiconductor Sector Index Fund (SOXX) was up 0.16%.

BroadSoft (BSFT) was up 4% after it reported Q2 results above the Street view and increased its full-year revenue guidance. The provider of Internet protocol-based communications services reported Q2 EPS of $0.31, down from $0.32 in Q2 2013 but topping analysts' mean estimate of $0.25. Total revenue of $52.5 million was up from $44 million in Q2 2013 and beat analyst projections of $48.9 million.


Dow Jones U.S. Energy Fund (IYE) was up 0.55%; Energy Select Sector SPDR (XLE) was up 0.57%.

Tsakos Energy Navigation (TNP) was down 6.23% after issuing disappointing Q2 results. The deep sea freight company reported lower-than-expected Q2 revenue of $73.6 million compared to the average street estimate of $77.7 million as compiled by S&P Capital IQ. The Greece-based company reported net profit of $0.2 million was higher than the loss of $1.5 million of last year's Q2 2013. Although, operating income of $8.5 million was down year-over-year due to higher operating expenses. Q2 average daily operating costs per vessel cam in at $7,971, up 3.1% from $7,728 in last year's Q2. The company notes the "vibrant" crude transportation market of the first quarter lost steam moving into the second quarter.


Crude was up 0.10%; United States Oil Fund (USO) was up 0.39%. Natural gas was up 0.84% and United States Natural Gas Fund (UNG) was up 0.72%.

Gold was down 0.47%, and silver was down 0.67%. Among rare metal funds, SPDR Gold Trust (GLD) was down 0.42% and iShares Silver Trust (SLV) was down 0.59%.


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

Retail ETFs SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR), and Market Vectors Retail ETF (RTH) were modestly higher.

Walgreen (WAG) was up some 2% after announcing it has appointed Timothy McLevish as executive vice president and chief financial officer, effective immediately. McLevish comes to Walgreens from Kraft Foods Group (KRFT), where he most recently served as executive vice president and chief financial officer. He succeeds Wade D. Miquelon, who will continue as an advisor to assist in the transition, and will "move forward to pursue several new opportunities outside of the company," Walgreen said.

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 , VXX , IWM , QQQ

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