Active broad-market exchange-traded funds in Tuesday'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 weaker at the session's half. Actively traded PowerShares QQQ
) was down 0.58%.
U.S. stocks were also lower as upbeat economic data stoked more
concerns that the Federal Reserve would increase interest rates
sooner than expected. The Institute for Supply Management earlier
reported that its nonmanufacturing index grew to 58.7% from 56.0%
in June - the highest level since December 2005. Meanwhile, factory
orders climbed a seasonally adjusted 1.1%in June, according to a
report by the Commerce Department. At $503.2 billion, this gain was
the highest level on record.
Looking ahead, Activision Blizzard (ATVI), Groupon (GRPN), and
Walt Disney (DIS) are set to report their financial results in
after hours trading later.
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 0.10%.
Enzymotec (ENZY) tumbled some 38% to a record low after the
maker of bio-active lipid ingredients reported missed Q3 earnings
and revenue, and issued FY 2014 guidance below street estimates.
The company reported net income of $400,000, or $0.02 per share,
missing Capital IQ estimates of $0.09 per share. This is down from
net income of $2.3 million, or $0.12 per share for the same quarter
last year. Net revenue totaled $8.96 million, well below the
consensus estimate of $14.25 million, and down nearly 40% from Q2
For FY 2014, the company is expecting net income of $8 million
to $10 million, or EPS of $0.34 to $0.43, well below Cap IQ
estimates of $0.81 per share. Net revenue, based on the equity
method of accounting, is expected at $46 million to $52 million. On
a proportionate consolidation method, net revenue should total $62
million to $70 million.
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%.
NorthStar Realty Finance (NRF) and Griffin-American Healthcare
REIT II said their respective boards unanimously approved a
definite merger agreement under which NRF will acquire
Griffin-American in a stock and cash transaction valued at $4
billion, including about $600 million in debt. NRF is acquiring the
portfolio of the real estate investment trust, which consists
mostly of medical office buildings (43%) and senior housing
facilities (30%) in the U.S. and the U.K., at an approximate 6.4%
cap rate based on the company's estimate of 2015 NOI. The
transaction is expected to be neutral to NRF's cash available for
distribution and should close in Q4 2014. Griffin-American
stockholders will receive $11.50 per Griffin-American share
comprising: $7.75 per share in cash and $3.75 per share in NRF
common stock. NRF shares were up 7%.
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 0.06% while Semiconductor Sector Index Fund (SOXX) was up
ChannelAdvisor Corp (ECOM) was down 27.36% and reached a 52-week
low after reporting late Monday a Q2 non-GAAP net loss and revenue
beating Wall Street expectations and forecast above-consensus FY14
revenue. The company said that, excluding stock-based compensation
and other one-time items, its net loss narrowed to $7.5 million, or
$0.30 per share, expanding on a $4.5 million adjusted net loss last
year but still topping the Capital IQ consensus by $0.01 per share.
Revenue rose 30% year over year to $20.8 million, trumping
estimates by around $800,000.
For Q3, the company is expecting between $20.5 million to $20.9
million in revenue, in-line with the $20.86 million consensus. The
company also is projecting FY14 revenue in a range of $86 million
to $86.7 million, exceeding estimates by at least $240,000.
Dow Jones U.S. Energy Fund (IYE) was down 1.77%; Energy Select
Sector SPDR (XLE) was down 1.70%.
Petroquest Energy (PQ) was down 9.58% after the independent oil
and gas company reported Q2 earnings of $0.15 per share,compared
with $0.06 per share in the same period last year. Total gas and
oil sales were $60.58 million,up from $38.08 million in the
prior-year quarter. Analysts polled by Capital IQ were expecting
EPS of $0.14 and revenue of $64.2 million. PQ also reported that
its production for the quarter was 10.7 Bcfe, compared to 8.7 Bcfe
for the comparable period of 2013. Oil and NGL volumes made up
approximately 28% of second quarter 2014 production as compared to
22% in the second quarter of 2013.
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
Leapfrog Enterprises (LF) was down 16.10% after the company
reported late Monday a disappointing Q1 performance, compounded by
weak Q2 fiscal 2014 and full-year fiscal 2015 guidance. LF posted a
Q1 fiscal 2015 loss of $0.23 per share, one penny deeper than the
consensus of analysts polled by Capital IQ, and wider than a
prior-year Q1 loss of $0.05 per share. Revenues decreased 43% to
$47.0 million, missing revenues $50.8 million. For Q2 fiscal 2014,
LF offered guidance for a loss per share of $0.03 to a gain of
$0.01 and revenues in the range of $125 million to $130 million.
Analysts expect to see EPS of $0.39 on revenues of $219.4 million.
For full-year fiscal 2015, LF expects a loss per share of $0.04 to
a gain of $0.10 and revenues in the range of $480 million to $505
million. Analysts expect to see EPS of $0.22 on $572.7 million.
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