Active broad-market exchange-traded funds at midday
SPDR S&P 500 (
): now flat
iPath S&P 500 VIX short-term futures -0.05%
PowerShares QQQ (
iShares Russell 2000 (
iShares MSCI Japan Index Fund (IWJ): +1.5%, hit new 52 week
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and
others, are slightly firmer. But actively traded PowerShares QQQ (
) is down 0.3%.
U.S. stocks are modestly lower, with all three major U.S. equity
indexes in negative territory, as investors weigh disappointing
durable goods data against a slew of corporate earnings, including
beats from heavyweights Apple (
) and Ford (
According to the Commerce Department, durable-goods orders fell
5.7% in March, well below the 3.2% decline forecast by economists
polled by MarketWatch. Stripping out the volatile transportation
sector, orders fell a smaller 1.4%. Orders for core capital goods
edged up 0.2% after a 4.8% decline in February. Durable orders for
February, meanwhile, were revised down to show a 4.3% gain from a
prior reading of a 5.6% increase.
) highly anticipated earnings report featured results that beat
expectations, but soft guidance is driving the company's stock
lower, with shares down 1.2% at near $401.20 in recent dealings -
albeit well above a day low $392.50. Earnings from Boeing (BA) were
also upbeat, while Ford Motor Co. (
) reported its best quarter in more than a decade.
Winners and Losers
Select Financial Sector SPDRs (XLF) is up 0.4% and near year
highs. Direxion Daily Financial Bull 3X shares (FAS) is up 1.5%.
Its bearish counterpart, FAZ, is down 1.5% and nearer year
Among financial stocks, NASDAQ (NDAQ) reported Q1 earnings of
$0.64 per share, versus the Capital IQ consensus of $0.62. Revenues
were $418 million, versus the analyst estimate of $419.49 million.
The company also said that it may pay $10 million to compensate
members of the NASDAQ Stock Market for qualified losses arising
directly from the system issues experienced with the Facebook (FB)
IPO. The shares are down 2.7%.
Vanguard Industrials (VIS), iShares Trust Dow Jones U.S. Industrial
Sector Index Fund (IYJ), and Select Sector SPDR-Industrial (XLI)
are all modestly firmer - all the best part of 1% higher.
Among stocks, Boeing (BA) is up 3.4% and has hit 52 week highs
after it reported first quarter earnings that beat the street and
issued positive guidance. Boeing said non-GAAP Q1 EPS increased 24%
to $1.73, up from $1.40 the previous year, were driven by strong
performance across the company's businesses. GAAP earnings came in
at $1.44, against $1.22 last year. Consensus was for EPS of $1.47.
Revenue of $18.9 billion versus $19.4 billion previously, down 3%,
reflected higher deliveries on the 737 and 777 offset by lower 787
Dow Jones U.S. Energy Fund (IYE) is up 1.3%. Energy Select
Sector SPDR (XLE) is up 1.4%.
In sector news, Cenovus (CVE) is up more than 1% after it
reported Q1 operating earnings of $0.52, up from $0.45 per share in
the year ago quarter.
June crude is up 1.8%; July natural gas is down 1.6%. United
States Oil Fund (USO) is up 2%. United States Natural Gas Fund
(UNG) is down 0.9%.
June gold is up 0.5% and silver for July delivery is up 0.32%.
Among rare metal funds, SPDR Gold Trust (GLD) is up 0.53%; iShares
Silver Trust (SLV) is down 0.1%. Direxion Daily Gold Miners Bull 3X
Shares (NUGT) is one of the top performers, gaining 10%.
Among stocks, Barrick Gold Corporation (ABX) is up 3% after it
reported first quarter 2013 adjusted earnings per share of $0.92,
better than consensus estimate of $0.91. Revenues for the quarter
came in at $3.4 million versus consensus estimate of $3.56 billion.
Year-ago adjusted earnings per share was $1.10, with revenues of
$3.64 billion. For 2013, the company expects total capex to be $5.2
billion to $5.7 billion. It expects production to be between 7
million to 7.4 million ounces.
Healthcare ETFs Health Care SPDR (XLV), Vanguard Health Care ETF
(VHT), and iShares Dow Jones US Healthcare (IYH) are all broadly
lower. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is down
In corporate news, Opko Health Inc. (OPK) is down 3% after it
said it has signed a definitive merger agreement to acquire
biopharmaceutical company PROLOR (PBTH) in an all-stock
transaction. Under the terms of the agreement, which has been
approved by the boards of directors of both companies, holders of
PROLOR common stock will receive 0.9951 shares of OPKO common stock
for each share of PROLOR common stock. Based on a price of $7.03
per share of OPKO common stock, the transaction is valued at
approximately $480 million, or $7 per share of PROLOR common stock.
PBTH shares are up 8.5% at $6.33, having earlier hit a new year
high of $6.41.
Consumer ETFs Consumer Staples Select Sector SPDR (XLP), iShares
Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples
ETF (VDC) are all showing losses either side of 1%.
In sector news, Procter & Gamble (PG) is down 5.2% after
reporting Q1 core earnings of $0.99 per share, ex one-time items,
versus the Capital IQ consensus of $0.96. Revenues were $20.6
billion, versus the analyst estimate of $20.75 billion. For FY13,
the company is increasing the low end of the range of core earnings
per share guidance by $0.02 to $3.96 - $4.04, versus the analyst
estimate of $4.05. The company expects Q4 core EPS in the range of
$0.69 - $0.77, ex one time items, versus the Street view of $0.81
Tech ETFs Technology Select Sector SPDR ETF (XLK) is down 0.2%.
iShares Dow Jones US Technology ETF (IYW) is slightly up, iShares
S&P North American Technology ETF (IGM) is slightly down and
iShares S&P North American Technology-Software Index (IGV) is
Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and
Semiconductor Sector Index Fund (SOXX) are both modestly
SPDR S&P International Technology Sector ETF (IPK) has
In sector news, Apple (
) is now down 0.75% at near $403.20 - but is well above a day low
$392.50 - after it reported late Tuesday 2Q13 earnings that beat
analyst estimates on both the top and bottom line. However, gross
margins of 37.5% were light (consensus of 38.6%) and at the low end
of guidance, which is disappointing. On the call, management gave
more granularity on this citing a mix shift to iPads/iPad Minis, as
well as a change in service policies. iPhone ASPs were also
negatively impacted by customers buying the iPhone4, which are more
affordable (instead of the iPhone5).
AAPL announced its capital allocation plan in conjunction with
the earnings call, which was a positive surprise to investors. The
expectation was for two separate announcements. Specifically, the
company forecast that it would use its $100 billion of cash by
calendar year 2015. Additionally, the company increased its share
repurchase program by $50 billion to $60 billion (previously $10
billion) and increased its dividend by 15% to $3.05 (previously
$2.65). Apple's guidance for 3Q13 came in lower than consensus with
revenues of $33.5 billion and $35.5 billion, other income of $300
million, and a tax rate of 26%. This likely implies an EPS below
consensus, and analysts will likely be revising down their numbers
for. However, it is worth noting that the buy back announced today
will result in a lower share count, which will positively impact
earnings per share going forward.