Mid-Day ETF Update: ETFs Broadly Mixed After Disappointing Durable Goods; Energy, Gold Shine

By MidnightTrader.com Staff,

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Active broad-market exchange-traded funds at midday Wednesday:

SPDR S&P 500 ( SPY ): now flat

iPath S&P 500 VIX short-term futures -0.05%

PowerShares QQQ ( QQQ ): -0.32%

iShares Russell 2000 ( IWM ): +0.02%

iShares MSCI Japan Index Fund (IWJ): +1.5%, hit new 52 week highs

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are slightly firmer. But actively traded PowerShares QQQ ( 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 ( AAPL ) and Ford ( F ).

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.

Apple's ( AAPL ) 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. ( F ) reported its best quarter in more than a decade.

Winners and Losers

Financial -

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 lows.

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%.

Industrial -

Industrial ETFs 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 deliveries.

Energy -

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.

Commodities -

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 -

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 2.2%

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 -

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 EPS.

Technology -

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 edging higher.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) are both modestly higher.

SPDR S&P International Technology Sector ETF (IPK) has gained 1.85%.

In sector news, Apple ( AAPL ) 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.

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: AAPL , F , IWM , QQQ , SPY

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