Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 (
PowerShares QQQ Trust, Series 1 (
iPath S&P 500 VIX Short Term Futures TM (
): -0.3%, near year low
Financial Select Sector SPDR (
iShares Russell 2000 Index (
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and
others, are firmer. Actively traded PowerShares QQQ (
) is up 0.2%.
U.S. stocks are edging higher after wavering between gains and
losses following a slew of mixed economic data releases. U.S.
builder sentiment rose two points in August to 37, up from 35 in
July - the highest reading since March 2007. Earlier, it was
reported that the New York manufacturing activity contracted in
August for the first time in nine months. The Labor department also
reported that U.S. consumer prices were unchanged in July, while
the core consumer price index rose 0.1%. CPI rose 1.4% over the
year through July, while real average hourly earnings were
unchanged in July.
Winners and Losers
Select Financial Sector SPDRs (
) is up 0.4%. Direxion Daily Financial Bull 3X shares (FAS) is up
0.9%. Its bearish counterpart, FAZ, is down 1%.
Among financial stocks, Ellington Financial LLC (EFC) is down 4%
after the mortgage investment firm priced an underwritten public
offering of 3.5 million shares at $22.45 each, generating $78.5
million in gross proceeds. Underwriters received 30-day options to
purchase up to an additional 525,000 common shares to cover
overallotments. The offering is subject to customary closing
conditions and is expected to close on August 20. EFC plans to use
the proceeds to acquire targeted assets, including residential
mortgage-backed securities backed by prime jumbo, Alt-A,
manufactured housing and subprime residential mortgage loans. It
also may purchase similar securities guaranteed by a U.S.
government agency or government-sponsored enterprise as well as for
working capital and general corporate purposes.
Lloyds Banking Group Plc (LYG) is up 1% after the company
reportedly agreed to sell private equity-related investments for
1.03 billion pounds ($1.6 billion) as it shrinks following its 2008
bailout. A report by BusinessWeek says the sale of the portfolio,
which had losses of 40 million pounds in 2011, to a fund financed
by British private-equity investor Coller Capital Ltd., will result
in a pretax gain for Lloyds after it reverses a provision.
Tech ETFs are edging higher in mid-day action: Technology Select
Sector SPDR ETF (XLK), up 0.03% and closer to year highs; iShares
Dow Jones US Technology ETF (IYW), up 0.3%; iShares S&P North
American Technology ETF (IGM), up 0.4%; and iShares S&P North
American Technology-Software Index (IGV), up 0.9%.
SPDR S&P Semiconductor (XSD) is up 0.81%; Semiconductor
Sector Index Fund (SOXX) is up near 1%.
SPDR S&P International Technology Sector ETF (IPK) is
In tech news, JDS Uniphase (JDSU) shares are up 10% after the
communications testing and measurement company reported adjusted
earnings of $0.15 a share on $439.3 million in revenue. Analysts,
on average, anticipated EPS of $0.12 on revenue of $423 million,
according to Capital IQ. Looking forward, JDSU sees non-GAAP
earnings of $0.59 a share, a penny below the analyst consensus.
Revenues are projected to be $1.682 billion, trailing the Street
view by $44 million.
Nokia (NOK) is up more than 3% after Chief Executive Stephen
Elop promised to unveil a new smartphone using Microsoft's latest
Windows 8 software soon, according to Reuters, raising the prospect
it will be launched in early September before rival Apple (AAPL)
promotes its new iPhone. Shares of Apple are fluctuating between
gains and losses, now lower.
Industrial ETFs are firmer at mid-day: Vanguard Industrials
(VIS), up 0.1%; iShares Trust Dow Jones U.S. Industrial Sector
Index Fund (IYJ), up 0.4%; and Select Sector SPDR-Industrial (XLI),
Deere & Company (DE) is down 6.4% after posting Q3 earnings
of $1.98 per share, versus the Capital IQ consensus of $2.32.
Revenues were $9.59 mln, versus the analyst estimate of $9.53 mln.
The company expects Q4 and FY12 revenues to grow 13%. For FY12, net
income attributable to DE is anticipated to be $3.1 bln, down from
$3.35 bln, and near the consensus of $3.3 bln.
Dow Jones U.S. Energy Fund (IYE) is down 0.2%; Energy Select
Sector SPDR (XLE) is also lower, down 0.2%.
In company news, Renewable Energy Group (REGI) is up 6% after
the biodiesel producer reported Q2 earnings of $0.39 a share,
reversing a $0.78 a share net loss in the year-ago quarter and
blowing past the Capital IQ consensus expecting a $0.24 a share
profit. Revenues rose 38.5% to $271.9 million, beating expectations
by just under $10 million.
Matador Resources Company (MTDR) shares are down more than 3%
after the company reported second quarter 2012 net loss of
approximately $6.7 million and a loss of $0.12 per common share.
This compares with consensus estimate of $0.22. Revenues came in at
$55.9 million, exceeding the $42.6 million estimate. In the same
period last year, the company had a net income of approximately
$7.2 million and earnings of $0.17 per share on revenues of $22.1
NGL Energy Partners LP (NGL) is down 0.8% after reporting a net
loss of $24.7 million, or $0.76 per share, for the first quarter
ended June 30, 2012, compared to consensus estimate of $0.41.
Revenues came in at $326.4 million, exceeding the $281.3 million
estimate. In the same period last year, net loss was $6.8 million,
or $0.53 per share, on revenues of $190.8 million.
Crude was up slightly while natural gas was down 2.5%, nearing
its 52-week low of $2.57. United States Oil Fund (USO) is up more
than 1% while United States Natural Gas Fund (UNG) is down
Gold was up around 0.2%; silver was up 0.14%. Among rare metal
funds, SPDR Gold Trust (GLD) is up 0.3% and iShares Silver Trust
(SLV) is up 0.2%.
Healthcare and biotech ETFs are higher: Health Care SPDR (XLV),
up 0.3% at year high levels; iShares NASDAQ Biotechnology Index
(IBB), up 0.8%; Vanguard Health Care ETF (VHT), up 0.2% to near
year highs; and iShares Dow Jones US Healthcare (IYH), up 0.4% and
hit new year highs.
In corporate news, Galena Biopharma Inc. (GALE) is up more than
3% after the biotech company significantly narrowed its Q2 net loss
to $0.003 a share - in from year-ago loss of $0.10 a share.
Analysts, on average, were expecting a $0.17 a share loss. GALE is
working on prospective cancer treatments, including a potential
vaccine now in late-stage testing for certain forms of breast
cancer. It had no revenues during the period.
Syneron Medical Ltd. (ELOS) is up 1%. The company earlier
reported Q2 revenues of $68.07 mln, topping analyst estimates of
$66.93 mln and beating the same period last year's $60.55 mln. ELOS
also reported a Q2 earnings loss of $0.05, wider than analyst
estimates of $0.04 and Q211's EPS loss of $0.01.
3SBio (SSRX) is up 2.9% but off a day high $12.40 after it
reported Q2 earnings of $0.29 per ADS, versus the Capital IQ
consensus of $0.24. Revenues were $28.1 mln, versus the analyst
estimate of $25.84 mln. The company reaffirms its guidance for
FY12, and still expects revenues of $99 mln - $108 mln, in line
with the consensus of $102.71 mln.
Power Play -
ETFs in the space are firmer: Consumer Staples Select Sector
SPDR (XLP), down 0.03%; iShares Dow Jones US Consumer Goods (IYK),
up 0.11% to near year highs; and Vanguard Consumer Staples ETF
(VDC), up 0.15%.
SPDR S&P Retail (XRT) is up 0.3%; PowerShares Dynamic Retail
(PMR), up 0.3%; and Market Vectors Retail ETF (RTH), up 0.1% but
has hit a new year high.
Among stocks, Physicians Formula Holdings (FACE) is up 15% and
near the 52-week high of $4.38, after inking a merger agreement
with Swander Pace Capital under which affiliates of Swander Pace
will acquire Physicians Formula for $4.25 per share in cash, or
approximately $65 million.
Staples (SPLS) is down 16% and has sunk to a new 52-week low of
$10.99, after it reported Q2 earnings of $0.22 per share, ex
one-time items, in line with the Capital IQ consensus of $0.22.
Revenues were $5.5 bln, versus the analyst estimate of $5.73 bln.
The company expects FY12 revenues to be flat year over year, at
about $25 bln, in line with the consensus of $25.25 bln. Full year
diluted earnings per share is expected to increase in the low
Target (TGT) is up more than 2% and has hit new year highs after
reporting Q2 earnings of $1.06 per share, ex one-time items, versus
the Capital IQ consensus of $1.01. Revenues were $16.78 mln, versus
the analyst estimate of $16.83 mln. For Q3, the company sees GAAP
EPS of $0.69 - $0.93, in line with the consensus of $0.75. The
company also raises its FY12 GAAP EPS outlook to $4.20 - $4.40, in
line with the Street view of $4.28.