Referenced Stocks

Mid-Day ETF Update: ETFs Firmer, Stocks Extend Gains as Fed Boosts Bond Purchases by $45 Bln; Focus On Fed

By Midnight Trader December 12, 2012, 01:07:31 PM EDT

Active broad-market exchange-traded funds at mid-day:

SPDR S&P 500 ( SPY ): +0.7%

iShares MSCI Emerging Markets Index ( EEM ): +0.9%.

Financial Select Sector SPDR ( XLF ): +1.2%, nearer 52 week highs.

iShares MSCI Japan Index ( EWJ ): +0.6%

iShares Russell 2000 Index ( IWM ): +0.37%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, continue to be firmer. Actively traded PowerShares QQQ (QQQ) has turned positive and is now up 0.35%.

U.S. stocks have extended their gains with market watchers optimistic following the Federal Reserve's policy announcement that it will boost the size of its Treasury purchases by $45 bln, as expected. The move was made as part of an effort to reduce the "elevated" unemployment rate, according to a report on Market Watch. Earlier, the markets saw gains after the Department of Commerce reported that the U.S. import price index fell by 0.9% while export prices rose 0.7% in November. Investors will now turn their focus on Fed Chairman Ben Bernanke who will speak at a press conference scheduled at 2:15 PM ET.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) is up 1.2% and near 52 week highs. Direxion Daily Financial Bull 3X shares (FAS) is up 3%. Its bearish counterpart, FAZ, is down 3% and has touched 52 week lows.

Among financial stocks, NorthStar Realty Finance Corp. (NRF) is down near 4% after the firm priced its previously announced underwritten public offering of 25,000,000 shares of common stock at a public offering price of $6.40 per share. The offering is expected to close on December 17, 2012.

Technology -

Tech ETFs are higher: Technology Select Sector SPDR ETF (XLK), up 0.36%; iShares Dow Jones US Technology ETF (IYW), up 0.06%; iShares S&P North American Technology ETF (IGM), up 0.04%; and iShares S&P North American Technology-Software Index (IGV), up 0.5%.

Among Semiconductor ETFs, SPDR S&P Semiconductor (XSD) is up 0.04%, while Semiconductor Sector Index Fund (SOXX) is now up 0.19%.

SPDR S&P International Technology Sector ETF (IPK) is down 0.42% but still at high end of 52 week range.

In sector news, Geospace Technologies (GEOS) is now down 4.5%, paring earlier losses. The company reported Q4 EPS of $0.33 on revenues of $36.9 mln. Analysts polled by Capital IQ were expecting EPS of $0.64 on revenues of $46.53 mln. This compares to the prior-year period's EPS of $0.28 on revenues of $32.8 mln, and the prior quarter's EPS of $0.84 on revenues of $55.2 mln. The company attributed the sequential decline in its earnings and revenues to its erratic order flow and the timing of shipments which is dictated by its customers.

Energy -

Dow Jones U.S. Energy Fund (IYE) is up 1.1% and Energy Select Sector SPDR (XLE) is up 1.2%.

In sector news, Cobalt International Energy, Inc. (CIE) is down 6.4% after it announced today that it has priced its registered underwritten public offering of $1,200,000,000 aggregate principal amount of its 2.625% convertible senior notes due 2019. The conversion rate will initially be 28.0230 shares of common stock per $1,000 principal amount of the notes, subject to customary adjustments.

Commodities -

Crude was up 1.08%; likewise, natural gas was up 0.35%. United States Oil Fund (USO) is up 1.5%. But United States Natural Gas Fund (UNG) has turned down and is now 0.7% lower.

Gold was up 0.29%; silver was up 0.84%. Among rare metal funds, SPDR Gold Trust (GLD) is up 0.6%; iShares Silver Trust (SLV) is up 2.2%.

Consumer -

Consumer ETFs: Consumer Staples Select Sector SPDR (XLP), now up 0.24% and near 52 week highs; iShares Dow Jones US Consumer Goods (IYK), up 0.03%, at year highs; and Vanguard Consumer Staples ETF (VDC), now up 0.2% and nearer to 52 week highs.

Retail ETFs are weaker: SPDR S&P Retail (XRT), down 0.14%; PowerShares Dynamic Retail (PMR), down 0.35%; and Market Vectors Retail ETF (RTH), down 0.02% having earlier touched a new year high of $45.09.

In sector news, Central Garden & Pet (CENTA) is down 13% after the company reported a Q4 loss of $0.21 per share, in line with the Capital IQ consensus. Revenues were $397.2 mln, versus the analyst estimate of $373.53 mln.

Power Play -

Healthcare -

Healthcare ETFs are mostly higher: Health Care SPDR (XLV), up 0.4%, near year highs; Vanguard Health Care ETF (VHT), up 0.2%; and iShares Dow Jones US Healthcare (IYH), up 0.4% to near 52 week highs. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is down 0.2%.

In corporate news, YM BioSciences (YMI) is up near 80% and reached a new 52-week high of $2.92 after the company and Gilead Sciences (GILD) announced a definitive agreement under which Gilead will acquire YMI for U.S.$2.95 per share in cash. The transaction has received the unanimous approval of YM's Board of Directors, and values YM at approximately U.S.$510 million, with YM reporting C$125.5 million in cash and cash equivalents as of September 30, 2012. Gilead plans to fund the acquisition with cash on hand. The transaction is expected to close in the first quarter of 2013. GILD shares are up 0.2% and also touched a new year high of $77.12.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Commodities

Referenced Stocks: EEM, EWJ, IWM, SPY, XLF



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