Referenced Stocks

Mid-Day ETF Update: ETFs Lower, Stocks Mixed as Upbeat U.S. Econ Data, Concerns Over Greece Vye for Market Attention

By Midnight Trader May 24, 2012, 01:09:57 PM EDT

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

SPDR S&P 500 ( SPY ): -0.1%

Financial Select Sector SPDR ( XLF ): -0.4%

iShares MSCI Emerging Markets Index ( EEM ): -0.72%

iPath S&P 500 VIX Short Term Futures ( VXX ): +2.6%

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.5%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are lower. Actively traded PowerShares QQQ ( QQQ ) is down 0.5%.

U.S. stocks are moving between postive and negative territories, on the one hand getting support from upbeat U.S. economic data, with jobless claims falling by 2,000 last week to 370,000, and durable goods in April seeing a rise of 0.2% in orders; on the other, stocks feel pressure from worries over Greece's new elections next month and how this will affect the EU debt crisis. This appears to be weighing on banks.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) is down 0.4%. Direxion Daily Financial Bull 3X shares (FAS) is down 1%. Its bearish counterpart, FAZ, is up 1%.

Among actives: Bank of America (BAC) was up but is now down 1.1%%, Goldman Sachs (GS) was up slightly but is now down 1.5%, Morgan Stanley (MS) is down 0.8%, Citigroup (C) is down 2%.

Citibank (C) is selling a 404 million share stake in Turkey's Akbank, valued at $1.27 billion, Bloomberg reports.

Knight Capital (KCG) is down 0.2% after the company said it expects at least $30 million in trading losses on Facebook (FB) shares during its first day on the market last week. KCG also expects the anticipated losses will hurt its Q2 results, according to a regulatory filing last night.

Technology -

Among tech actives: Apple (AAPL) is down 0.3%; Microsoft (MSFT) is down 0.1%; Intel (INTC) is up 0.9%; Google (GOOG) is down 1%; Cisco (CSCO) is down 0.9%; Yahoo (YHOO) is little changed.

Pandora Media (P) is up 14% at $11.80 but off a day high $12.30 after the Internet radio firm reported a $0.12 a share net loss that was narrower than the $0.20 a share loss forecast by most analysts. Sales also topped Wall Street expectations. P raised its FY12 revenue outlook to a new range of $420 million to $427 million, up from $410 million to $420 million in its previous forecast. It also expects to narrow its non-GAAP net loss to $0.07 to $0.11 per share, down from a $0.11 to $0.16 loss. Analysts expected the company to report a $0.17 net loss, ex items, on $415.87 million in revenue, according to a consensus estimate from Thomson Reuters.

Hewlett-Packard Co. (HPQ) is up 2.4%, paring down earlier gains of some 7%, after announcing plans to lay off 27,000 workers, or about 8% of its workforce, in a cost-cutting move. The company also reported Q2 profit of $1.6 billion, or $0.80 a share, down from $1.05 a share in the year-earlier period. Revenue slid 2.8% year over year to $30.7 billion. Adjusted profit, excluding certain items, was $0.98 a share. Analysts were expecting earnings of $0.91 a share on $29.9 billion in revenues, according to a consensus survey by FactSet Research.

On the downside, NetApp (NTAP) is down 14% at around $28.20, after sinking to a new 52-week low of $27.79. The company earlier released revenue guidance of $1.4 to $1.5 billion versus estimates of $1.61 billion.

In the ETF space, iShares Dow Jones US Technology ETF (IYW) is down 1%; Technology Select Sector SPDR ETF (XLK) is down 0.64%; and iShares S&P North American Technology ETF (IGM) is down 0.91%. iShares S&P North American Technology-Software Index (IGV) is down 1.4%.

SPDR S&P Semiconductor (XSD) is down 1% and Semiconductor Sector Index Fund (SOXX) is down 1.1%.

SPDR S&P International Technology Sector ETF (IPK) is down 0.13%.

Energy -

Dow Jones U.S. Energy Fund (IYE) is down 0.6% while Energy Select Sector SPDR (XLE) is down 0.6%.

Bristow Group (BRS) is down 3% after edging higher in Wednesday's after-hours trading. The specialty oilfield services company reported Q4 earnings of $1.22 per share, ex one-time items, on $358.4 million in revenue. Analysts, on average, were expecting a $1.00 a share gain on $326.44 million in sales. Looking forward, BRS sees FY12 adjusted earnings in a range of $3.25 to $3.55 a share, also beating the analyst consensus, according to Capital IQ. The company also increased its dividend 33% to $0.20 a share, up from $0.15 previously and payable June 15 to stockholders of record on June 5.

Commodities -

Crude is up $1.27 or 1.41% at $91.16 a barrel. United States Oil Fund (USO) is up 0.88% at $34.90. Natural gas is down 1.14% at $2.76. United States Natural Gas Fund (UNG) is down 1.03%.

Gold is up $17.70 at $1,566.10 an ounce. SPDR Gold Trust (GLD) is up 0.34% at $152.14. Silver is up 2.58% at $28.23 a pound. iShares Silver Trust (SLV) is up 1.48% at $27.45.

Healthcare -

Health Care SPDR (XLV) is up 0.29%; iShares NASDAQ Biotechnology Index (IBB) is up 0.19%; Vanguard Health Care ETF (VHT) is up 0.34% and iShares Dow Jones US Healthcare (IYH) up 0.86%.

Dynasil (DYSL) is up 21.53% at $1.64 a share, trimming earlier gains of nearly 50% after it announced that it has entered into a technology collaboration agreement with the Mayo Clinic. The first project under the agreement will focus on the development of a therapeutic hypothermia core cooling technology designed to protect the brain during cardiac arrest and traumatic brain injury. Separately, Dynasil and Mayo Clinic are working together on a blood storage technology designed to extend the shelf life of blood products.

MediciNova Inc (MNOV) continues to plunge, though it has trimmed losses slightly, now down 45.09% at $1.51 and just off the new year low of $1.29. The company said in yesterday's after hours session that its experimental asthma drug showed no improvement compared with a placebo during a recent Phase II clinical trial. The drug candidate, known as MN-221, is intended to treat acute asthma by bypassing constricted airways and delivering the drug directly into the lungs. It aims to increase the amount of air exhaled in the first second. The trial, however, reduced the number of hospital admissions when MN-221 was added to standard treatments, the company said in a statement. MNOV said it plans to continue development of the drug.

Johnson & Johnson (JNJ) is inching up 0.54%, reversing earlier losses of 0.66% after Xarelto, an oral anticoagulant developed by its company Janssen Research and Development, failed to get the approval of a U.S. Food and Drug Administration (FDA) Advisory Committee, according to a report by Reuters. The FDA Cardiovascular and Renal Drugs Advisory Committee voted against the approval of XARELTO or rivaroxaban to reduce the risk of secondary cardiovascular events in patients with Acute Coronary Syndrome in combination with standard antiplatelet therapy, the report said. The FDA advisers were concerned about missing data and bleeding risks, the report added. A final decision by the FDA is expected by the end of June.

Power Play

Consumer -

Consumer Staples Select Sector SPDR (XLP) is up 0.6%; iShares Dow Jones US Consumer Goods (IYK) is up 0.38%; and Vanguard Consumer Staples ETF (VDC) are lois up 0.66%. SPDR S&P Retail (XRT) is down 0.52%; PowerShares Dynamic Retail (PMR) is up 0.32% and Market Vectors Retail ETF (RTH) is up 0.34%.

Costco Wholesale (COST) is up 1.3% after reporting Q3 earnings of $0.88 per share, ex one-time items, versus the Capital IQ consensus of $0.87. Revenues were $22.32 mln, versus the analysts' estimate of $22.09 mln. Total comparable same store sales increased by 5% for the quarter.

PVH Corp. (PVH) is up 6.8%, adding to earlier gains of about 4%, after the company raised its profit outlook for the FY12, saying margin pressures should wane in the second half of the year. PVH now sees full-year adjusted earnings of between $6.15 to $6.25 a share, up from $6.10 to $6.20 in its previous call. For the current quarter, the company forecast adjusted EPS of $1.18 to $1.20 a share. Analysts on average are expecting a $1.18 a share profit in Q2 and $6.17 a share in FY12, according to Thomson Reuters. The Q1 results also topped expectations with PVH posting adjusted earnings of $1.30 a share on $1.43 billion in sales. Analysts, on average, predicted a $1.26 a share gain on $1.40 billion in revenues.

On the downside, Signet Jewelers (SIG) is down 11% after reporting Q1 EPS of $0.96, topping estimates for $0.91. Revenue for the quarter came in at $900 million, falling short of the $912.26 million consensus. The company says it sees Q2 EPS of $0.78-$0.84. The Street is at $0.89.

Tiffany & Co. (TIF) is also weaker, down 8% at $57 after touching a new 52-week low of $55.75. The company earlier reported Q1 EPS of $0.64, below the mean analyst estimate of $0.69 per share on Thomson Reuters. Sales were $819 mln, vs. expectations of $817 mln. For FY13, the company expects sales to increase 7% to 8%, vs. its previous guidance of 10% growth. EPS is seen in the range of $3.70 to $3.80 per share, down from its prior forecast of $3.95 to $4.05 per share. The company said that approximately $0.20 of the decrease is tied to a reduction in operating expectations and $0.05 is related to the additional debt incurrence. All of the annual earnings growth over 2011 is expected to occur in the fourth quarter, with net earnings in the second and third quarters expected to be below last year.




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, QQQ, SPY, VXX, XLF



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