Referenced Stocks

Mid-Day ETF Update: ETFs Mixed, Stocks Cheer Upbeat Consumer Data, Germany's Renewed Commitment to the Euro

By Midnight Trader August 17, 2012, 01:34:30 PM EDT

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

SPDR S&P 500 ( SPY ): +0.02%, reached a new year high

iShares MSCI Emerging Markets Index ( EEM ): -0.66%

iPath S&P 500 VIX Short Term Futures TM ( VXX ): -2.5%, close to its year low

iShares Russell 2000 Index ( IWM ): +0.6%

Financial Select Sector SPDR ( XLF ): +0.17%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are mixed. Actively traded PowerShares QQQ (QQQ) is up 0.29% to near year highs.

U.S. stocks are inching higher, buoyed by the report that the University of Michigan/Thomson Reuters Consumer Sentiment Index rose to 73.6 in August, topping analyst estimates of 72. Leading indicators also increased 0.4% in July, over consensus expectations of 0.2%. Market sentiment has also been brightened by comments from German Chancellor Angela Merkel, who reaffirmed that her nation is committed to preserving the euro.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) is up 0.1% but off a year high hit earlier; Direxion Daily Financial Bull 3X shares (FAS) is up 0.25%. Its bearish counterpart, FAZ, is down 0.15%.

In financial news, Life Partners Holdings (LPHI) is down 13.5%, sinking to a new 52-week low of $2.02, following a report on Bloomberg that the life insurance firm has been sued by Texas attorney general, Greg Abbott, for allegedly selling unregistered securities. Abbott has filed for a court order to bar the firm, its CEO Brian D. Pardo and president R. Scott Peden from selling the fraudulent securities, the report continued. Pardo has denied the allegations in a statement the company issued late Thursday.

Technology -

ETFs in the tech space are modestly firmer: Technology Select Sector SPDR ETF (XLK), up 0.36% and hit new year highs; iShares Dow Jones US Technology ETF (IYW), up 0.5%; iShares S&P North American Technology ETF (IGM), up 0.12%; and iShares S&P North American Technology-Software Index (IGV), up 0.61%.

Semiconductor ETFs, however, are weaker: SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) are lower, 0.3% and 0.9%, respectively.

SPDR S&P International Technology Sector ETF (IPK) is flat.

In tech news, Marvell Technology Group (MRVL) is down more than 10%, near the year low of $10.27 after it reported late Thursday Q2 earnings of $0.24 per share, down from a $0.38 profit last year and trailing the Capital IQ consensus by $0.02. Revenues fell 9.1% to $816.1 million - or nearly $37 below analyst expectations. The company also issued Q3 guidance during its earnings conference call, expecting earnings of $0.24 on revenues of between $800 mln to $850 mln, according to a report on Briefing.com. Analysts on Capital IQ are expecting EPS of $0.31 and $917.10 million in revenue.

On the upside, Apple (AAPL) is up 1.4% and jumped to a new 52-week high of $645.48, surpassing the previous record of $644 touched this April. Earlier today Jefferies raised their price target to $900 from $800.

Energy -

Dow Jones U.S. Energy Fund (IYE) is down 0.22% while Energy Select Sector SPDR (XLE) has lost small earlier gains and is now down 0.2%.

Among stocks, ION Geophysical Corp. (IO) is down more than 10% after a federal jury late yesterday decided against the oilfield services company, ordering it to pay $105.9 million after infringing patents owned by a Schlumberger Ltd. (SLB) subsidiary.

Commodities -

Crude was up 0.15%. Natural gas was down 0.47%. United States Oil Fund (USO) is up 0.9%; likewise, United States Natural Gas Fund (UNG) is up 0.5%.

Gold was down 0.12%; silver was also lower, down 0.8%. Among rare metal funds, SPDR Gold Trust (GLD) is up 0.1%; iShares Silver Trust (SLV) is down 0.6%.

Healthcare -

Healthcare and biotech ETFs are underperforming the broader market: Health Care SPDR (XLV), down 0.2%; iShares NASDAQ Biotechnology Index (IBB), down 0.5%; Vanguard Health Care ETF (VHT), down 0.6%; and iShares Dow Jones US Healthcare (IYH), down 0.5%.

Among stocks, Vivus (VVUS) continues to tick lower, now down 6% after catching a downgrade to Underperform from Hold at Jefferies. The firm slashed its price target on the stock, to $16.00 from $31.00. According to StreetInsider, the firm cited generic competition as the reason for the downgrade.

Power Play -

Consumer -

ETFs in the space are firmer in mid-day action: Consumer Staples Select Sector SPDR (XLP), now flat, near its 52-week high; iShares Dow Jones US Consumer Goods (IYK), up 0.24% and near year highs; and Vanguard Consumer Staples ETF (VDC), up 0.01% and also near year highs.

SPDR S&P Retail (XRT) is up 0.7%; PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) are also higher, up 0.24% and 0.39%, respectively.

Among retailers moving in reaction to earnings, Ann (ANN) is the top gainer, and continues to climb in mid-day action, now up more than 20%. Shares reached a new year high of $34.38. The retailer of women's apparel, shoes and accessories reported second quarter 2012 net earnings per diluted share of $0.63, compared to the consensus estimate of $0.51 per share earnings. Revenues were $594.9 mln, which is also above the $585.6 mln estimate. In the same period last year, net earnings per diluted share were $0.47 on revenues of $558.2 mln. The company has also increased its outlook for the full year 2012 with total net sales expected to approach $2.385 bln, reflecting a total company comparable sales increase in the mid-single digits.




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, IWM, SPY, VXX, XLF



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