Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 (
SPY
): -0.14%
PowerShares QQQ Trust, Series 1 (
QQQ
): -0.6%
Financial Select Sector SPDR (
XLF
): +0.39%
iShares Russell 2000 Index (
IWM
): +0.1%
iPath S&P 500 VIX Short Term Futures (
VXX
): -0.8%
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and
others, are mixed. Actively traded PowerShares QQQ (
QQQ
) is down 0.6%.
U.S. stocks are vacillating between gains and losses as
investors digest economic news and earnings. New home sales fell
8.4%, to 350,000 from 369,000 and way under expectations. With
earnings, a close look reveals mixed results, with most companies
that have already reported beating EPS estimates, but only a few
topping revenue forecasts. Apple (AAPL), which had a record of
better-than-expected earnings, reported disappointing sales figures
for the iPhone, and continues to weigh on the tech sector.
Winners and Losers
Financial -
Select Financial Sector SPDRs (
XLF
) is up 0.39%. Direxion Daily Financial Bull 3X shares (FAS) is up
1.2%. Its bearish counterpart, FAZ, is down 1.1%.
Piper Jaffray Companies (PJC) is up 6% after it reported Q2
earnings of $0.37 per share, versus the Capital IQ consensus of
$0.30. Revenues were $113.1 mln, versus the analyst estimate of
$111.14 mln. The firm also announced that it is exiting the Hong
Kong market by Sept. 30, 2012 by shutting down or selling its
operations there. In either scenario, the firm expects to realize
net cash proceeds of $13 mln - $18 mln, primarily related to a U.S.
tax benefit. For Q2, business results for this operation are
reported as continuing operations. They will be reported as
discontinued operations in Q3.
NASDAQ (NDAQ) is up 6% after reporting Q2 EPS of $0.64, topping
estimates for $0.60. Revenue for the quarter came in at $413
million, ahead of the $407.21 million consensus. The company also
declared a regular quarterly dividend of $0.13 per share on its
outstanding common stock. The dividend is payable on September 28,
2012 to shareowners of record at the close of business on September
14, 2012.
Actives in the sector are firmer: Bank of America (BAC), up
0.9%; Goldman Sachs (GS), up 1.7%; Morgan Stanley (MS), up 2.4%;
and Citigroup (C), up 2.5%.
Technology -
Tech actives are mostly in the red: Apple (AAPL), down 4.3%;
Microsoft (MSFT), down 0.4%; Intel (INTC), up 1.3%; Google (GOOG),
up 0.5%; Cisco (CSCO), up 2.3%; and Yahoo (YHOO), up 0.9%.
Apple (AAPL) reported Q3 revenue of $35 bln, below the analyst
consensus of $37.3 bln on Capital IQ. EPS was $9.32, vs.
expectations of $10.40 per share. Apple sold 26.0 million iPhones
in the quarter, representing 28% unit growth over the year-ago
quarter. It sold 17.0 million iPads during the quarter, an 84% unit
increase over the year-ago quarter. The company sold 4.0 million
Macs during the quarter, a 2% unit increase over the year-ago
quarter. Apple sold 6.8 million iPods, a 10% unit decline from the
year-ago quarter. Apple's Board of Directors has declared a cash
dividend of $2.65 per share of the company's common stock. For Q4,
the company is guiding for revenue of about $34 bln and EPS of
$7.65 per share. The Street is at $38 bln in revenue and earnings
of $10.21 per share.
Symantec (SYMC) is up 13% after reporting Q1 revenue of $1.668
bln, better than the analyst consensus of $1.647 bln on Capital IQ.
EPS was $0.43, vs. expectations of $0.38 per share. For Q2, the
company expects revenue of $1.635 to $1.665 bln and EPS of $0.35 to
$0.39. The Street view is $1.685 bln in revenue and earnings of
$0.40 per share.
ETFs in the space are mixed: iShares Dow Jones US Technology ETF
(IYW), down 0.4%; iShares S&P North American Technology ETF
(IGM), up 0.17%; iShares S&P North American Technology-Software
Index (IGV), up 1% and Technology Select Sector SPDR ETF (XLK),
down 0.2%.
SPDR S&P Semiconductor (XSD) is up 3.1% while Semiconductor
Sector Index Fund (SOXX) is up 2.9%.
SPDR S&P International Technology Sector ETF (IPK) is
flat.
Industrial -
ETFs are seeing weakness at mid-day: Vanguard Industrials (VIS),
down 0.02%; iShares Trust Dow Jones U.S. Industrial Sector Index
Fund (IYJ), down 0.11%; and Select Sector SPDR-Industrial (XLI)
down 0.1%.
Caterpillar (CAT) has turned positive after reporting Q2 EPS of
$2.54, vs. the analyst consensus of $2.30 per share on Capital IQ.
Sales were $17.37 bln, vs. expectations of $17.14 bln. The sales
and revenues outlook range for 2012 is now $68 to $70 billion with
profit of about $9.60 per share at the middle of the sales and
revenues outlook range. The previous outlook for sales and revenues
was a range of $68 to $72 billion with profit of about $9.50 per
share at the middle of the sales and revenues outlook range. The
Street view is $69.4 bln in sales and revenue and EPS of $9.55.
Boeing (BA) is up 2.4% after posting Q2 EPS of $1.27,
comfortably beating estimates for $1.12. Revenue for the quarter
came in at $20.0 billion, topping the $19.37 billion consensus.
Energy -
Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR
(XLE) have both turned positive.
Hess (HES) is up 3.5% after it today reported Q2 earnings of
$1.61 per share, versus the Capital IQ consensus of $1.41. Revenues
were $9.31 bln, versus the analyst estimate of $8.82 mln. The
company also reported that oil and gas production increased to
429,000 barrels of oil equivalent per day, up from 372,000 in the
same quarter last year. Oil and gas production from the Bakken
increased to 55,000 barrels of oil equivalent per day, up from
25,000 year-over-year.
Commodities -
Crude was down near 1.5%; natural gas was down around 3.5%.
Among ETFs, United States Oil Fund (USO) was down 1%; United States
Natural Gas Fund (UNG) is down 2.5%.
Gold was up around 1.71% while silver was up 1.7%. Among rare
metal funds, SPDR Gold Trust (GLD) is up 1.39%; iShares Silver
Trust (SLV) was up 1.3%.
Consumer -
ETFs are lower: Consumer Staples Select Sector SPDR (XLP) has
turned positive; Dow Jones US Consumer Goods (IYK), down 0.1%; and
Vanguard Consumer Staples ETF (VDC) +0.1%.
SPDR S&P Retail (XRT) is down 0.8%; PowerShares Dynamic
Retail (PMR), is down 0.1% and Market Vectors Retail ETF (RTH),
flat.
RadioShack (RSH) is down 30% and has hit year lows after it
reported a Q2 loss of $0.21 per share, ex one-time items, versus
the Capital IQ consensus of $0.04 EPS. Revenues were $953.2 mln,
versus the analyst estimate of $971.53 mln. In the same period last
year, the company reported EPS of $0.21 on revenues of $941.9 mln.
Comparable store sales were essentially flat, while mobility
platform sales increased 3.3% at U.S. company-operated stores.
PepsiCo (PEP) is up 2% to near year highs. Earlier, the company
reported Q2 earnings of $1.12 per share, ex one-time items, versus
the Capital IQ consensus of $1.09. Revenues were $16.46 bln, versus
the analyst estimate of $16.68 bln. The company reaffirms its
guidance for FY12, and continues to see EPS decline of 5% YoY to
$4.18, excluding non-recurring items, versus the consensus of
$4.10.
Ford (F) is down 1% and has hit year lows following its Q2
earnings report. The company posted net EPS of $0.26 cents, down
from $0.59 cents during the same period a year ago. Adjusted EPS
was $0.30 per share. Revenue came in at $33.3 billion. The Street
was looking for EPS of $0.28 on revenue of $32.17 billion. The
company's outlook for full year North America 2012 profits remains
unchanged. Ford said it expects significantly higher pre-tax
operating profit and margin compared with 2011, as consumers
continue to respond to the company's product line-up, including the
recently-launched all-new Escape and the all-new Fusion launching
in the second half of this year. Ford also remains committed to
maintaining its competitive cost structure in North America. The
company expects its total full year pre-tax operating profit to be
strong, but lower than 2011.
Power Play -
Healthcare -
ETFs in the sector are mostly higher: Health Care SPDR (XLV), up
0.2%; iShares NASDAQ Biotechnology Index (IBB), up 1.5% and
Vanguard Health Care ETF (VHT), up 0.2%. iShares Dow Jones US
Healthcare (IYH) has turned positive.
Sunshine Heart (SSH) is up 20% at $12.10, after earlier touching
$13.69 as the company announced that it received CE Mark approval
for its C-Pulse Heart Assist System for the treatment of Class III
and ambulatory Class IV heart failure. This will allow for
commercialization of the technology in Europe and countries in Asia
and Latin America that recognize the CE Mark. The Class III heart
failure population is estimated at 3.7 million patients in the
European Union, and currently, there are limited, and often,
unsuccessful treatment options for this patient population
Bristol Myers Squibb (BMY) is inching higher, up 0.5% after it
reported Q2 earnings of $0.48 per share, ex one-time items, versus
the Capital IQ consensus of $0.48. Revenues were $4.44 bln, versus
the analyst estimate of $4.43 bln. The company reaffirms its
guidance for FY12, expecting non-GAAP EPS of $1.90 - $2.00, which
includes the expected negative impact of $0.03 per share related to
the acquisition of Amylin (AMLN) and the new collaboration
agreement with AstraZeneca (AZN). Analysts are looking for EPS of
$1.93.
Eli Lilly & Co. (LLY) is up 3% after it today reported Q2
earnings of $0.83 per share, ex one-time items, versus the Capital
IQ consensus of $0.76. Revenues were $5.6 bln, versus the analyst
estimate of $5.57 bln. The company now sees EPS of $3.30 - $3.40,
excluding non-recurring items, up from the prior outlook of $3.15 -
$3.30. Revenues are still expected to be $21.8 bln - $22.8 bln.
Analysts are looking for $3.27 EPS on revenues of $22.66 bln.