Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 (
Financial Select Sector SPDR (
iShares MSCI Emerging Markets Index (
iShares Russell 2000 Index (
PowerShares QQQ Trust, Series 1 (
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and
others, are mixed. Actively traded PowerShares QQQ (
) is up 1.5%.
U.S. stocks have recouped earlier losses and are now trading
higher following comments from Fed chairman Ben Bernanke in his
second day testifying before the Senate Banking Committee. Bernanke
allayed fears of a double-dip, saying that the central bank was
ready to inject more stimulus into the economy, but was in no rush
to do so, as he does not expect the economy to slip back into a
Winners and Losers
Select Financial Sector SPDRs (
) is down 0.1%. Direxion Daily Financial Bull 3X shares (FAS) is
down 0.4%. Its bearish counterpart, FAZ, is up 0.5%.
Actives in the sector are mostly lower: Bank of America (BAC),
down 2.2%; Goldman Sachs (GS), down 0.86%; Morgan Stanley (MS),
down 1.5%; and Citigroup (C), down 0.1%.
Flagstar Bancorp (FBC) has turned negative after earlier hitting
a day high $1.09. The company reported that it has returned to
profitability in Q2, with earnings of $0.15 per share, above the
single analyst estimate of $0.02, according to Capital IQ. In the
prior quarter, the bank posted a loss of $0.02 per share while in
the same quarter last year, it posted $0.14 loss per share.
U.S. Bancorp (USB) is up near year highs after it reported Q2
earnings of $0.71 per share, versus the Capital IQ consensus of
$0.70. Total net revenue on a taxable-equivalent basis was $5.07
bln, versus the analyst estimate of $4.98 bln. In the same period
last year, the bank reported EPS of $0.60 on $4.69 bln.
Bank of America (BAC) posted FQ1 EPS of $0.19, topping estimates
for $0.14. Revenue for the quarter came in at $22.2 billion, just
short of the $22.87 billion consensus.
Tech actives: Apple (AAPL), turns negative; Microsoft (MSFT), up
2.2%; Intel (INTC), up 3.9%; Google (GOOG), up 1%; Cisco (CSCO), up
2.8%; and Yahoo (YHOO), up 0.32%.
A.O. Smith (AOS) hit year highs after it posted Q2 EPS of $0.75,
comfortably beating estimates for $0.67. Revenue for the quarter
came in at $484.2 million, ahead of the $475.25 million consensus.
The company says it now sees FY2012 EPS of $2.80-$2.90, versus
prior guidance of $2.75-$2.90 and the consensus of $2.88.
VMware (VMW) continues to trade higher, now up near 12% after it
reported in yesterday's after hours session preliminary Q2 revenue
of about $1.123 bln, ahead of the analyst consensus of $1.113 bln
on Capital IQ. For the full year, the company expects revenue to be
between $4.54 bln and $4.635 bln, vs. expectations of $4.58 bln.
VMware also announced that Paul Maritz will be succeeded in the
post as Chief Executive Officer of VMware, effective September 1,
2012, by Pat Gelsinger, currently president and chief operating
officer, EMC Information Infrastructure Products.
ETFs in the space are gapping higher: iShares Dow Jones US
Technology ETF (IYW), up 2.1%; iShares S&P North American
Technology ETF (IGM), up 2.4%; iShares S&P North American
Technology-Software Index (IGV), up 2.8%; and Technology Select
Sector SPDR ETF (XLK) is up 1.8%.
SPDR S&P Semiconductor (XSD) is up 4.1%; Semiconductor
Sector Index Fund (SOXX), up 3.6%.
SPDR S&P International Technology Sector ETF (IPK) is down
Dow Jones U.S. Energy Fund (IYE) is up 0.7%; Energy Select
Sector SPDR (XLE) is up 0.7%.
Kosmos Energy's (KOS) Wawa-1 exploration well, drilled in the
Deepwater Tano Block offshore Ghana, has intersected oil and
gas-condensate in a Turonian-aged turbidite channel system. The
Wawa-1 well encountered 20 meters (65 feet) of gas-condensate pay
and 13 meters (42 feet) of oil pay in turbidite sands. Fluid
samples indicate the oil to be good quality, between 38 and 44
degrees API. Shares are up 3.2%.
Crude was up around 0.4% while natural gas was up 4%. United
States Oil Fund (USO) is up 0.8% while United States Natural Gas
Fund (UNG) is up more than 5%.
Gold was down around 0.82%; likewise, silver was down near
0.75%. Among rare metal funds, SPDR Gold Trust (GLD) is down 0.6%
while iShares Silver Trust (SLV) is around the same level.
ETFs in the space are mostly higher: Consumer Staples Select
Sector SPDR (XLP), up 0.03% near year highs; iShares Dow Jones US
Consumer Goods (IYK), up 0.4%; and Vanguard Consumer Staples ETF
(VDC), up 0.04% near year highs.
SPDR S&P Retail (XRT) was up around 1.5%; PowerShares
Dynamic Retail (PMR), was slightly lower; and Market Vectors Retail
ETF (RTH) has hit year highs.
Stanley Black & Decker (SWK) is up 5.5%, reversing earlier
losses of some 3%, after it reported Q2 earnings of $1.32 per
share, ex one-time items, compared with the prior-year period's
$1.46 per share. Revenues were $2.81 bln, up 8.1% from $2.6 bln in
the same quarter last year. Analysts polled by Capital IQ were
expecting EPS of $1.53 on revenues of $2.91 bln. The company
expects FY12 EPS of $5.40 - $5.65, down from the previous outlook
of $5.75 - $6.00. Analysts are looking for $5.78 in EPS. It
reaffirms its guidance that organic net sales should increase 1% -
2% from a 2011 pro forma revenue base of $11 bln.
Sally Beauty Holdings, Inc. (SBH) is down 6.8% after announcing
the underwritten public offering of 23,111,527 shares of its common
stock held by investment funds associated with Clayton, Dubilier
& Rice, LLC (the CDR Investors) pursuant to the company's shelf
registration statement filed with the Securities and Exchange
Commission. It is expected that the CDR Investors will no longer
hold any shares of common stock of the company after giving effect
to the offering.
Separately, Sally Beauty issued preliminary Q3 sales of about
$887 mln and adjusted EPS of $0.38 per share. The analyst consensus
is $900 mln in sales and earnings of $0.37, according to Capital
Power Play -
ETFs have traded higher throughout the session and most have hit
new year highs:
VIVUS (VVUS) is up 11% at $29.35, but well off a new year high
$31.21 hit earlier following its pre-market halt. Earlier, the
company announced that the U.S. Food and Drug (FDA) has approved
Qsymia as an adjunct to a reduced-calorie diet and increased
physical activity for chronic weight management in overweight adult
patients, or patients with an initial body mass index of 30 or
greater, or 27 or greater with at least one weight-related
comorbidity, such as hypertension, type 2 diabetes mellitus or high
Abbott Laboratories (ABT) is down 0.6% after earlier hitting
year highs. It reported Q2 earnings of $1.23 per share, ex one-time
items, versus the Capital IQ consensus of $1.22. Revenues were
$9.81 bln, versus the analyst estimate of $9.84 bln. The company
reaffirms its guidance for FY12, and continues to see EPS of $5.00
- $5.10, excluding non-recurring items, in line with the analyst
estimate of $5.04.
St. Jude Medical (STJ) is down more than 4% after it reported Q2
EPS of $0.88, beating estimates by a penny. Revenue for the quarter
came in at $1.4 billion, in-line with expectations.