Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 (
iShares Russell 2000 Index (
PowerShares QQQ Trust, Series 1 (
iShares MSCI Emerging Markets Index (
iPath S&P 500 VIX Short Term Futures TM (
): -2.2%, close to year lows
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and
others, are mixed to modestly firmer. Actively traded PowerShares
) is down 0.1%.
U.S. stocks have recouped earlier losses, now firmer and aiming
for a fourth day in positive territory. Market sentiment brightened
as the Federal Reserve got ready to buy long-dated Treasury
securities as part of its stimulus plan, extending average maturity
of the U.S. government debt. Earlier, stocks were pressured by
renewed concerns over a global economic slowdown following
lackluster U.S. economic data and downbeat Chinese inflation
Winners and Losers
Select Financial Sector SPDRs (XLF) is up 0.2%. Direxion Daily
Financial Bull 3X shares (FAS) is up 0.4%. Its bearish counterpart,
FAZ, is down 0.3%.
In corporate news, Global Cash Access Holdings (GCA) is up near
13% after it reported Q2 EPS of $0.23, above the Capital IQ
consensus of $0.20. Revenues were $147.5 mln, missing the consensus
of $151.96 mln. The company also reaffirms its guidance for FY12,
now seeing EPS of $0.76 - $0.82, in line with the Street view of
Morgan Stanley (MS) is up 0.4% after it announced earlier that
it is considering closing brokerage offices, laying off support
staff and requiring some branch managers also to generate revenue
as advisers under a cost-cutting drive, Reuters reports, citing
three people briefed on internal discussions.
ETFs are leaning higher in the tech sector: Technology Select
Sector SPDR ETF (XLK), up 0.1% near year highs; iShares Dow Jones
US Technology ETF (IYW), up 0.05%; iShares S&P North American
Technology ETF (IGM), flat; and iShares S&P North American
Technology-Software Index (IGV), flat.
SPDR S&P Semiconductor (XSD) has turned negative and
Semiconductor Sector Index Fund (SOXX) is up 0.1%.
SPDR S&P International Technology Sector ETF (IPK) is
In corporate earnings news, Hewlett-Packard (HPQ) shares are up
near 3% after the company lifted its FQ3 non-GAAP earnings per
share (EPS) outlook to $1.00 per share, up from a previous range of
$0.94 to $0.97. Analysts are expecting $0.97.
Computer Sciences (CSC) is up 17% after the IT company reported
Q1 EPS of $0.26, above estimates of $0.22. Revenues for the quarter
came in at $3.9 bln, ahead of estimates of $3.8 bln.
Rackspace Hosting (RAX) is up 9% after it posted Q2 earnings of
$0.18 per share, below the Capital IQ consensus of $0.19. Revenues
were $319 mln, better than the analyst estimate of $318.15 mln. In
the same period last year, the company reported EPS of $0.13 on
revenues of $247.2 mln.
Express Scripts Holding (ESRX) is up 8% after reaching a new
year high of $60.85. The company reported late yesterday Q2
adjusted EPS of $0.88, vs. the analyst consensus of $0.82 per
share. Revenue was $27.6 bln, vs. expectations of $26.5 bln. For
2012, the company expects EPS in the range of $3.60 to $3.75, vs.
expectations of $3.54 per share.
EZchip Semiconductor (EZCH) extends its losses into the mid-day,
now down 24% and closer to year lows after reporting that Q2 sales
fell 9% to $15.8 million from a year ago. Non-GAAP EPS fell to
$0.29 from $0.33 a year earlier.
ETFs are mixed: Vanguard Industrials (VIS), down 0.18%; iShares
Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ), 0.09%; and
Select Sector SPDR-Industrial (XLI), down 0.22%.
MEMC Electronic Materials (WFR) is up 17.96%, paring down its
earlier gains of about 39%. It reported Q2 non-GAAP revenue of
$933.4 mln and non-GAAP EPS of $0.14. GAAP revenue was $808.4 mln
and GAAP EPS loss was $0.27 per share. The analyst consensus is
$748 mln in revenue and a loss of $0.02 per share. It's unclear
which earnings number is comparable.
Rio Tinto (RIO) is up 3.13% after MarketWatch reported the
company continues to look at ways to exit some of its aluminum
assets and its diamonds business and has had interest from
potential buyers in individual operations as well as
Dow Jones U.S. Energy Fund (IYE) is up 0.41% while Energy Select
Sector SPDR (XLE) is up 0.39%.
Among stocks, Petroleo Brasileiro S.A. (PBR) is up 4.74% on
reports that fuel prices are expected to increase in its home
country, StreetInsider said. Brazilian Energy Minister Edison Lobao
said the country needs to raise gas prices, hinting that an
increase might happen in 2012, though no specific date was given.
Petrobras, a state-controlled energy company, raised gasoline and
diesel prices recently to offset some refining costs as well as
raise funds to boost investment in domestic oil production.
HollyFrontier (HFC) is up 0.41% after the company reported that
its Q2 EPS was $2.39, versus the Capital IQ estimate of $2.32.
Revenues were $4.81 bln, versus the consensus of $5.09 bln.
NRG Energy (NRG) is steady higher, up 2.15% after reporting Q2
earnings of $1.08 per share, including a tax liability reversal.
This may not be comparable to the Capital IQ consensusof $0.28. In
the prior-year period, the company posted EPS of $2.53. Revenues
fell 4.9% to $2.17 bln from $2.28 bln, and below the $2.68 bln
Crude was up around 0.4%. United States Oil Fund (USO) is up
0.57%. Natural gas was down 1%. United States Natural Gas Fund
(UNG) is down 1.13%.
Gold was up 0.16%; likewise, silver was down 0.43%. Among rare
metal funds, SPDR Gold Trust (GLD) is up 0.06% and iShares Silver
Trust (SLV) is down 0.29%.
Healthcare and biotechnology ETFs are in the mostly in the
green: Health Care SPDR (XLV), up 0.34%; iShares NASDAQ
Biotechnology Index (IBB), down 0.53%; Vanguard Health Care ETF
(VHT), up 0.13%; and iShares Dow Jones US Healthcare (IYH), up
Warner Chilcott (WCRX) is down 5.8% at $16.50 following the
company's announcement late yesterday that it is no longer seeking
Given Imaging (GIVN) is down 11.6%, trimming earlier losses of
more than 18%, after reporting Q2 revenues of $44.5 million
compared to $44.8 million in the second quarter of 2011. Ex-items,
Q2 revenues were $46 million. Net income for the period was $4.9
million, or $0.16 per share on a fully diluted basis, compared to
$4.1 million, or $0.13 per share on a fully diluted basis, in the
Q2 2011. Analysts expected Given to bank $48.5 million for the
period, and EPS of $0.18. As a result of ongoing economic weakness
in Europe, the company lowered its FY 2012 revenue guidance from
$190 - $200 million to $185 - $190 million. Despite lowering
top-line guidance, the company believes its earnings per share
guidance will remain unchanged, between $0.70 and $0.80 on a
non-GAAP basis. However, the company expects that 2012 earnings per
share will be closer to the lower range of the guidance.
Power Play -
ETFs are now firmer: Consumer Staples Select Sector SPDR (XLP),
up 0.53%; iShares Dow Jones US Consumer Goods (IYK), up 0.11%; and
Vanguard Consumer Staples ETF (VDC), 0.34%.
SPDR S&P Retail (XRT) is up 0.15%; PowerShares Dynamic
Retail (PMR), 0.24%; and Market Vectors Retail ETF (RTH), up
Macy's (M) is up 2.84% after it posted Q2 earnings of $0.67 per
share, ex one-time items, versus an analyst consensus of $0.65.
Revenues were $6.12 bln, versus the analyst estimate of $6.10 bln.
In the same period last year, the company reported EPS of $0.55 on
revenues of $5.94 bln. Macy's also raised its earnings guidance for
FY12 to $3.30 - $3.35, up from its previous guidance of $3.25 to
$3.30. Consensus estimates are at $3.36.
McDonald's (MCD) is down 1.46% after it reported global comp
store sales were flat in July, as the promotional activity did not
offset the effects of the sluggish economy and last year's launch
of the Mango Pineapple smoothie, the company said in a
Dean Foods (DF) continues to gain into the mid-day, now up
36.43%, with session highs nearing its 52-week high of $17.25. The
company earlier reported Q2 adjusted EPS of $0.36, vs. the analyst
consensus of $0.31 per share. Sales were $3.12 bln, vs. the Street
view of $3.22 bln, according to Capital IQ. For Q3, EPS is targeted
at $0.25 to $0.30, vs. expectations of $0.25 per share. For the
full year, EPS is seen at $1.18 to $1.28, vs. expectations of $1.18
Ralph Lauren (RL) is down 2.42% after it reported Q1 revenue of
$1.6 bln, up 4% and ahead of the analyst consensus of $1.58 bln on
Capital IQ. EPS was $2.03, up 7% and better than expectations of
$1.79 per share. The company continues to expect consolidated net
revenues for Fiscal 2013 to increase by a mid-single-digit
percentage. In the second quarter of Fiscal 2013, the company
expects consolidated net revenues to decline by a mid-single-digit
percentage, as a low-double-digit decline in wholesale revenues is
partially offset by a mid-single-digit increase in retail
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