Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 (
Financial Select Sector SPDR (
iPath S&P 500 VIX Short Term Futures (
): -4%, hit new year lows
PowerShares QQQ Trust, Series 1 (
iShares Russell 2000 Index (
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and
others, are mostly firmer. Actively traded PowerShares QQQ (
) is up 0.4%.
U.S. stocks are mixed after Federal Reserve Chairman Ben
Bernanke once again dashed hopes of further quantitative easing -
at least in the short term - in his testimony before the Senate
Banking Committee. Mixed economic data offered no concrete support,
with U.S. consumer prices unchanged in June, and core prices rising
a seasonally adjusted 0.2%; June industrial production inched up
0.4%; and the July home builders' index climbed 6 points to 35, the
highest level since March 2007.
Winners and Losers
Select Financial Sector SPDRs (
) is up 0.3%. Direxion Daily Financial Bull 3X shares (FAS) is up
1.4%. Its bearish counterpart, FAZ, is down 1.4%.
Actives in the sector are firmer: Bank of America (BAC), up 1%;
Goldman Sachs (GS), up 1.2%; Morgan Stanley (MS), down 0.4%; and
Citigroup (C), up 0.9%.
Goldman Sachs (GS) reported Q2 EPS of $1.78, blowing past
estimates for $1.17. Revenue for the quarter came in at $6.63
billion, ahead of the $6.28 billion consensus.
Comerica (CMA) is up 3% after it posted Q2 EPS of $0.73,
comfortably beating estimates for $0.62.
State Street Corp. (STT) is down near 6% after posting Q2 EPS of
$1.01, topping the Street view for $0.98. Revenue for the quarter
came in at $2.42 billion, in-line with expectations. Separately,
the company has agreed to acquire Goldman Sachs Administration
Services from The Goldman Sachs Group, Inc. (GS) in a cash
transaction with a total purchase price of $550 million, subject to
Tech actives are mostly in the green: Apple (AAPL), up 0.3%;
Microsoft (MSFT), up 0.7%; Intel (INTC), up 1.4%; Google (GOOG), up
0.6%; Cisco (CSCO), down 0.3%; and Yahoo (YHOO), down 0.03%.
Alcatel Lucent (ALU) is down 18% and hit new year lows after the
company warned that it expects adjusted operating loss in Q2 of
around EUR 40 mln or $48.71 mln, with revenues above EUR 3.5 bln or
$4.26 bln. Analysts polled by Capital IQ were expecting revenues to
be EUR 3.6 bln or $4.38 bln. The company also expects the second
half of 2012 to be better than the first half, but due to its
year-to-date performance and the difficult macro-economic
environment, it will not be able to achieve its previously
announced adjusted operating margin guidance for the full-year
Regulators from the European Union are investigating Microsfot
(MSFT) to determine whether or not the company is complying with a
2009 ruling that ordered it to offer users a choice of web
browsers, according to Reuters. The Reuters report cited the EU's
antitrust chief, Joaquin Almunia, who said he had trusted
Microsoft's compliance reports to be accurate, but that this does
not seem to be case. Almunia also said that should infringement be
confirmed following the investigation, Microsoft would be imposed
with sanctions, the report stated.
ETFs in the space are mixed: iShares Dow Jones US Technology ETF
(IYW), up 0.3%; iShares S&P North American Technology ETF
(IGM), down 0.9% and iShares S&P North American
Technology-Software Index (IGV), up 0.2%; Technology Select Sector
SPDR ETF (XLK), up 0.5%.
SPDR S&P Semiconductor (XSD) is down 0.5%; Semiconductor
Sector Index Fund (SOXX), down 0.4%.
SPDR S&P International Technology Sector ETF (IPK) is
Vanguard Industrials (VIS) is up 0.4%; iShares Trust Dow Jones
U.S. Industrial Sector Index Fund (IYJ), up 0.1%; and Select Sector
SPDR-Industrial (XLI), up 0.14%.
Mosaic (MOS) is up more than 5% after the company reported Q2
EPS of $1.26, topping estimates for $1.16. Revenue for the quarter
came in at $2.82 billion, ahead of the $2.54 billion consensus.
Mosaic's Board of Directors approved an annual dividend program of
$1.00 per share. This program increases the annual targeted
dividend 100% from the current level of $0.50 per share, and 400
percent from the year-ago level.
MOS and other fertilizer stocks are gapping up following the
USDA's weekly crop progress report which indicated the continued
deterioration of the U.S. corn crop, driving corn futures prices
Among fertilizer stocks, Potash Corp./Saskatchewan (POT) is up
2.8%; Rentech (RTK), up 0.5%; CF Industries Holdings (CF), up 2.9%
and has hit new year highs; Agrium (AGU), up 1.3% to near year
highs; Terra Nitrogen (TNH), up near 6%; and Rentech Nitrogen
Partners (RNF), up 1.5% and hit new year highs.
Dow Jones U.S. Energy Fund (IYE) is up 0.9%; Energy Select
Sector SPDR (XLE) is up 0.9%.
Lime Energy (LIME) is down 45% to $1.12, above a 52-week low of
$0.83 touched earlier in the session, after it announced that an
internal review found that a portion of the company's revenue was
improperly recorded. The company believes that the cumulative
adjustment to revenue for the affected financial statements will
not exceed $15 million, however, the exact impact will be known
following more investigation into the matter.The company added that
it expects the discrepancy will result in a restatement of its
Chevron (CVX) is up 0.05% after saying last night it expects its
Q2 earnings to be higher than the $3.27 a share profit reported in
Q1. The energy giant said downstream earnings during Q2 should be
significantly higher than previously thought, thanks to improved
refining margins and gains on asset sales. That will help offset
reduced upstream results, which has been nicked by falling crude
oil prices. Analysts polled by Capital IQ have been expecting EPS
Nabors Industries (NBR) has reversed earlier losses of about 4%
and is now up more than 4% after the company said that it expects
its second quarter operating results to be below consensus
estimates. The company said operating income could be in the range
of $220 million - $230 million.
Crude was down around 0.2% while United States Oil Fund (USO) is
up near the same level.
Gold was down around 0.4%; likewise, silver was down near 24%.
Among rare metal funds, SPDR Gold Trust (GLD) was slightly down and
iShares Silver Trust (SLV) was slightly up.
Corn futures have trimmed earlier gains of 5% but are still
higher, nearer the year high of $78.90 following the USDA's weekly
crop progress report yesterday. The Teucrium Corn Fund (CORN) is up
The USDA said that U.S. corn crop condition has deteriorated as
the country is hit by the worst drought since 1956. Corn in good or
excellent condition fell to 31%, down from 77% on May 21.
Health Care SPDR (XLV) is up more than 1% and hit new year
highs; iShares NASDAQ Biotechnology Index (IBB) is also up 1% and
near year highs. Vanguard Health Care ETF (VHT), up 1% and hit new
year highs and iShares Dow Jones US Healthcare (IYH), up 1% and
also at new year highs.
Johnson & Johnson (JNJ) has hit new year highs after it
reported Q2 earnings of $1.30 per share, ex one-time items, versus
the Capital IQ consensus of $1.29. Revenues were $16.48 bln, versus
the analyst estimate of $16.72 bln. The company lowered its FY12
EPS guidance, now expecting $5.00 - $5.07 EPS, down from $5.00 -
$5.17. Analysts are looking for $5.13 EPS.
Power Play -
ETFs are firmer in the space: Consumer Staples Select Sector
SPDR (XLP), up 0.6% and hit new year highs; iShares Dow Jones US
Consumer Goods (IYK), up 0.6%; and Vanguard Consumer Staples ETF
(VDC), 0.5% near year highs.
SPDR S&P Retail (XRT) is up 0.53%; PowerShares Dynamic
Retail (PMR), up 0.04%; and Market Vectors Retail ETF (RTH), up
The Coca-Cola Company (KO) is up 1.61% after reporting Q2 EPS of
$1.21, topping estimates for $1.19. Revenue for the quarter came in
at $13.08 billion, ahead of the $12.98 billion consensus. Shares
are up 0.4% at $76.80.
Mattel (MAT) is up 10% near year highs following its
better-than-expected Q2 results, with earnings of $0.28 per share,
versus the Capital IQ consensus of $0.21. Revenues were $1.158 bln,
versus the analyst estimate of $1.13 bln. In the same period last
year, the company reported EPS of $0.23 on revenues of $1.162