Referenced Stocks

Mid-Day ETF Update: ETFs Mostly Lower; Stocks Vacillate Between Losses and Gains on Spain Financial Woes, Upbeat Homebuilders Data

By Midnight Trader June 18, 2012, 12:51:42 PM EDT

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

SPDR S&P 500 ( SPY ): +0.13%

iPath S&P 500 VIX Short Term Futures ( VXX ): -6.8%

Financial Select Sector SPDR ( XLF ): -0.42%

iShares Russell 2000 Index ( IWM ): 0.01%

iShares MSCI Emerging Markets Index ( EEM ): -0.05%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are mostly weaker. Actively traded PowerShares QQQ (QQQ) is up 0.7%.

U.S. stocks are churning between positive and negative territory at session's half, as worries over Spain's 10-year bonds - yields hit a record high of more than 7% - put a damper on the results from the Greek election. U.S. homebuilders' sentiment, which rose to its best level in five years this month, as well as expectations that the Federal Reserve will extend its Operation Twist Program, have helped keep losses in check.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) is down 0.45%. Direxion Daily Financial Bull 3X shares (FAS) is down 0.82%. Its bearish counterpart, FAZ, is up 1%.

Among actives: Bank of America (BAC) is down 1.4%, Goldman Sachs (GS) is down 2.2%, Morgan Stanley (MS) is down 3.1%, Citigroup (C) is down 1.9%.

JPMorgan Chase & Co. (JPM) is down 0.9% after the company made a capital increase of $250 million to its Mexican subsidiaries. The sum, funded to J.P. Morgan Grupo Financiero, S.A. de C.V., will allow the global financial institution to provide additional lending capital to its Mexican customers. The 62% capital increase brings the firm's total capital in Mexico to about $653 million. The additional capital planned for Banco J.P. Morgan, pending final regulatory approval, will allow it to increase its lending limits in the country and to provide its clients with more credit opportunities. J.P. Morgan Casa de Bolsa may also be funded with additional capital, which will allow it to increase its activities in the Mexican equity market.

Spanish banks are lower after a report showed that the amount of risky loans Spain's banks owned had hit 18-year highs. Banco Bilbao Vizcaya Argentaria SA (BBVA) is down 5.11% while Banco Santander, S.A. (SAN) is down 5.33%.

Industrial -

Vanguard Industrials (VIS) is down 0.05%; iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ) is up 0.01% and Select Sector SPDR-Industrial (XLI) is flat.

Extorre Gold Mines (XG) is much higher, up 54% after the company said it signed an agreement to be acquired by Yamana Gold (AUY) through a statutory plan of arrangement under the Canada Business Corporations Act. Under the terms of the agreement, each XG shareholder will receive in exchange for each XG share held, $3.50 in cash and 0.0467 of a common share of AUY. Each holder of an XG stock option shall be entitled to receive, upon the exercise of such options, AUY shares based upon a share exchange ratio of 0.2648 of an AUY share for each XG share which would have been issuable upon exercise of such options prior to the effective date of the arrangement. AUY shares are up 0.6%.

Energy -

Dow Jones U.S. Energy Fund (IYE) is down 1% while Energy Select Sector SPDR (XLE) is also down 1%.

ExxonMobil (XOM) is down 0.5% in mid-day trading. Last Friday, the company and Rosneft agreed to jointly develop tight oil reserves in Western Siberia and establish a joint Arctic Research Center for Offshore Developments.

Commodities -

Crude is down 0.88% at $83.29 a barrel. United States Oil Fund (USO) is down 0.73% at 31.40.

Gold is down $2.40 at $1,625.70 an ounce. SPDR Gold Trust (GLD) is down 0.04% at 157.78 Silver is down 0.12% at $28.71 a pound. iShares Silver Trust (SLV) is up 0.32% at 27.90.

Healthcare -

Health Care SPDR (XLV) is up 0.46%; iShares NASDAQ Biotechnology Index (IBB) is up 0.8%; Vanguard Health Care ETF (VHT) is up 0.3% and iShares Dow Jones US Healthcare (IYH) is up 0.3%.

Infinity Pharmaceuticals (INFI) is down more than 6% after the company said it will voluntary terminate its Phase 2, double-blind, randomized, placebo-controlled study of saridegib (IPI-926) in patients with metastatic or locally advanced, inoperable chondrosarcoma, after a planned futility analysis of the trial data, conducted by the study's independent Data Monitoring Committee, concluded that treatment with saridegib was similar to placebo and, therefore, the trial would not meet its primary endpoint. The primary endpoint of the Phase 2 study was progression-free survival.

Consumer -

Consumer Staples Select Sector SPDR (XLP) is up 0.15%; iShares Dow Jones US Consumer Goods (IYK) is down 0.01%; and Vanguard Consumer Staples ETF (VDC) is up 0.01%.

SPDR S&P Retail (XRT) is down 0.5%; PowerShares Dynamic Retail (PMR) is up 0.41%; and Market Vectors Retail ETF (RTH) is up 0.17%.

Body Central (BODY) is down near 50% and has hit a new 52-week low of $8.20 after saying it expects Q2 revenue in the range of $77 to $79 mln and EPS of $0.19 to $0.21 per share. The analyst consensus is $82 mln in revenue and earnings of $0.27 per share, according to Capital IQ. For the full fiscal year, the company now expects net revenues in the range of $323 million to $328 million, comparable sales to decrease in a range of 4% to 6% and diluted earnings per share in the range of $1.07 to $1.11. The Street is at $335 mln in revenue and earnings of $1.35 per share.

DSW (DSW) is down 11.5% after it revised its Q2 EPS outlook to $0.60 - $0.64, excluding any impact from the company's RVI merger and related items, due to due to a more normalized gross margin performance in the quarter and previously announced pre-opening costs associated with the acceleration in the company's store expansion. This is below the Capital IQ estimate consensus of $0.75 per share. The company also reaffirms FY12 adjusted EPS of $3.25 to $3.40, versus the Street estimate of $3.40.

Power Play -

Technology -

Among tech actives: Apple (AAPL) is up 1.52%; Microsoft (MSFT) is down 0.9%; Intel (INTC) is up 0.433%; Google (GOOG) is up 0.85%; Cisco (CSCO) is up 0.4%; Yahoo! (YHOO) is up 0.7%.

Yahoo! (YHOO) announced earlier that it has appointed appointed Michael Barrett as the company's new chief revenue officer. Barrett will be responsible for Yahoo's advertising revenue and operations globally for the company, with Americas, EMEA and APAC regional leads reporting to him.

Facebook (FB) is up 5.7% despite news that the company's chief technology officer, Bret Taylor, is leaving.

Microsoft (MSFT) is down 0.9% following a report on Techcrunch that the company and Barnes and Noble (BKS) will announce a new tablet today, which the Techcrunch report says may be the first non-Xbox device to gain Xbox Live streaming capabilities. The two companies announced a "strategic partnership" in late April with Microsoft investing $300 million into the joint business dubbed "Newco" for a 17.6% equity stake and Barnes and Noble owning 82.4%. BKS shares are up 0.71%.

Elster Group SE (ELT) is up 17.4% and has hit new year highs after the company confirmed that it is in discussions with Melrose PLC where, among other things, Melrose would make an all cash offer for all outstanding shares of Elster at US$20.50 per American Depositary Share, or approximately US$2.3 billion in aggregate on a fully diluted basis. The administrative board of Elster is in the process of evaluating whether the proposal is in the best interest of Elster and its stakeholders.

In the ETF space, iShares Dow Jones US Technology ETF (IYW) is up 0.3%; Technology Select Sector SPDR ETF (XLK) is up 0.6%; and iShares S&P North American Technology ETF (IGM) is up 0.62%. iShares S&P North American Technology-Software Index (IGV) is down 0.3%.

SPDR S&P Semiconductor (XSD) is up 0.93% and Semiconductor Sector Index Fund (SOXX) is up 01.3%.

SPDR S&P International Technology Sector ETF (IPK) is up 1.13%.




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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