Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 (
SPY
): -1.3%
Financial Select Sector SPDR (
XLF
): -1.2%
iPath S&P 500 VIX Short Term Futures (
VXX
): +5.1%
iShares Russell 2000 Index (
IWM
): -1.9%
iShares MSCI Emerging Markets Index (
EEM
): -2.5%
Broad Market Indicators
Most broad-market exchange-traded funds, including SPY, IWM, IVV
and others, are lower. Actively traded PowerShares QQQ (QQQ) is
down 1.5%.
U.S. stocks are retreating into negative territory, hurt by a
barrage of downbeat economic data, which all but confirmed the
Federal Reserve's announcements yesterday of slowing U.S. economic
growth. Factory activity in the Philadelphia region for June fell
to its lowest level in the last 10 months, while first-time jobless
claims were pretty flat. Still, one positive report shows that
there is a low risk of a downturn this year - the leading economic
indicators data showed growth of 0.3% in May, better than what most
economists were expecting.
Winners and Losers
Financial -
Select Financial Sector SPDRs (
XLF
) is down 1.2%. Direxion Daily Financial Bull 3X shares (FAS) is
down 3.5%. Its bearish counterpart, FAZ, is up 3.4%.
Among actives: Bank of America (BAC) is down 2%, Goldman Sachs
(GS) is also down 2%, Morgan Stanley (MS) is down 0.7%, Citigroup
(C) is down 2.3%.
Bank of America (BAC) has reached a settlement with shareholders
who filed a lawsuit against the bank, alleging that it overpaid for
the acquisition of Merrill Lynch & Co., according to a report
on Reuters. The report's source was a written order by U.S.
District Judge P. Kevin Castel in Manhattan. The order did not
reveal the terms of the settlement but previously filed court
papers indicate that the expected amount would total $20 million,
the report added. A second case against directors of the bank had
been filed in Delaware Chancery Court, but it is not certain
whether the New York settlement would also resolve all claims in
the Delaware case.
Technology -
Among tech actives: Apple (AAPL) is down 0.4%; Microsoft (MSFT)
is down 1.4%; Intel (INTC) is down 2.7%; Google (GOOG) is down
1.3%; Cisco (CSCO) is down 2.3%; Yahoo (YHOO) is down 1%.
Micron Technology (MU) is down 6% after the company reported a
wider loss in Q3 compared to analyst estimates. It posted a Q3 loss
per share of $0.32, versus the Capital IQ consensus of $0.20 loss
per share. Revenues were $2.17 bln, versus the analyst estimate of
$2.01 bln.
Red Hat (RHT) is down 5.3%, trimming earlier losses of about
10%, after the company said in yesterday's after hours session that
it expects Q2 revenue of $320 to $322 million and EPS of $0.28 to
$0.29 per share. Analysts polled by Capital IQ expect revenue of
$330.6 mln and earnings of $0.29 per share.
In the ETF space, iShares Dow Jones US Technology ETF (IYW) is
down 1.7%; Technology Select Sector SPDR ETF (XLK) is down 1.4%;
and iShares S&P North American Technology ETF (IGM) is down
1.8%; iShares S&P North American Technology-Software Index
(IGV) is down 2.4%.
SPDR S&P Semiconductor (XSD) is down 2.9% and Semiconductor
Sector Index Fund (SOXX) is down 2.8%.
SPDR S&P International Technology Sector ETF (IPK) is
flat.
Energy -
Dow Jones U.S. Energy Fund (IYE) is down 3%. Energy Select
Sector SPDR (XLE) is also down 3%.
Murphy Oil (MUR) is down 3% after the company announced the
unexpected departure of CEO David Wood. The company has appointed
EVP Steve Cosse as the new CEO.
Key Energy Services (KEG) is down 14% and near year lows after
it lowered its forecast for Q2, now expecting EPS of $0.18 - $0.20
compared to the Capital IQ consensus estimate of $0.31. The
company's previous forecast was EPS of $0.31- $0.33. The company is
also expecting revenue growth of 5% - 7% sequentially, versus the
prior forecast of 10% - 15%.
Commodities -
Commodities are feeling the pressure from the recently released
downbeat economic data, with gold slipping below $1,600 per ounce
while crude hits below $80 per barrel. Crude is down 2.35% at
$79.54 a barrel. United States Oil Fund (USO) is down 2%.
Gold is down $41.00 at $1,574.50 an ounce. SPDR Gold Trust (GLD)
is down 2.3%. Silver down 2% at $27.82 a pound. iShares Silver
Trust (SLV) is down 4% and closer to year lows.
Consumer -
Consumer Staples Select Sector SPDR (XLP) is down 0.5%; iShares
Dow Jones US Consumer Goods (IYK) is down 0.56%; and Vanguard
Consumer Staples ETF (VDC) is down 0.07%.
SPDR S&P Retail (XRT) is down 2%; PowerShares Dynamic Retail
(PMR) is now down 1.7%; and Market Vectors Retail ETF (RTH) is down
1.9% and off year highs.
Bed Bath & Beyond (BBBY) is down more than 15% after it
reported Q1 EPS of $0.89, vs. the analyst consensus of $0.84 per
share on Capital IQ. Sales were $2.218 bln, vs. expectations of
$2.24 bln. For Q2, the company is guiding for EPS of about $0.97 to
$1.03 per share. The Street is at $1.08 per share.
Rite Aid (RAD) is up 8% after it reported a Q1 loss of $0.03 per
share, in line with analysts' expectations. Revenues were $6.47
bln, versus the Capital IQ analyst estimate of $6.46 bln. The
company revised its FY13 outlook, now expecting revenues of $25.3
bln - $25.7 bln, down from the previous outlook of $25.4 bln -
$25.8 bln. Loss per diluted share is expected to be $0.13 - $0.29.
Previously, the company had projected a loss per share of $0.31 -
$0.13. Same store sales to range from a decrease of 0.5% to an
increase of 1% year-over-year. Analysts are expecting the company
to post a loss of $0.23 per share on revenues of $25.59 bln for
FY13.
Power Play -
Healthcare -
Health Care SPDR (XLV) is down 0.7%; iShares NASDAQ
Biotechnology Index (IBB) is down 0.7%; Vanguard Health Care ETF
(VHT) is down 0.7% from near year highs; and iShares Dow Jones US
Healthcare (IYH) is down 0.3%.
Pfizer (PFE) is up 0.7% and closer to year highs after the U.S.
Food and Drug Administration (FDA) approved the company's Lyrica
(pregabalin) capsules CV for the management of neuropathic pain
associated with spinal cord injury. The FDA approval is based on
two Phase 3 trials which showed that Lyrica significantly reduced
neuropathic pain associated with spinal cord injury from baseline
throughout the duration of the studies compared to placebo. Lyrica
had received a priority review designation for this new indication
from the FDA.
Onyx Pharmaceuticals (ONXX) is up more than 40% at year highs
after reporting late Wednesday the U.S. Food and Drug
Administration's (FDA) Oncologic Drugs Advisory Committee (ODAC)
determined by a vote of 11-0 [with 1 abstention] that, in patients
with relapsed and refractory multiple myeloma who have received at
least two prior lines of therapy that included a proteasome
inhibitor and an immunomodulatory agent (IMiD), the benefit-risk
assessment is favorable for the use of Kyprolis (proposed brand
name for carfilzomib). Onyx is developing Kyprolis for use in
multiple myeloma across a variety of treatment lines.
Celgene (CELG) is down more than 10% after it said it decided to
withdraw the new indication submission for REVLIMID (lenalidomide)
and pomalidomide to the Committee for Medicinal Products for Human
Use (CHMP), which was intended for the maintenance treatment of
newly diagnosed multiple myeloma patients who have not progressed
following initial treatment with melphalan, prednisone and REVLIMID
(lenalidomide), or maintenance therapy following autologous stem
cell transplantation.