Referenced Stocks

Mid-Day ETF Update: ETFs, Stocks Continue to Edge Higher on Upbeat July Retail, Wholesale Data

By Midnight Trader August 14, 2012, 01:28:35 PM EDT

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

SPDR S&P 500 ( SPY ): +0.1%

iPath S&P 500 VIX Short Term Futures TM ( VXX ): +4.5%, earlier neared year low

iShares Russell 2000 Index ( IWM ): -0.14%

PowerShares QQQ Trust, Series 1 ( QQQ ): +0.15%

iShares MSCI Emerging Markets Index ( EEM ): +0.42%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are mostly firmer. Actively traded PowerShares QQQ ( QQQ ) is up 0.15%.

U.S. stocks continue to post gains, getting a positive lift from upbeat economic data, with U.S. retail sales for July jumping 0.8%, better than expected, and wholesale prices rising 0.3%, also above forecasts. National chain store sales slipped 0.3% in the first two weeks of August from July, according to Redbook Research's latest indicator, a narrower decline than anticipated.

Winners and Losers

Financial -

Select Financial Sector SPDRs (XLF) is up 0.2%. Direxion Daily Finacial Bull 3X shares (FAS) is up 0.9%. Its bearish counterpart, FAZ, is down 0.9%.

In financial news, Nationstar Mortgage Holdings Inc. (NSM) is up 7% and has hit new year highs, reversing earlier losses of some 2% after it reported second quarter 2012 net income of $36.3 million, or $0.41 per share, on revenues of $200 million. In the same period last year, net income was $50.2 million, or $0.67 per share, on revenues of $161.7 million. No analyst estimates were available for comparison.

Kennedy-Wilson Holdings, Inc. (KW) is down 0.2% after the company announced that it and its partner, the European Commercial Real Estate Group of Deutsche Bank AG (DB), acquired an Irish loan portfolio with an unpaid principal balance of 361 million EUR ($567 million).

Technology -

ETFs in the space are lower: Technology Select Sector SPDR ETF (XLK), down 0.1%, off year highs; iShares Dow Jones US Technology ETF (IYW), up 0.03%; and iShares S&P North American Technology-Software Index (IGV), down 0.6%. iShares S&P North American Technology ETF (IGM) is flat.

SPDR S&P Semiconductor (XSD) is down 0.5%; and Semiconductor Sector Index Fund (SOXX) is down 0.3%.

SPDR S&P International Technology Sector ETF (IPK) is flat.

Among stocks, Envivio Inc (ENVI) is down 57% and has hit new year lows after the video delivery company slashed its Q2 revenue outlook, citing weak spending by telecom carriers in North America and Western Europe. It now sees sales in a range of $10 million to $11 million, down $7 million from its prior forecast range. Goldman Sachs cut ENVI to Neutral from Buy and dropped the stock from its Americas Buy List. Stifel Nicolaus halved its price target to $6.

Velti (VELT) is up 12% after the mobile marketing company late yesterday reported a Q2 loss of $0.01 per share, in line with the Capital IQ consensus of $0.01 loss per share. Revenues were $58.7 mln, versus the analyst estimate of $56.89 mln. The company expects Q3 revenues of $60 mln - $64 mln, in line with the consensus of $61.14 mln. For FY12, the company anticipates revenues of $285 mln - $296 mln, also in line with the Street consensus of $290.93 mln.

Cellcom Israel (CEL) is up 9.3% after it reported Q2 2012 revenue of $1.49 billion, a 5.7% decrease from the comparable period in 2011, and below the Street view of $1.56 billion. Net income weighed in at $31 million, a 50.4% decrease from Q2 2011. The company reported diluted EPS of $1.22 for the period, above the Capital IQ consensus of $0.98.

Groupon, Inc. (GRPN) is down 26%, sinking to new year lows after it reported late yesterday Q2 revenue of $568.3 mln, up from $392.6 mln realized the same quarter last year but under analyst estimates of $573.13 mln. GRPN reported earnings of $0.08 per share for the quarter, up from a loss of $0.23 per share seen in the same period last year and over consensus estimates of $0.03. For Q3, the company is expecting revenue to be between $580 million and $620 million for the quarter, straddling analyst consensus of $604.49 million.

Commodities -

Crude was are up 0.37%. United States Oil Fund (USO) is up 0.5%. Natural gas was up 3.55%. United States Natural Gas Fund (UNG) is up 3%.

Gold was down 0.47%; Silver was down 0.10% . Among rare metal funds, SPDR Gold Trust (GLD) is down 0.4% and iShares Silver Trust (SLV) is up 0.11%.

Healthcare -

Heathcare and biotech stocks are firmer: Health Care SPDR (XLV), up 0.18% to near year highs; iShares NASDAQ Biotechnology Index (IBB), up 0.7%; Vanguard Health Care ETF (VHT), up 0.23% to near year highs; and iShares Dow Jones US Healthcare (IYH), up 0.47% to near year highs.

WuXi Pharmaceuticals (WX) is up 2.24% and nearer year highs after it reported late Monday net Q2 revenues of $130.4 million, better than the Capital IQ analyst consensus of $128.25 million and non-GAAP diluted earnings per ADS of $0.33, $0.03 above the analyst expectation. The company increased its FY 2012 revenue guidance to $488-$498 million, above the current Street view of $486.22 million.

Array BioPharma (ARRY) is up 5.5% after it reported in yesterday's after-hours session Q4 revenue of $20.7 million, compared to revenue of $19.0 million for the same period in fiscal 2011. Array reported a net loss of $8.0 million, or $0.09 per share for the period, compared to a net loss of $21.8 million, or $0.38 per share, for the same period last year. The Capital IQ consensus estimate anticipated a loss of $0.11 per share on revenue of $21.37 million.

Power Play -

Consumer -

ETFs in the space are edging higher at mid-day: Consumer Staples Select Sector SPDR (XLP), up 0.36% to near year highs; iShares Dow Jones US Consumer Goods (IYK), up 0.43%; and Vanguard Consumer Staples ETF (VDC), up 0.5%.

SPDR S&P Retail (XRT) is up 0.5%; PowerShares Dynamic Retail (PMR), up 0.33%; and Market Vectors Retail ETF (RTH), up 0.61%.

Estee Lauder (EL) is up 10% after it reported Q4 adjusted earnings of $0.17 per share, versus the Capital IQ consensus of $0.16. Revenues were $2.25 bln, versus the analyst estimate of $2.22 bln. For Q1, the company expects adjusted EPS of $0.71 - $0.77, ex one-time items, versus the consensus of $0.79; it expects revenues to grow 5% - 7% year-over-year, on a constant currency basis. For FY13, the company expects adjusted EPS of $2.44 - $2.56, below the consensus of $2.59. Revenues are expected to increase 6% - 8% year-over-year, on a constant currency basis.

Michael Kors (KORS) is up 14% after it reported Q1 earnings of $0.34 per share, versus the Capital IQ consensus of $0.20. Revenues were $414.9 mln, versus the analyst estimate of $367.96 mln. The company expects Q2 EPS of $0.33 - $0.35 on revenues of $490 mln - $500 mln, versus the consensus of $0.27 on revenues of $422.23 mln. For FY13, the company raises its EPS outlook to $1.32 - $1.34 from $1.08 - $1.12, above the analyst estimate of $1.12; it now expects revenues to be $1.8 bln - $1.9 bln, up from the prior guidance of $1.7 bln - $1.8 bln, also above the Street view of $1.78 bln.

Dick's Sporting Goods (DKS) is now down 3.7% after reporting Q2 earnings of $0.65 per share, ex one-time items, versus the Capital IQ consensus of $0.63. Revenues were $1.44 bln, versus the analyst estimate of $1.43 bln. The company also reported a consolidated same store sales increase of 3.8%. DKS expects Q3 EPS of $0.36, in line with the analyst estimate of $0.36. For FY12, it raises its EPS outlook to $2.47 - $2.51, ex non-recurring items, from $2.45 - $2.48, in line with the consensus of $2.51. It also anticipates comp sales to increase 4% - 5%, from the prior growth outlook of 3% - 4%.




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, QQQ, SPY, VXX



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