Referenced Stocks

Mid-Day ETF Update: ETFs, Stocks Continue To Plunge On Weak July Manufacturing Data, New Debt Restructuring for Greece

By Midnight Trader July 24, 2012, 01:24:56 PM EDT

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

SPDR S&P 500 ( SPY ): -1.1%

iShares MSCI Emerging Markets Index ( EEM ): -0.7%

iPath S&P 500 VIX Short Term Futures ( VXX ): +4.3%

iShares Russell 2000 Index ( IWM ): -1.2%

Financial Select Sector SPDR ( XLF ): -0.8%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are mostly weaker. Actively traded PowerShares QQQ (QQQ) is down 0.8%.

U.S. stocks are sinking farther into the negative territory following a Reuters report citing EU officials as saying Greece needs another round of debt restructuring. The report adds fuel to increasing concerns over the region's debt crisis. Also weighing on sentiment is the report from the Markit flash U.S. manufacturing purchasing managers index that in July, the manufacturing sector slowed to its second-weakest level since the recession. But tech giant Apple (AAPL) is scheduled to report Q3 earnings in today's after hours, and with its record of reporting better-than-expected earnings, investors are hoping it will give markets a jolt.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) is down 0.8%. Direxion Daily Financial Bull 3X shares (FAS) is down near 2.2%. Its bearish counterpart, FAZ, is up around 2.3%.

Actives in the sector are mostly weaker: Bank of America (BAC), down 0.9%; Goldman Sachs (GS), up 1%; Morgan Stanley (MS), down 1.1%; and Citigroup (C), down 0.9%.

Sterling Bancorp (STL) is up 4.3% after reporting better-than-expected Q2 results, with earnings of $0.16 per share, versus the Capital IQ consensus of $0.15. In the same period last year, the company reported EPS of $0.08. Revenues were $36.4 mln, up 4% year-over-year, versus the average estimate from two analysts of $33.8 mln.

Synovus Financial (SNV) is down 0.5% after posting Q2 EPS of $0.03, topping estimates by a penny.

Great Southern Bancorp, Inc. (GSBC) is up 3% and near year highs after it reported that preliminary earnings for the quarter ended June 30, 2012, were $1.58 per diluted common share ($21.5 million available to common shareholders) compared to $0.37 per diluted common share ($5.1 million available to common shareholders) for the quarter ended June 30, 2011. During the quarter, non-interest income increased $40.1 million to $38.0 million when compared to the quarter ended June 30, 2011.

Industrial -

ETFs in the space are lower: Vanguard Industrials (VIS), down 1.5%; iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ), down 1.4% and Select Sector SPDR-Industrial (XLI), down 1.4%.

Lockheed Martin (LMT) is up 0.6% after posting Q2 EPS of $2.38, blowing past estimates for $1.91. Revenue for the quarter came in at $11.92 billion, topping the $11.29 billion consensus. The company has raised its FY2012 EPS to $7.90-$8.10 from $7.70-$7.90. The Street is at $7.89.

Du Pont (DD) is down 2% after reporting Q2 earnings of $1.48 per share, ex one-time items, versus the Capital IQ consensus of $1.46. Revenues were $11.01 bln, versus the analyst estimate of $11.25 mln. The company reaffirms its guidance for FY12, but now expect EPS toward the lower end of its $4.20 - $4.40 guidance range, excluding non-recurring items. Analysts are looking for $4.26 EPS. The company said it sees earnings in the lower end of its guidance due to uncertainties associated with macros and currency as well as a higher tax rate related to earnings mix.

Energy -

Dow Jones U.S. Energy Fund (IYE) is down near 2% while Energy Select Sector SPDR (XLE) is down more than 2%.

Noble Energy (NBL) is down 2.2% after the company announced that it will sell certain of its oil and natural gas properties in the Permian Basin to Sheridan Holding Company II, LLC, a privately held Houston based oil and gas company, for $320 million. The properties include NBL's interest in about 250 producing wells on approximately 11,000 net acres. As of April 1, 2012, the effective date of the transaction, net daily production was over 1,500 barrels of oil equivalent per day consisting of more than 90% crude oil and natural gas liquids.

Commodities -

Crude was up around 0.2%. United States Oil Fund (USO) has turned positive.

Gold was down around 0.3%; likewise, silver was down more than 1%. Among rare metal funds, SPDR Gold Trust (GLD) has turned slightly positive while iShares Silver Trust (SLV) is down 0.6%, having fallen to near year lows earlier.

Healthcare -

ETFs are tracking the broader market lower: Health Care SPDR (XLV), down near 1.2%; iShares NASDAQ Biotechnology Index (IBB), down 0.7%; Vanguard Health Care ETF (VHT), down 1.32%; and iShares Dow Jones US Healthcare (IYH), down 1.2%.

Immunomedics, Inc. (IMMU) is up 3.3% after the company and its partners the Karolinska Institutet and Sweden, announced that their scientists have published an article in the current issue of the journal, PLoS One, describing their collaboration in the design and testing of a new class of drugs that significantly destroyed the AIDS virus, HIV (Human Immunodeficiency Virus), and may potentially eradicate the virus completely.

WebMD Health (WBMD) is down 22.3% and hit new year lows after it announced that it expects to report a Q2 loss of $0.12 per share, in line with the Capital IQ consensus of $0.12 loss per share. It expects revenues to come in at $112 mln, just shy of the analyst estimate of $112.99 mln. For Q3 the company expects revenues of $115 mln - $120 mln, below the Street view of $129.58 mln. It also lowered its guidance for FY12, now seeing revenues of $455 mln - $480 mln, down from the prior guidance of $500 mln - $535 mln. Analysts are looking for revenues of $502.29 mln.

ICON plc (ICLR) is down 2.6% after it reported Q2 earnings of $0.21 per share, ex one-time items, versus the Capital IQ consensus of $0.22. Revenues were $277 mln, versus the analyst estimate of $266.32 mln. In the same period last year, the company reported EPS of $0.21 on revenues of 233 mln.

Consumer -

ETFs continue to see weakness: Consumer Staples Select Sector SPDR (XLP), down 0.6%; iShares Dow Jones US Consumer Goods (IYK), down around 1%; and Vanguard Consumer Staples ETF (VDC), off 0.76%.

SPDR S&P Retail (XRT) is down around 1.2%; PowerShares Dynamic Retail (PMR), down near 0.4%; and Market Vectors Retail ETF (RTH), down about 0.7%.

Under Armour (UA) is up mor than 10% at $53.40, after hitting a new year high of $55. The company earlier reported Q2 EPS of $0.06, a penny higher than estimates. Revenue for the quarter came in at $369 million, topping the $358.5 million consensus. The company says it sees FY2012 revenue of $1.80 billion-$1.82 billion. The Street is looking for $1.81 billion.

Whirlpool (WHR) is down 6.5% after it reported Q2 adjusted earnings of $1.55 per share, ex one time items, compared with the prior year period's $2.10 loss per share. This fell short of the Capital IQ consensus of $1.58. Revenues were $4.51 bln, down 4.6% from $4.7 bln last year, versus the analyst estimate of $4.63 bln. The company reaffirms its guidance for FY12, still expecting GAAP EPS of $5.00 - $5.50, in line with the $5.10 GAAP EPS consensus.

Power Play -

Technology -

Tech actives are mostly in the red: Apple (AAPL), up 0.03%; Microsoft (MSFT), down 0.6%; Intel (INTC), down 1.3%; Google (GOOG), down 1.3%; Cisco (CSCO), down 5.8%; and Yahoo (YHOO), down 2.3%.

Apple (AAPL) will be reporting its Q3 earnings in today's after hours. Analysts polled by Capital IQ are expecting the company to post EPS of $10.38 on revenues of $37.35 bln.

AudioCodes (AUDC) is down 7.8% after sinking to new year low of $1.46. The company earlier reported a Q2 loss of $0.04 per share, in line with the single analyst estimate of $0.04 loss per share, according to Capital IQ. Revenues were $31 mln, versus the single analyst estimate of $30.9 mln. In the same period last year, the company reported EPS of $0.12 on revenues of $41.5 mln.

F5 Networks, Inc. (FFIV) is off 5% after it announced that Westcon Group has become the company's first global distribution partner. With this expanded relationship, Westcon and F5 Networks now offer global programs for traditional partners, managed service providers (MSPs), and global cloud providers.

Lexmark (LXK) is down 13%, reaching a new 52-week low of $16.10 a share after reporting Q2 EPS of $0.89, ahead of the analyst consensus of $0.88 per share on Capital IQ. Revenue was $921 mln, vs. expectations of $922 mln. For Q3, the company expects revenue to decline 9% to 11% year on year. EPS is seen at about $0.75 to $0.85 per share. The Street view is $0.90 per share.

SAP (SAP) is up 1% after it today reported Q2 non-IFRS earnings of EUR 0.55 or $0.67 per share, compared with the prior year period's EUR 0.49 or $0.59 per share. This may not be comparable to the Capital IQ consensus of EUR 0.76 or $0.92. Revenues were EUR 3.9 bln or $4.72 bln, up 18% from EUR 3.3 bln or $3.99 bln and in line with the analyst estimate of EUR 3.86 mln or $4.67 mln.

ETFs in the space are lower: iShares Dow Jones US Technology ETF (IYW), down 1.03%; iShares S&P North American Technology ETF (IGM), down 1.14%; iShares S&P North American Technology-Software Index (IGV), down 1.31%; and Technology Select Sector SPDR ETF (XLK), down 1.05%.

SPDR S&P Semiconductor (XSD) is down 1.99%; likewise, Semiconductor Sector Index Fund (SOXX) is down 1.14%.

SPDR S&P International Technology Sector ETF (IPK) is down 0.56%.




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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