Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 (
SPY
): -0.22%
iPath S&P 500 VIX Short Term Futures TM (
VXX
): -0.6%, close to year lows
iShares MSCI Emerging Markets Index (
EEM
): +0.2%
iShares Russell 2000 Index (
IWM
): -0.6%
PowerShares QQQ Trust, Series 1 (
QQQ
): -0.3%
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and
others, are mostly weaker. Actively traded PowerShares QQQ (
QQQ
) is down 0.3%.
U.S. stocks are weaker, losing some of this week's gains after
it was reported that U.S. July import prices fell 0.6%, the fourth
straight month that import prices fell, triggering worries of a
deflationary period. But July export prices rose 0.5%, which may
offset the risk. However, disappointing data on China's exports and
imports, which further underscore the slowdown in the country's
growth, continue to weigh on market sentiment.
Winners and Losers
Technology -
Tech ETFs are in the red in mid-day action: Technology Select
Sector SPDR ETF (XLK), down 0.2% but still near year highs; iShares
Dow Jones US Technology ETF (IYW), down 0.2%; iShares S&P North
American Technology ETF (IGM), down 0.15%; and iShares S&P
North American Technology-Software Index (IGV), down 0.1%.
SPDR S&P Semiconductor (XSD) is up -0.1%; Semiconductor
Sector Index Fund (SOXX) is down 0.2%. SPDR S&P International
Technology Sector ETF (IPK) is flat.
Among stocks boosted by upbeat earnings reports, Fusion-io (FIO)
is up near 30% after it reported in yesterday's after-hours session
revenue of $106.6 million for Q4 2012, above the Capital IQ
consensus of $95.85 million and up 49% from $71.7 million for Q4
2011. Non-GAAP net income for the period was $9.8 million, or $0.09
per diluted share, $0.05 better than the analyst consensus. This
compared to non-GAAP net income of $13.2 million, or $0.15 per
diluted share, in the same quarter of 2011.
Bottomline Technologies (EPAY) is up more than 20%. The company
reported late Thursday Q4 earnings of $0.26 per share, ex one-time
items, versus the Capital IQ consensus of $0.21. Revenues were
$61.4 mln, versus the analyst estimate of $59.69 mln. In the same
period last year, the company reported EPS of $0.29 on revenues of
$54.25 mln. Earlier, shares were upgraded to Buy from Hold at Craig
Hallum.
In M&A news in the tech space, VanceInfo Technologies Inc.
(VIT) is down 12% on news that it and hiSoft Technology
International Limited (HSFT), down 6.5%, have signed a definitive
agreement for an all-stock merger of equals with a combined equity
value of $875 million.
The companies each reported earnings for Q2. VIT posted Q2 EPS
of $0.19 per share, versus the Capital IQ consensus of $0.20.
Revenues were $94.7 mln, versus the analyst estimate of $91.3 mln.
The company expects Q3 EPS of $0.18 - $0.20 on revenues of $95 mln
- $97 mln. The Street view is $0.25 EPS on revenues of $93.7 mln.
The company also lowered its FY12 EPS outlook to $0.75 - $0.81, ex
one-time items, down from $0.86 - $0.92 and below the consensus of
$0.87. It also raises its FY12 revenues guidance to $372 mln - $376
mln, up from $368 mln and above the consensus of $370.6 mln.
HSFT reported Q2 EPS $0.20 per share on revenues of $71.8 mln.
It expects Q3 revenues to be at least $77 mln, up 30.8%
year-over-year. FY12 revenues are expected to be at least $297 mln,
up 35.6% year-over-year.
Energy -
Dow Jones U.S. Energy Fund (IYE) is down 0.4%; Energy Select
Sector SPDR (XLE) is down 0.4%.
In corporate news, Chesapeake Energy Corp (CHK) are down 4%
after the company said the U.S. government is investigating
possible criminal antitrust violations related to the purchase of
lease of oil and gas properties in Michigan. The antitrust division
of the Justice Department's Midwest field office has subpoenaed
CHK, requiring the company to produce documents before a grand jury
in the Western District of Michigan, according to a regulatory
filing last night. In June, Reuters, citing emails between the
companies it reviewed, reported that CHK plotted with a top
competitor, Canada's Encana Corp (ECA), to suppress land prices in
the Collingwood shale in Northern Michigan.
Recovery Energy, Inc. (RECV) is down 4.2% after it reported a
net loss of $2.8 million, or 16 cents per share, for the second
quarter of 2012 on revenues of $2.3 million. In the corresponding
period last year, net loss was $4.8 million, or 30 cents per share,
on revenues of $2.8 million.
Commodities -
Crude was down 0.65%. United States Oil Fund (USO) is down 0.9%.
Natural gas was down 5.47%, nearing its 52-week low of $2.22.
United States Natural Gas Fund (UNG) is down 3.5%.
Gold was up 0.17% while silver was down 0.22%. Among rare metal
funds, SPDR Gold Trust (GLD) is up 0.2% and iShares Silver Trust
(SLV) is down 0.2%.
Healthcare -
Healthcare and biotech ETFs are mostly higher: Health Care SPDR
(XLV), up 0.1% to near year highs; iShares NASDAQ Biotechnology
Index (IBB), flat%; Vanguard Health Care ETF (VHT), up 0.2%; and
iShares Dow Jones US Healthcare (IYH), up 0.3%.
In corporate news, Carefusion (CFN) is up 7.2% after posting Q4
EPS of $0.51, topping the consensus analyst estimate of $0.39. Q4
revenue was $968 million, above the analyst estimate of 839.60
million.
Antares Pharma, Inc. (ATRS) is down 9% after it reported a Q2
loss of $0.03 per share, below estimates of a loss of $0.02.
Revenues for the quarter increased 28% to $4.5 million, short of
estimates of $4.6 million.
Spectrum Pharmaceuticals (SPPI) is up 2.5% after it said today
that its board of directors has approved an increase in its stock
repurchase program authorizing the repurchase of up to a total of
$100 million of the company's common stock. The company was
previously authorized to repurchase up to $25 million of its
stock.
Horizon Pharma (HZNP) is down 2.95% after posting a Q2 non-GAAP
loss of $0.62 per share, ex one-time items, versus the Capital IQ
consensus of $0.73 loss per share. Net revenues were $3.8 mln,
versus the analyst estimate of $4.44 mln.
In the same period last year, the company reported loss of $5.35
per share on revenues of $1.3 mln.
Consumer -
ETFs in the space are weaker at mid-day: Consumer Staples Select
Sector SPDR (XLP), down 0.14%; iShares Dow Jones US Consumer Goods
(IYK), down 0.41%; and Vanguard Consumer Staples ETF (VDC), down
0.1%.
Retail ETFs SPDR S&P Retail (XRT) is down 1.1%; likewise,
PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF
(RTH) are also lower, down 0.24% and 0.6%, respectively. RTH has
hit year highs today though.
Among stocks, J.C. Penney Company (JCP) is now up 2.8%,
reversing earlier losses, after it reported a Q2 loss of $0.37 per
share, ex one-time items, down from the prior-year period's $0.19,
and worse than the Capital IQ consensus of $0.07 loss per share.
Revenues were $3.02 bln, down 22.6% from $3.91 bln in the
comparable quarter a year ago, and below the analyst estimate of
$3.21 bln. For Q2, the company incurred $159 million in
restructuring and management transition charges. Comparable store
sales declined 21.7%. The company no longer anticipates achieving
the previously issued non-GAAP earnings guidance for FY13 of $2.16
per share. Analysts are expecting $1.33 EPS.
Las Vegas Sands (LVS) is down 0.9% as the Wall Street Journal
reports that the company is being probed by the Justice Department,
the Securities and Exchange Commission and its own audit board
concerning a breach of U.S. anti-bribery laws in mainland China
involving a real-estate payment, sponsorship of a basketball team,
and a ferry deal. The probe adds to those for possible money
laundering and one centered on LVS's Macau casinos.
Power Play -
Financial -
Select Financial Sector SPDRs (XLF) is down 0.4%. Direxion Daily
Financial Bull 3X shares (FAS) is down 1.3%. Its bearish
counterpart, FAZ, is up 1.1%.
Among active stocks in the sector, CMS Bancorp (CMSB) shares are
up 11.6% and have touched $8.20 after the company announced that it
will merge with Customers Bancorp Inc.
Janus Capital Group (JNS) is up 10%, trimming earlier gains of
about 19%, after it announced that it entered into a strategic
alliance with Japanese life insurer, The Dai-ichi Life Insurance
Company, Limited. Dai-ichi Life plans to acquire at least 15%, and
no more than 20%, of JCG's outstanding common shares through open
market purchases and potentially through the exercise of
conditional options issued to Dai-ichi Life by JCG.
Goldman Sachs (GS) is down 1.2% after announcing that it will
sell Japanese contractor Fujita Corp to Daiwa House Industry for 50
billion yen ($636 million), according to Reuters, marking another
exit by the U.S. bank from its investments in Japan.
Separately, the bank will not be facing criminal charges related
to subprime mortgage securities it sold to clients during the
financial crisis in 2007-2009 as the U.S. Justice Department said
that it will no longer pursue the case against the bank, according
to Reuters. In the report, the Justice Department said late
Thursday that the burden of proof needed to bring a criminal case
against the bank could not be met at this time.
Barclays ADRs (BCS) are up 2% after the bank earlier announced
that Sir David Walker has been appointed a non-executive director,
effective Sept. 1. Walker will succeed the bank's chairman, Marcus
Agius, who resigned last month during the investigation of the
LIBOR manipulation scandal, along with the bank's CEO Robet E.
Diamond, Jr. and other senior executives. In the company's
announcement, Agius is set to retire as chairman effective Nov. 1.
Walker will lead the search for the bank's new CEO, replacing
Diamond.