Active broad market exchange-traded funds in Thursday's regular
SPDR S&P 500 (
iShares MSCI Japan Index (
iPath S&P 500 VIX Short Term Futures (
iShares MSCI Emerging Markets Index (
Financial Select Sector SPDR (
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and
others, continued to be in the red at mid-day. Actively traded
PowerShares QQQ (QQQ) was down 0.23%.
U.S. stocks were also trading firmly in the negative territory,
but pared down earlier losses following better-than-expected weekly
jobless claims and housing data. Weakness in the U.S. and overseas
markets were triggered by unexpectedly weak data from China, which
reported a decline in its manufacturing index for May. Japan's
Nikkei Index plunged 7.32%, also weighing on market sentiment.
Winners and Losers
Select Financial Sector SPDRs (
) was down 0.66%. Direxion Daily Financial Bull 3X shares (FAS) was
down 1.54%. Its bearish counterpart, FAZ, was up 1.57%.
Among financial stocks, Lender Processing Services (LPS) climbed
12.30%, earlier hitting a 52-week high of $33.40. This followed
media reports late Wednesday that the mortgage services provider is
in advanced talks to be bought by Fidelity National Financial and
Thomas H. Lee Partners. The deal is worth about $2.9 billion and
would value Lender Processing shares at around $33 per share, the
Wall Street Journal and Reuters reported.
Technology Select Sector SPDR ETF (XLK) inched up 0.06%; other
iShares Dow Jones US Technology ETF (IYW), iShares S&P North
American Technology ETF (IGM) and iShares S&P North American
Technology-Software Index (IGV) were also firmer, trading at the
higher end of their 52-week ranges.
Semiconductor ETFs SPDR S&P Semiconductor (XSD) and
Semiconductor Sector Index Fund (SOXX) were in negative territory,
down 0.60% and 0.32% respectively.
SPDR S&P International Technology Sector ETF (IPK) was down
4.68%, with a new 52-week low of $4.68.
In sector news, Hewlett-Packard (HPQ) surged 13.9% in mid-day
actions, adding to earlier gains of some 11%. The company reported
late Wednesday Q2 EPS of $0.87, vs. the analyst consensus of $0.81
per share on Capital IQ. Revenue was $27.6 billion, vs.
expectations of $28 billion. For Q3, the company guides for EPS of
$0.84-$0.87, vs. the Street view of $0.83. For FY 2013, the company
expects EPS of $3.50-$3.60, vs. expectations of $3.45 per
Dow Jones U.S. Energy Fund (IYE) was down 0.34%; Energy Select
Sector SPDR (XLE) slipped 0.21%.
In sector news, ONEOK (OKE) reversed at mid-day, down 1.16%
after chairman and CEO John W. Gibson on Wednesday told
shareholders that ONEOK expects to increase its dividend by 55% to
65% between 2012 and 2015, subject to ONEOK board approval.
Crude was down 0.50%, while natural gas was up 0.73%. United
States Oil Fund (USO) was down 0.69%. United States Natural Gas
Fund (UNG) was up 0.98%.
Gold was up 1.43% and silver was down 0.30%. Among rare metal
funds, SPDR Gold Trust (GLD) was up 1.66%; iShares Silver Trust
(SLV) was up 0.79%.
Healthcare ETFs Health Care SPDR (XLV), Vanguard Health Care ETF
(VHT), and iShares Dow Jones US Healthcare (IYH) were mixed to
lower at mid-day. Biotech ETF iShares NASDAQ Biotechnology Index
(IBB) was up 0.39%.
In corporate news, Mannkind (MNKD) was up 9.10% and touched a
new 52-week high of $6.99 after Seeking Alpha published a positive
report about the company's insulin inhaler to treat diabetes and
said the company is highly likely to become an attractive takeover
target. The report said the price tag would likely be in the range
of $11 billion, or $27.50 a share, but added that its figures may
be conservative. Mannkind's founder Alfred Mann recently told
investors that the inhaler, currently in clinical phase three
trials, may be "the most significant medical product ever," the
Power Play -
Retail ETFs continued to see active trade as several retailers
reported earnings results. SPDR S&P Retail (XRT) and
PowerShares Dynamic Retail (PMR), were higher, trading near their
52-week highs. Market Vectors Retail ETF (RTH) was off 0.25%, but
hit a new 52-week high of $52.60.
In the after-hours session later, retailers Aeropostale (ARO),
Gap (GPS), Ross Stores (ROST), Sears (SHLD) and Zumiez (ZUMZ) will
also be reporting their financial results.
In sector news, specialty apparel retailer rue21 (RUE) was up
22.66% and touched a new 52-week high of $42 after it reported that
it had signed a deal under which Apax Partners will purchase all
outstanding RUE shares for $42 per share in cash, a transaction
valued at $1.1 billion.
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