Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 (
): +0.34%, touched new year highs.
Financial Select Sector SPDR (
): +0.45%, near year highs
iShares MSCI Emerging Markets Index (
iPath S&P 500 VIX Short Term Futures TM (
): -1.1%, near year lows.
PowerShares QQQ Trust, Series 1 (
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and
others, continue to be firmer for the most part. Actively traded
PowerShares QQQ (
) is up 0.13%.
U.S. stocks are showing more modest gains, with investors and
traders hopeful but also cautious that another round of
quantitative easing will be announced at this week's Federal Open
Market Committee policy meeting. Earlier, markets were buoyed by
German constitutional court's ruling that the 500-billion euro
rescue fund for failing European economies cannot be blocked. Back
home, U.S. imports, ex oil, fell 0.2%, while export prices, ex
agriculture, increased 0.4% in August. Wholesale inventories were
up 0.7% in July.
Winners and Losers
Tech ETFs Technology Select Sector SPDR ETF (XLK), up 0.32% to
near year highs; iShares Dow Jones US Technology ETF (IYW), up
0.18%; iShares S&P North Amercan Technology ETF (IGM), up
0.37%; and iShares S&P North American Technology-Software Index
(IGV) up 0.55%.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) is up
0.64% and Semiconductor Sector Index Fund (SOXX) is up 0.63%.
SPDR S&P International Technology Sector ETF (IPK) is up
In sector news, Facebook (FB) continue to gap higher, now up 6%.
Facebook started popping higher Tuesday night after the company's
chairman and CEO Mark Zuckerberg concluded his presentation at
TechCrunch's Disrupt Conference in San Francisco. Zuckerberg
detailed some of the things the company is currently working on,
such as the Instagram acquisition and FB's move into search, as he
believes the company is uniquely positioned to address search
queries due to its user base. Zuckerberg also said that Facebook
would not be releasing a Facebook phone as this would be the wrong
move for the company. Earlier, Zuckerberg expressed his
disappointment over the poor performance of FB stock. He said that
the company is building value over the long term, and is focusing
on mobile as the "most important thing over the next 3-5
Dow Jones U.S. Energy Fund (IYE) is up 0.6%; Energy Select
Sector SPDR (XLE) is up 0.7%.
In corporate news, Transocean (RIG) shares were fluctuating
between gains and losses. RIG is expecting FY 2013 revenue to be
$1.15-$1.2 billion lower than expected, according to a report by
theflyonthewall.com. This week, it sold $1.5 billion of debt to
fund the construction of four drillships.
Crude was down 0.10% while November natural gas was up 0.55%.
United States Oil Fund (USO) is up 0.03%. United States Natural Gas
Fund (UNG) is down 0.54%.
Gold was down 0.11% while silver was down 1.58%. Among rare
metal funds, SPDR Gold Trust (GLD) is down 0.04%; iShares Silver
Trust (SLV) down 0.6%.
Healthcare ETFs Health Care SPDR (XLV), up 0.18% to near year
highs; Vanguard Health Care ETF (VHT), up 0.25% to near year highs;
and iShares Dow Jones US Healthcare (IYH), up 0.22% near its year
high. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is down
In corporate news, PURE Bioscience, Inc. (PURE) has hit new year
lows after it announced the pricing of an underwritten public
offering of 3.784 million shares of its common stock, offered at a
price to the public of $1.10 per share. The gross proceeds to PURE
from this offering are expected to be around $4.16 before deducting
the underwriting discount and other estimated offering expenses
payable by PURE. PURE has granted the underwriters a 45-day option
to purchase at the public offering price up to an aggregate of
567,600 additional shares of common stock to cover overallotments,
Consumer ETFs are weaker: Consumer Staples Select Sector SPDR
(XLP), down 0.14%; iShares Dow Jones US Consumer Goods (IYK), down
0.23% and Vanguard Consumer Staples ETF (VDC), down 0.18%.
Retail ETFs are firmer: SPDR S&P Retail (XRT), up 0.74%
after touching a new year high of $63.76; PowerShares Dynamic
Retail (PMR), up 0.59%; and Market Vectors Retail ETF (RTH), up
0.43% with a new 52-week high of $44.81.
Among stocks, Coffee Holding Co. (JVA) is up 17% at around
$8.60, pulling back from pre-market gains of some 22%, after the
company reported Q2 earnings of $0.19 per share, compared with the
prior-year period's $0.03. This may not be comparable to the single
analyst estimate on Capital IQ consensus of $0.01. Revenues were
$44.5 mln, up 24.3% from $35.8 mln in the same period last year,
versus the single analyst estimate of $36 mln.
Power Play -
Financial ETFs continue to be firmer, tracking financial stocks,
which have seen a lift after Germany's top court ruled the European
Stability Mechanism, a 500 billion euro rescue fund for failing
European economies, cannot be blocked. The ruling allows Germany,
one of the strongest economies on the continent, to participate in
the fund and ultimately help stabilize the distressed countries
through government debt purchases.
Select Financial Sector SPDRs (
) is up 0.45% to near year highs. Direxion Daily Financial Bull 3X
shares (FAS) is up 1.25%. Its bearish counterpart, FAZ, is down
1.2% and has hit year lows.
In financial news, Moody's (MCO) is up 2.5% and has hit year
highs. Earlier, the company raised its EPS guidance range for FY12,
now expecting $2.76 - $2.86. Moody's pro-forma EPS guidance range
is $2.70 to $2.80. This pro-forma EPS excludes an approximate $0.06
per share benefit related to the favorable resolution of a legacy
tax matter in the Q3. Analysts polled by Capital IQ are expecting
FY12 EPS to be $2.71. The company now expects FY12 revenue to grow
12% - 13%. Expenses are now also expected to increase 12% - 13%.
FY12 operating margin is still projected to be 39%. The effective
tax rate is now expected to be 32%.