Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 (
iShares MSCI Emerging Markets Index (
iShares Russell 2000 Index (
iShares MSCI Japan Index (
iPath S&P 500 VIX Short Term Futures TM ETN (
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and
others, are mostly mixed. Actively traded PowerShares QQQ (QQQ) is
U.S. stocks have reversed back in to negative territory as no
signs of a compromise over the U.S. budget being reached can be
seen. Negotiations ground to a halt after reports late yesterday
stated that House Republicans opposed the Obama administration's
bid of $1.6 trillion in new tax revenue and an unlimited debt
ceiling. Downbeat economic data is also weighing on market
sentiment: October consumer spending fell 0.2%, missing the
economists' forecasts of a 0.1% growth; personal income was flat,
versus the forecast of a 0.2% growth; and the Chicago Purchasing
Managers' Index rose to a 50.4 reading this month from a 49.9
reading in October, but also missed estimates.
Winners and Losers
Select Financial Sector SPDRs (XLF) is down 0.16%. Direxion
Daily Financial Bull 3X shares (FAS) is down 0.23%. Its bearish
counterpart, FAZ, is up 0.23%.
Among financial actives, Barclays PLC (BCS) is up 0.77% after
Reuters reported that the bank could ax as many as 3,500 investment
bank staff jobs and cut its advisory or equities operations in Asia
as part of a broader strategic review aimed at fixing the bank's
culture in the wake of the financial crisis. Reuters said the
future shape and size of the investment bank is seen as the most
critical part of Chief Executive Antony Jenkins' review, as it
contributes more than half of group profits but conducts the
"casino" activities politicians and regulators are cracking down
are weaker in mid-day action: Technology Select Sector SPDR ETF
(XLK), down 0.17%; iShares Dow Jones US Technology ETF (IYW), down
0.35%; iShares S&P North American Technology ETF (IGM), down
0.34%; and iShares S&P North American Technology-Software Index
(IGV), down 0.24%.
Semiconductor ETFs, SPDR S&P Semiconductor (XSD) has turned
positive and is now up 0.14%. Ditto with Semiconductor Sector Index
Fund (SOXX), now up 0.06%.
SPDR S&P International Technology Sector ETF (IPK) is up
In sector news, NTELOS (NTLS) is down 23.5% and has set a new
52-week low amid chatter on Twitter that David Nixon of FBR
believes Sprint (S) will end its wholesale deal with NTLS, with an
announcement set for FY13 (ends in March). FBR noted the Sprint
deal accounted for 32.4% of NTELOS' 2011 wireless revenue, and
57.4% of its adjusted EBITDA.
Dow Jones U.S. Energy Fund (IYE) is flat; Energy Select Sector
SPDR (XLE) is down 0.03%.
In sector news, Abraxas Petroleum (AXAS) is up 0.9% after it
said that it expects Q4 production to average between 4,300 BOEPD -
4,500 BOEPD, reflecting the company's sale of its Nordheim
properties, whch will close in mid-December. AXAS also expects 2013
production to average between 4,900 BOEPD - 5,200 BOEPD, which
equates to about 21% - 28% growth over 2012. The company added that
it is actively marketing numerous assets which it deems non-core,
assets with a low working interest or assets with little associated
production that are not reflected in this guidance.
Crude was up 0.5%; natural gas was down 1.21%. United States Oil
Fund (USO) is up 1%. United States Natural Gas Fund (UNG) is down
Gold was down 0.62%; silver was down 2.05%. Among rare metal
funds, SPDR Gold Trust (GLD) is down 0.8%; iShares Silver Trust
(SLV) is down 2.5%.
Healthcare ETFs: Health Care SPDR (XLV), has turned slightly
positive; Vanguard Health Care ETF (VHT), down 0.1%; and iShares
Dow Jones US Healthcare (IYH), down 0.1%. Biotech ETF iShares
NASDAQ Biotechnology Index (IBB) is down 0.66%.
In corporate news, Exelixis (EXEL) is down 7%. Shares were
halted in yesterday's after-hours session, following news that the
company received approval from both the U.S. Food and Drug
Administration (FDA) and the European Medicines Agency (EMA) for
Cometriq (cabozantinib) to treat medullary thyroid cancer that has
metastasized, or spread to other parts of the body. Cometriq is a
kinase inhibitor that blocks abnormal kinase proteins involved in
the development and growth of medullary cancer cells. It is only
drug approved by the FDA to treat medullary thyroid cancer in
the past two
years. Also, Stifel Nicolaus reportedly raised its price target
on shares of EXEL from $8.00 to $9.00. According to Bloomberg, the
company has gained 27% in the past 12 months so maybe the news was
already priced in.
Power Play -
Consumer ETFs: Consumer Staples Select Sector SPDR (XLP), up
0.1% and near year highs; iShares Dow Jones US Consumer Goods
(IYK), down 0.29%; and Vanguard Consumer Staples ETF (VDC), now up
Retail ETFs are mostly higher: SPDR S&P Retail (XRT), down
0.5%; PowerShares Dynamic Retail (PMR), now down 0.12%; and Market
Vectors Retail ETF (RTH), up 0.44%, with a new 52-week high of
In sector news, Genesco (GCO) is down 7.5%, reversing modest
pre-market gains. The company earlier reported Q3 earnings of $1.44
per share, ex one-time items, versus the Capital IQ consensus of
$1.33. Revenues were $664.5 mln, versus the analyst estimate of
$659.86 mln. Comparable store sales in the quarter increased by 4%.
The company raises its guidance, now expecting FY13 EPS of $5.00 -
$5.08, up from the prior range of $4.88 - $5.00. Analysts are
looking for $5.02 EPS. Comparable store sales are projected to
increase 4% for the full year.
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