Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 (
Financial Select Sector SPDR (
iPath S&P 500 VIX Short Term Futures (
iShares Russell 2000 Index (
iShares MSCI Emerging Markets Index (
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and
others, are mostly firmer. Actively traded PowerShares QQQ (QQQ) is
U.S. stocks tumbled after the Federal Reserve extended its
Operation Twist program by $267 billion due to the slowdown in
employment growth. The Fed also kept federal funds target in the
range of 0% - 0.25%, reiterating that low levels of rates are
needed at least through late 2014. The much-anticipated
announcement came at the end of the a two-day policy meeting; but
it has clouded sentiment, particularly with its downbeat outlook on
the unemployment rate.
Winners and Losers
Among tech actives: Apple (AAPL) is down 0.2%; Microsoft (MSFT)
is up 0.85%; Intel (INTC) has turned positive; Google (GOOG) is
down 0.5%; Cisco (CSCO) is up 1.8%; Yahoo (YHOO) is up 0.3%.
Research In Motion (RIMM) is down 4% following a report on
Bloomberg that the company is cutting jobs as part of a broad
cost-saving effort aimed at trimming $1 billion in operating
expenses. The shakeup may lead to job cuts of 2,000 to 3,000,
assuming RIM tries to eliminate 30% of the targeted operating
expenses through labor reductions, the report added.
Adobe (ADBE) is down 2% after the company reported Q2 revenue of
$1.12 bln, in line to just above the analyst consensus of $1.10 bln
on Capital IQ. EPS was $0.60, vs. expectations of $0.59 per share.
For Q3, the company expects revenue of $1.075 bln to $1.125 bln and
EPS of $0.56 to $0.61 per share. The Street is at $1.13 bln in
revenue and earnings of $0.61 per share. For fiscal year 2012, the
company narrowed its annual revenue growth target to a range of 6%
to 7%, versus its prior target range of 6% to 8%. Adobe also
adjusted its annual GAAP diluted earnings per share target range to
$1.69 to $1.76 from its prior targeted range of $1.63 to $1.73; and
its non-GAAP diluted earnings per share target range to $2.40 to
$2.46 from its prior targeted range of $2.38 to $2.48.
FSI International (FSII) is down 18% following its Q3 financial
results. The company reported Q3 2012 sales of $50.8 million, a 98%
jump compared to $25.6 million for the same period in fiscal 2011.
The company's net income for the Q3 2012 $10 million, or $0.25 per
share, compared to net income of $4.1 million, or $0.10 for Q3
2011. Capital IQ consensus estimates anticipated earnings of $0.21
per share on $50.4 million in revenues for the period. The company
issued downside Q4 2012 revenue guidance of $40 million to $45
million, versus the consensus of $48 million.
In the ETF space, iShares Dow Jones US Technology ETF (IYW) has
turned positive; iShares S&P North American Technology ETF
(IGM) has also turned positive, as has iShares S&P North
American Technology-Software Index (IGV) and Technology Select
Sector SPDR ETF (XLK).
Likewise, SPDR S&P Semiconductor (XSD) has turned positive
while Semiconductor Sector Index Fund (SOXX) has strengthened.
SPDR S&P International Technology Sector ETF (IPK) is
Vanguard Industrials (VIS) is down but has recovered some
ground; iShares Trust Dow Jones U.S. Industrial Sector Index Fund
(IYJ) has turned positive; and Select Sector SPDR-Industrial (XLI)
is down less than it was earlier.
Gevo, Inc. (GEVO) continues to trade firmer, now up 35% after it
reported that the U.S. District Court of Delaware denied the Motion
for Preliminary Injunction sought by Butamax Advanced Biofuels, LLC
against Gevo. This decision replaces the previous court order, and
means that Gevo is once again free to sell in any market, to any
customer, in any region.
WSI Industries (WSCI) is up 25%, pulling back from earlier gains
of more than 32%, after reporting late Tuesday that sales for Q3
was $9.5 million versus the prior year's $6.5 million, or an
increase of 45% over the prior year quarter. The company also
reported net income of $598,000 or $.21 per diluted share, which
was an increase of 51% over the prior year quarter amount of
$397,000 or $.14 per diluted share.
Rio Tinto (RIO) is up 1.7% following a Reuters report that it is
investing $3.7 billion in its Australian iron ore operations to
boost production. The report stated that the company's board
approved $4.86 billion in capital outlays, with much of it
allocated to increase iron ore production by 25% by 2016, despite
pressure in the sector due to slowing global growth. The company
has an annual production rate of 230 million metric tons and will
increase output to 283 million metric tons, the report added.
Dow Jones U.S. Energy Fund (IYE) has turned positive, as has
Energy Select Sector SPDR (XLE).
Chevron (CVX) has recovered most of earlier losses after it
announced that its wholly owned subsidiary Chevron Global Energy
has signed a collaboration agreement with Kosmos Energy (KOS) for
exploration of two blocks offshore Suriname. Under the deal, KOS
will have a 50% working interest and remain operator of Blocks 42
and 45 until the end of the exploration phase. Chevron will assume
the remaining 50% working interest and will be the operator
following any commercial discoveries. KOS shares are also lower,
Crude is down 2.94% at $81.56 a barrel. United States Oil Fund
(USO) is down 2%.
Gold is down $19.30 at $1,603.90 an ounce. SPDR Gold Trust (GLD)
has recovered most of earlier losses. Silver is down 0.15% at
$28.33 a pound. iShares Silver Trust (SLV) too has recovered most
of earlier losses.
Health Care SPDR (XLV) is slightly lower; iShares NASDAQ
Biotechnology Index (IBB) turned positive, as did Vanguard Health
Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH).
AspenBio Pharma (APPY) has hit new year lows after the company
priced an underwritten public offering of 6.1 million shares of
common stock at an offering price of $2 per share. The number of
shares and offering price reflect a one-for-six reverse stock split
implemented by the company to be effective on June 20.
Consumer Staples Select Sector SPDR (XLP) was down 0.6%; iShares
Dow Jones US Consumer Goods (IYK) was down 0.5%; and Vanguard
Consumer Staples ETF (VDC) was down 0.6%.
SPDR S&P Retail (XRT) turned positive; PowerShares Dynamic
Retail (PMR) is did too; but Market Vectors Retail ETF (RTH) was
Procter & Gamble (PG) was down 3%. It lowered its guidance
for Q4, now expecting EPS of $0.75 - $0.79, down from the prior
outlook of $0.79 - $0.85 EPS. Analysts polled by Capital IQ are
expecting $0.82 EPS. Organic sales growth is now expected to be in
the range of 2% - 3%, compared to a prior range of 4% - 5%. For
FY13, the company sees an organic sales increase in the range of 2%
- 4%. Core EPS is expected to be in-line to up mid-single digits
percentage versus FY12.
Meanwhile, with financials, Select Financial Sector SPDRs (
) was up 0.6%. Direxion Daily Financial Bull 3X shares (FAS) is up
1.6%. Its bearish counterpart, FAZ, is down 1.5%.
Among actives: Bank of America (BAC) has turned positive, as did
Goldman Sachs (GS). Morgan Stanley (MS) was down a bit. Citigroup
(C) was up 1.6%.
JPMorgan Chase & Co (JPM) was up 3.7%, outperforming other
stocks in the sector. A CNBC report earlier said the bank sold $25
billion of profitable securities to offset the $2 billion trading
losses relating to the bank's "London Whale." JPM CEO Jamie Dimon
disclosed the sale earlier this month, which resulted in $1 billion
in gains and would reduce the impact of the trading losses on the
bank's Q2 results, the report stated. It pointed out, however, that
the transaction would not create new value for investors but would
only shift gains from one part of the company's financial
statements to another.
Chimera Investment (CIM) was down 5%. In yesterday's after hours
session, the company's board of directors declared the second
quarter 2012 common stock cash dividend of $0.09 per common share.
This dividend is payable July 26, 2012, to common shareholders of
record on June 29, 2012. The company also announced that it has
estimated that as of March 31, 2012, its GAAP book value was $3.03
per share and its economic book value was $2.76 per share.