Mid-Day ETF Update: ETFs Track Stocks Higher as S&P Index Rises Above 1400; Hopes High for Possible Stimulus from Fed, ECB

By
A A A

Active broad-market exchange-traded funds at mid-day:

SPDR S&P 500 ( SPY ): +0.9%

iShares Russell 2000 Index ( IWM ): +1.5%

iShares MSCI Emerging Markets Index ( EEM ): +0.9%

Direxion Daily Small Cap Bear 3X Shares ( TZA ): -4.6%

Financial Select Sector SPDR ( XLF ): +1.2%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, continue to be largely firmer. Actively traded PowerShares QQQ (QQQ) is up 1.1%.

U.S. stocks continue to push higher, with the S&P index shooting past 1,400 for the first time since early May. The optimism in market sentiment is fueled by comments from Boston Fed President Eric Rosengren, a nonvoting member of the Federal Open Market Committee, who told The Wall Street Journal that he thinks the Federal Reserve should launch an open-ended bond-buying program. A spokesperson for German Chancellor Angela Merkel also reportedly confirmed support for an ECB bond-purchasing plan. Investors are also cheering mostly upbeat earnings reports as the earnings season comes close to winding down.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) is up 1.2%. Direxion Daily Financial Bull 3X shares (FAS) is up 3.1%. Its bearish counterpart, FAZ, is down 2.9%.

In corporate news, MAXIMUS (MMS) has hit new 52-week highs after it reported Q3 earnings of $0.62 per share, versus the Capital IQ consensus of $0.56. Revenues were $266.4 mln, versus the analyst estimate of $271.03 mln. The company expects FY12 EPS of $2.25 - $2.35, up from the prior guidance range of $2.20 - $2.30 and in line with the consensus of $2.25. Revenues are projected to be in the range of $1.03 bln - $1.06 bln, also in line with the $1.05 bln analysts are looking for.

StarTek (SRT) is down 2.5% after it reported a Q2 loss of $0.28 per share, ex one-time items, versus single analyst estimate on Capital IQ of $0.16 loss per share. Revenues were $44.4 mln, versus the average estimate from two analysts of $48.4 mln. In the same period last year, the company reported a loss of $0.40 on revenues of $57.14 mln.

Energy -

Dow Jones U.S. Energy Fund (IYE) is up 1.8% while Energy Select Sector SPDR (XLE) is up 1.8%.

Among stocks, FirstEnergy (FE) is down 1.3% after it reported Q2 earnings of $0.59 per share, ex one-time items, versus the Capital IQ consensus of $0.65. Revenues were $3.9 bln, versus the analyst estimate of $3.58 bln. In the same period last year, the company reported EPS of $0.69 on revenues of $4.1 bln. The company expects FY12 EPS of $3.30 - $3.60, in line with the consensus of $3.41.

Carrizo Oil & Gas (CRZO) is down near 1% after reporting Q2 earnings of $0.26 per share, ex one-time items, versus the Capital IQ consensus of $0.38. Revenues were $83.8 mln, versus the analyst estimate of $86.79 mln. In the same period last year, the company reported EPS of $0.24 on revenues of $54.1 mln. Production volumes during the quarter were 2,393 Mboe, an increase of 82 Mboe, or 4%, from the previous quarter's production of 2,311 Mboe.

Commodities -

Crude was up around 1.4%; natural gas was up 0.89%. United States Oil Fund (USO) is up 1.8%, while United States Natural Gas Fund (UNG) is up 0.7%.

Gold was down 0.07% while silver was up 0.76%. Among rare metal funds, SPDR Gold Trust (GLD) is flat and iShares Silver Trust (SLV) is up 0.52%.

Healthcare -

Healthcare and biotech ETFs are in mostly in positive territory: Health Care SPDR (XLV), down 0.083; iShares NASDAQ Biotechnology Index (IBB), up 0.4%; Vanguard Health Care ETF (VHT), up 0.2%; and iShares Dow Jones US Healthcare (IYH), up 0.14%.

In corporate news, Pfizer Inc. (PFE) is down 1.6% after it announced that it resolved U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) matters related to certain improper payments in the operations of two of its subsidiaries outside the United States, which Pfizer voluntarily reported to the U.S. government beginning in 2004. The company will enter into a deferred prosecution agreement with the DOJ, and pay a fine of $15 million. Under the terms of a civil settlement with the SEC, Pfizer Inc. agreed to a disgorgement of profits of $16 million and prejudgment interest of $10.3 million. The DOJ declined to bring a criminal action against Pfizer Inc. In a separate civil settlement also announced today with the SEC, Pfizer's Wyeth subsidiary has agreed to a disgorgement of profits of $17.2 million and prejudgment interest of $1.66 million to resolve issues involving certain improper payments in the operations of four subsidiaries outside the United States.

Zalicus (ZLCS) is up 9.8% after the company posted a better-than-expected Q2. The company's Q2 loss of $0.09 per share, was narrower than the Capital IQ consensus of $0.10 loss per share. Revenues were $2.9 mln, above the analyst estimate of $2.79 mln. In the same period last year, the company reported a loss of $0.11 per share on revenues of $1.8 mln.

CVS Caremark (CVS) is down 1.7%, after reporting Q2 EPS of $0.81, beating estimates by a penny. Revenue for the quarter came in at $30.7 billion. The Street was looking for $31.01 billion. The company says it now sees full-year adjusted EPS of $3.32 to $3.38, about in-line with the $3.33 Capital IQ consensus.

Consumer -

ETFs in the space are mixed: Consumer Staples Select Sector SPDR (XLP), down 0.3%; iShares Dow Jones US Consumer Goods (IYK), up 0.2% near year highs; and Vanguard Consumer Staples ETF (VDC), down 0.2%.

SPDR S&P Retail (XRT) is up 1.7% while PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) are also firmer, up 1% and 0.6% respectively. RTH has hit new year highs.

Fossil (FOSL) is up more than 30%, adding to pre-market gains of some 19%, following its Q2 report. The company posted Q2 earnings of $0.92 per share, which includes an unfavorable impact due to foreign currency and may not be comparable to the Capital IQ consensus of $0.79. In the prior year period, the company earned $0.80 per share. Revenues were $636.1 mln, up from $556.7 mln, and better than the analyst estimate of $635.09 mln. The company expects Q3 EPS of $1.15 - $1.17, ex non-recurring items, below the consensus of $1.38. It expects revenue growth of 15%. For Q4 the company anticipates an 18% increase in revenues. FOSL also lowered its outlook for FY12, now seeing EPS of $5.20 - $5.34, down from its prior guidance of $5.30 - $5.40, ex special items. The Street view is $5.32 EPS.

Crumbs Bake Shop (CRMB) continues to surge, now up more than 40% at $2.92 having earlier hit $3.57 after the company entered into an agreement with Starbucks Corporation (SBUX) to bring the full complement of Starbucks brewed coffees, teas and espresso-based drinks to all Crumbs locations. SBUX shares are up 3.6%.

Caribou Coffee Company (CBOU) is up near 6% after reporting Q2 earnings of $0.13, vs. the analyst consensus of $0.09 per share on Capital IQ. Sales were $81.1 mln, below expectations of $84.2 mln. For 2012, the company expects sales to be flat vs. 2011. EPS is seen at $0.43 to $0.46 per share. The Street is at $0.49 per share.

Tumi Holdings (TUMI) is up 20% after the company reported Q2 earnings of $0.18 per share, ex one-time items, above the Capital IQ consensus of $0.13. Revenues were $95.8 mln, above the analyst estimate of $92.93 mln. The company expects FY12 EPS of $0.67 - $0.70, ex non-recurring items, in line with the consensus of $0.67. It expects revenues of $390 mln - $395 mln also in line with the Street view of $390.07 mln.

Power Play -

Technology -

Tech ETFs continue to be firmer at mid-day: Technology Select Sector SPDR ETF (XLK) is up 0.91%. iShares Dow Jones US Technology ETF (IYW), up 1.4%; iShares S&P North American Technology ETF (IGM), up 1.4%; and iShares S&P North American Technology-Software Index (IGV), up 2%.

SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) are higher, up 3% and 2.5%, respectively.

SPDR S&P International Technology Sector ETF (IPK) is flat.

In corporate earnings news, Sirius XM Radio (SIRI) is up 5.5% and near year highs after it reported Q2 revenue of $838 mln, vs. the analyst consensus of $833 mln on Capital IQ and up from $744.3 mln in the year ago quarter. Net earnings were $0.48 per, up from $0.03 per share last year. The Street view was a gain of $0.02 per share, but this may not be comparable. For 2012, the company is guiding for net subscriber growth approaching 1.6 million, revenue approaching $3.4 billion, adjusted EBITDA of about $900 million, and free cash flow of about $700 million.

Nuance Communications (NUAN) is down 1.8%, reversing earlier gains of some 4% after it reported Q3 earnings of $0.45 per share, above the Capital IQ consensus of $0.39. In the same period last year, the company reported EPS of $0.35. Revenues were $448.2 mln, up 29.9% from $345.1 mln in the same period a year ago. This includes revenue lost to accounting treatment in conjunction with acquisitions, and may not be comparable to the analyst estimate of $438.45 mln.

Leap Wireless International (LEAP) is down 20% and hit year lows. In Monday's evening session, the company reported Q2 2012 revenues of $786.8 million, versus $760.5 million for the comparable period in 2011, and a loss of $0.54 per share, compared to $0.85. The Capital IQ analyst consensus anticipated an EPS loss of $0.51 on revenue of $839.33 million.

BroadSoft (BSFT) is higher, now up 35%. Late yesterday, it reported Q2 revenue of $40.5 mln, better than the analyst consensus of $37.5 mln on Capital IQ. EPS was $0.33, vs. expectations of $0.21. For Q3, BroadSoft anticipates revenue of $40 to $42 mln, inclusive of about $0.5 mln in revenue from a partial-quarter contribution from the Adaption acquisition. The company also expects to achieve earnings on a non-GAAP basis of $0.27 to $0.33 per diluted common share which includes expected dilution from the Adaption acquisition of approximately $0.02 per share. The Street is at $40 mln in revenue and EPS of $0.31. For FY12, BroadSoft expects revenue of $162 to $167 mln which includes about $1.3 mln in contribution from the Adaption acquisition. The company anticipates full year 2012 earnings on a non-GAAP basis of $1.30 to $1.40 per diluted common share, which includes expected dilution of about $0.04 per share for the Adaption acquisition. Analysts expect revenue of $161.8 mln and EPS of $1.25.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: EEM , IWM , SPY , TZA , XLF

MT Newswires

MT Newswires

More from MT Newswires:

Related Videos

Stocks

Referenced

Most Active by Volume

36,586,989
  • $41.35 ▼ 2.29%
33,435,019
  • $42.20 ▼ 10.86%
31,919,424
  • $9.72 ▼ 8.30%
30,045,396
  • $26.49 ▼ 1.41%
29,014,873
  • $8.05 ▼ 8%
27,308,018
  • $14.66 ▼ 8.32%
23,704,242
  • $118.93 ▼ 0.06%
23,514,654
  • $17.04 ▼ 0.41%
As of 11/28/2014, 01:06 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com