Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 (
iShares Russell 2000 Index (
iShares MSCI Emerging Markets Index (
Direxion Daily Small Cap Bear 3X Shares (
Financial Select Sector SPDR (
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
Select Financial Sector SPDRs (
) 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.
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.
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 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.
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
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
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 -
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
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
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.