Referenced Stocks

Mid-Day ETF Update: ETFs Weaker as Stocks Fail to Hold on to Gains; Unexpected Drop in Factory Orders, Economic Concerns Weigh

By Midnight Trader June 04, 2012, 01:02:06 PM EDT

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

SPDR S&P 500 ( SPY ): -0.6%

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.2%

Financial Select Sector SPDR ( XLF ): -1.2%

iPath S&P 500 VIX Short Term Futures ( VXX ): -0.1%

iShares MSCI Emerging Markets Index ( EEM ): -0.05%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are mostly lower. Actively traded PowerShares QQQ ( QQQ ) is down 0.2%.

U.S. stocks are edging lower at session's half, failing to hold on to pre-bell gains. Casting a shadow over the markets are fears of a further economic slowdown -- stemming from the fact that factory orders for April declined 0.6%, missing economists' estimates for a rise of 0.1%, according to a Market Watch poll. Earlier, China reported a disappointing non-manufacturing PMI reading that declined from the previous month. Tech stocks are firmly in the red despite the videogame industry's annual E3 conference, unable to shake off the impact of declining retail sales.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) is down 1.3%. Direxion Daily Financial Bull 3X shares (FAS) is down 3.4%. Its bearish counterpart, FAZ, is up 3.4%.

Among actives: Bank of America (BAC) is down 1.7%, Goldman Sachs (GS) is down 1.9%; Morgan Stanley (MS) is down 3.3%, Citigroup (C) is down 2.7%.

Regions Financial (RF) is down 4.5% after it was downgraded to Hold from Buy at Deutsche Bank.

Technology -

ETFs and shares in this space are weaker, even as the videogame industry holds its annual E3 conference. Declining of sales have hurt videogame console manufacturers and game developers alike, and despite the conference, tech stocks are slipping into negative territory, with some hitting fresh year lows: Groupon (GRPN), down 8% at $8.90, having hit a year low of $8.85; Facebook (FB), down 3.4% at $26.79, after hitting the new year low of $26.57; Zynga (ZNGA), down 3.83%, off the new year low of $5.76; and Research in Motion (RIMM), down 6.2% at $9.62, just above the new 52-week low of $9.61.

Among tech actives: Apple (AAPL) is down 1.4%; Microsoft (MSFT) is down 0.07%; Intel (INTC) is down 1%; Google (GOOG) is up 0.3%; Cisco (CSCO) is up 0.09%; Yahoo (YHOO) is down 0.3%.

Salesforce.com (CRM) is down 1.7% after it entered into a definitive agreement to acquire Buddy Media, for approximately $689 million payable in cash and salesforce.com equity. The transaction is expected to be completed during salesforce.com's fiscal third quarter ending October 31, 2012.

Facebook (FB) is down 3.28% to $26.81, after hitting a new low of $26.57. Shares were initiated at Underperform by Bernstein. The firm set a price target of $25 per share.

In the ETF space, iShares Dow Jones US Technology ETF (IYW) is down 0.8%; Technology Select Sector SPDR ETF (XLK) is down 0.4% and iShares S&P North American Technology ETF (IGM) is down 0.55%. iShares S&P North American Technology-Software Index (IGV) is down 0.75%.

SPDR S&P Semiconductor (XSD) is down 1.20% and Semiconductor Sector Index Fund (SOXX) is down 1.10%.

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

Energy -

Dow Jones U.S. Energy Fund (IYE) is down 1.26% while Energy Select Sector SPDR (XLE) is down 1.42%.

SandRidge Energy (SD) is down 4.5%, above a day low $5.55 but reversing earlier gains of some 2% after it said that it has closed the sale of its non-core tertiary assets to a private party for cash proceeds of $130 million. The divested properties are located in West Texas and currently produce approximately 1,100 Boe per day.

Chesapeake Energy (CHK) is up 4.7% after it disclosed this morning that extensive discussions with its two largest shareholders, Southeastern Asset Management and Carl C. Icahn and his affiliated entities, who own, respectively, approximately 13.6% and 7.6% of the company's common stock, Chesapeake has agreed to a plan to reconstitute its Board of Directors by adding four new independent directors to replace four existing independent directors who will resign from the Board upon the appointment of the new directors.

LRR Energy (LRE) is down 0.9% at $13.62, just above its new 52-week low of $13.50, after the company revised guidance for full year 2012, forecasting production to average 5,900 - 6,300 Boe per day; LOE on a Boe of production basis to average $9.25 - $9.75. LRR Energy expects to spend approximately $25.7 million of total capital expenditures on the development of its oil and natural gas properties in 2012, including approximately $19.8 million of maintenance capital expenditures. The company said it expects to spend the remaining $5.9 million of estimated expenditures primarily on cost cutting projects. On a go forward basis, it expects annual maintenance capital expenditures to be $21.0 million.

Commodities -

Crude is down 0.32% at $82.96 a barrel. United States Oil Fund (USO) is down 0.29% at 31.34.

Gold is down $8.10 at $1,614 an ounce. SPDR Gold Trust (GLD) is down 0.19% at 31.36. Silver is down 1.87% at $27.97 a pound. iShares Silver Trust (SLV) is down 1.30% at 27.26.

Consumer -

Consumer Staples Select Sector SPDR (XLP) is down 0.30%; iShares Dow Jones US Consumer Goods (IYK) is down 0.92%; and Vanguard Consumer Staples ETF (VDC) is down 0.32%.

SPDR S&P Retail (XRT) is down 1.01%, PowerShares Dynamic Retail (PMR) is down 0.58% and Market Vectors Retail ETF (RTH) is down 0.17%.

AutoNation (AN) is currently little changed after gaining nearly 6% in pre-market trading, when it reported that retail new vehicle unit sales in May 2012 were 23,763, a 45% increase from a year ago. For the company's operating segments were 7,260 for domestic, up 21% versus May 2011; 12,300 for Import, up 78% versus May 2011; and 4,203 for Premium luxury, up 23% versus May 2011.

Power Play -

Healthcare -

Health Care SPDR (XLV) is down 0.28%; iShares NASDAQ Biotechnology Index (IBB) is down 0.85%; Vanguard Health Care ETF (VHT) is down 0.35%; and iShares Dow Jones US Healthcare (IYH) is down 0.42%.

ImmunoGen (IMGN) is flat, trimming earlier gains of more than 10% after presenting positive clinical data for its investigational compound, SAR3419, at an oncology conference. SAR3419 is a potential treatment for CD19+ non-Hodgkin's lymphoma (NHL) and other B-cell malignancies. The data reported today are from the Phase I evaluation that established the dosing schedule being used with SAR3419 in its Phase II evaluation.

Auxilium Pharmaceuticals (AUXL) is up 12% after it announced positive top-line results from its IMPRESS (The Investigation for Maximal Peyronie's Reduction Efficacy and Safety Studies) trials, the phase III studies that assessed XIAFLEX (collagenase clostridium histolyticum or CCH), a novel, in-office, first-in-class biologic therapy for the potential treatment of Peyronie's disease (PD).




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.


This article appears in: Investing, Commodities

Referenced Stocks: EEM, QQQ, SPY, VXX, XLF



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