Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 (
iShares MSCI Emerging Markets Index (
PowerShares QQQ Trust, Series 1 (
Financial Select Sector SPDR (
iShares Russell 2000 Index (
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and
others, continue to trade lower. Actively traded PowerShares QQQ (
) is down 0.2%.
U.S. stocks continue to slip, pushed farther into negative
territory as Spanish 10-year debt yields increased to what are
regarded as unsustainable levels, up past 7%. Finance ministers in
the Eurozone reportedly met to discuss Spain's eligibility for
leeway in meeting deficit targets in exchange for more savings
measures. Investors are now looking ahead to upbeat corporate news
as the earnings season kicks off with Alcoa (AA) due to report its
results after the close.
Winners and Losers
Select Financial Sector SPDRs (
) is down 0.4%. Direxion Daily Financial Bull 3X shares (FAS) is
down 1.3%. Its bearish counterpart, FAZ, is up 1.3%.
Actives in the sector continue to trade lower: Bank of America
(BAC) down 1%; Goldman Sachs (GS), down 1.2%; Morgan Stanley (MS),
down 1.7%; and Citigroup (C), down 1.4%.
Barclays PLC ADRs (BCS) are down 0.6% following a report on the
Sunday Times that the company is considering splitting off its
investment banking arm, which was known as Barclays Capital, and
having it listed in New York, while the remaining portion of the
company would continue to be listed in London. BCS had denied that
the split was being considered by its board, but insiders at the
company said that the plan was being studied, the report added.
FX Alliance (FX) continues to trade higher, now up 40% to the
new 52-week high of $22.05 after the company announced that it
agreed to be acquired by Thomson Reuters (TRI) for $22 per share in
cash. Technology Crossover Ventures, FX's largest shareholder, Phil
Weisberg, the company's chairman and CEO and John Cooley, CFO, who
collectively own approximately 32.5% of FX's outstanding shares,
have each agreed to tender their shares into the offer. TRI shares
are down 0.2%, but above day lows.
Tech actives are mostly lower: Apple (AAPL), up 1.3%; Microsoft
(MSFT), down 0.7%; Intel (INTC), down 0.2%; Google (GOOG), down
0.1%; Cisco (CSCO), down 0.7%; Yahoo (YHOO), flat%.
Microsoft (MSFT) has acquired Perceptive Pixel, a company
focused in research, development and production of large-scale,
multi-touch display solutions. Perceptive Pixel is the developer
behind the multi-touch software, Storyboard. It was one of the
first to develop large-scale, unlimited multi-touch devices that
became popular during the 2008 U.S. presidential elections. The
acquisition is seen as a move by Microsoft to strengthen its
hardware development in preparation for a possible release of its
Terms of the transaction were not disclosed.
Himax Technologies (HIMX) is up 0.5%, reversing earlier losses,
after saying it expects Q2 revenue of $189.5 mln, below the analyst
consensus of $194.1 mln on Capital IQ. Earnings per ADS is seen at
about $0.089, vs. expectations of $0.09.
Samsung Electronics Co. has won an intellectual property ruling
against Apple Inc. (AAPL) as a U.K. judge said the Galaxy tablet
isn't "cool" enough to be confused with the design for the iPad,
Bloomberg reports. The Galaxy tablet doesn't infringe Apple's
registered design, Judge Colin Birss reportedly said in a ruling in
London. He said that consumers weren't likely to get the two tablet
computers mixed up.
ETFs in the space are mostly weaker: iShares Dow Jones US
Technology ETF (IYW), down 0.5%; Technology Select Sector SPDR ETF
(XLK), down 0.3%; and iShares S&P North American Technology ETF
(IGM), down 0.7%; iShares S&P North American
Technology-Software Index (IGV) is down 1.5%.
SPDR S&P Semiconductor (XSD) is down 1.5% and Semiconductor
Sector Index Fund (SOXX) is down 1.1%. SPDR S&P International
Technology Sector ETF (IPK) is down 1.4%.
Dow Jones U.S. Energy Fund (IYE) is down 0.5%; Energy Select
Sector SPDR (XLE) is down 0.5%.
MFC Industrial (MIL) is up 2.6% after announcing that it will
acquire all of the issued and outstanding common shares of Compton
Petroleum by way of a take-over bid for cash consideration of $1.25
per share or for approximately $33 million. The companies also
signed a equity private placement agreement for gross proceeds of
approximately $8.2 million.
Chesapeake Energy (CHK) is down 0.9% after announcing that it
has completed the sale of its interests in Chesapeake Midstream
Partners, L.P. (CHKM) to funds managed by Global Infrastructure
Management, LLC. The sale closed in two separate transactions and
resulted in aggregate proceeds of $2 billion in cash. The interests
sold by the company in the transaction consisted of about 33.7
million common units representing limited partner interests in
CHKM, 34.54 million subordinated units representing limited partner
interests in CHKM and the company's 50% interest in Chesapeake
Midstream Ventures, L.L.C., the sole member of Chesapeake Midstream
GP, L.L.C., the general partner of CHKM. CHKM is flat.
Crude is up 1.18%; natural gas is up 3%. Among ETFs, United
States Oil Fund (USO) is up 2% while the United States Natural Gas
Fund (UNG) is up 3.2%.
Gold is up 0.59%; silver, up around 1.62%. Among rare metal
funds, SPDR Gold Trust (GLD) is up 0.4%; iShares Silver Trust (SLV)
is up 1.3%
Consumer Staples Select Sector SPDR (XLP) is down 0.2%. iShares
Dow Jones US Consumer Goods (IYK) is down 0.1% while Vanguard
Consumer Staples ETF (VDC) is down 0.3%.
SPDR S&P Retail (XRT) is down 0.4%; PowerShares Dynamic
Retail (PMR), down 0.84%; and Market Vectors Retail ETF (RTH), down
0.2%, having earlier touched year highs.
Sirius XM Radio (SIRI) is up 1.5% after saying it added 622,042
net subscribers in Q2 of 2012, up 38% from 452,147 net subscribers
added in the second quarter of 2011. The company has added over
1million net subscribers in the first half of 2012. At June 30,
2012, the company had over 22.9 million subscribers. The company
also increased its full year 2012 subscriber and revenue guidance.
SiriusXM now expects its net new subscriber growth to approach 1.6
million and revenue to approach $3.4 billion in 2012. Adjusted
EBITDA guidance of $875 million and free cash flow guidance of $700
million remain unchanged. The Street view for full year revenue is
$3.36 billion, according to Capital IQ.
Campbell Soup Company (CPB) is down 0.85% after it announced
that it entered into an agreement to acquire Bolthouse Farms from a
fund managed by Madison Dearborn Partners, LLC, a private equity
firm, for $1.55 billion in cash.
Power Play -
ETFs are seeing gains in mid-day action, bucking the downward
movement of the broader market: Health Care SPDR (XLV) is up 0.5%;
iShares NASDAQ Biotechnology Index (IBB), up 0.4%; Vanguard Health
Care ETF (VHT), up 0.5%; and iShares Dow Jones US Healthcare (IYH),
Amerigroup (AGP) is up 38% at new 52-week highs after WellPoint
(WLP) acquired the managed care company for $92.00 per share in
cash, or approximately $4.9 billion. The transaction is expected to
be accretive to WLP's earnings per share in 2013, including
one-time transaction and integration costs. Accretion is expected
to increase in 2014 and exceed $1.00 per share by 2015, inclusive
of the build out costs associated with the expanding dual eligible
and reform-driven Medicaid opportunities. WLP is not changing its
2012 EPS guidance for this transaction. WLP shares are up 3.5%.
BioLineRx (BLRX) is up 6% following its announcement that it
received from the European Patent Office a notice of intention to
grant a European patent claiming the salt of BL-1020, a
first-in-class orally available treatment for schizophrenia. In
March 2012, the company announced that a European patent was
granted claiming BL-1020's composition and its use for the
treatment of schizophrenia, which will be valid through September
2022. The current patent, when granted, will be valid through June
2026, thereby effectively extending the patent protection term of
the drug product in Europe by almost four years. Member patents of
this family are pending in the U.S., Japan, India, China, Korea,
Mexico, Israel and Australia.
Other Medicaid insurers are also logging gains: Centene (CNC),
up 20%; WellCare Health Plans (WCG), up 17.3%; and Molina
Healthcare (MOH), up 18.5%.