Referenced Stocks

Mid-Day ETF Update: ETFs Weaker, Stocks Touch Session Lows on Earnings Woes, Barofsky Comments Vs. Tarp

By Midnight Trader October 10, 2012, 01:11:18 PM EDT

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

SPDR S&P 500 ( SPY ): -0.69%

Financial Select Sector SPDR ( XLF ): -0.28%

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.5%

iShares MSCI Emerging Markets Index ( EEM ): -0.73%

iShares Russell 2000 Index ( IWM ): -0.36%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are weaker. Actively traded PowerShares QQQ ( QQQ ) is down 0.5%.

U.S. stocks are lower, touching session lows in mid-day action, weighed down by concerns on corporate earnings after Alcoa (AA) lowered its outlook for global metal demand despite an earnings beat. Chevron (CVX) also issued a warning on lower-than-expected earnings. Neil Barofsky's criticism of the government's Troubled Asset Relief Program (TARP), which he called a "double-edged sword", is also souring market sentiment.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) is down 0.3% from near year highs. Direxion Daily Financial Bull 3X shares (FAS) is down 0.65%. Its bearish counterpart, FAZ, is up 1%.

Among financial actives, Progressive Corporation (PGR) is up 2.2%, adding to pre-market gains of more than 1%, after the company earlier reported Q3 earnings of $0.46 per share, versus the Capital IQ GAAP consensus of $0.34. Revenues were $4.24 mln, versus the analyst estimate of $4.16 mln. In the same period last year, the company reported EPS of $0.24 on revenues of $3.87 bln.

Technology -

Tech ETFs are slipping lower: Technology Select Sector SPDR ETF (XLK), down 0.5%; iShares Dow Jones US Technology ETF (IYW), also down 0.5%; iShares S&P North American Technology ETF (IGM), down 0.71%; and iShares S&P North American Technology-Software Index (IGV), down 0.6%.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) is down 1.3% and Semiconductor Sector Index Fund (SOXX) down 1.1%. SPDR S&P International Technology Sector ETF (IPK) is flat.

In sector news, OCZ Technology Group (OCZ) is down near 40% and has hit new year lows after saying it contracted the U.S. Securities and Exchange Commission asking to extend its filing deadline for its fiscal Q2 ended Aug. 31 because its financial statements are under review. The maker of data-storage devices said it will report a "significant" Q2 net loss and negative gross margins for the period. It also named board member Ralph Schmitt as CEO and president, effective immediately. He replaces Alexander Cy Mei, the company's chief marketing officer who has been serving as interim chief exectuive at OCZ.

Energy -

Dow Jones U.S. Energy Fund (IYE) is down 1.9%; Energy Select Sector SPDR (XLE) is down 1.8%.

In sector news, Chevron (CVX) is down 4.3% after saying Q3 earnings would be "substantially lower" than Q2 with oil production declining during the first two months of the quarter and the company receiving a lower price from the sale of oil. CVX said production took a hit from an August fire at its refinery in Richmond, Calif., and disruptions from Hurricane Isaac.

Commodities -

Crude was up 0.39% while natural gas is down 0.84%. United States Oil Fund (USO) has turned negative and is now down 0.6%. United States Natural Gas Fund (UNG) has done the opposite, turning positive and now up 0.2%. United States Gasoline Fund, LP (UGA) is up 0.44% and earlier touched a new year high.

Gold was down 0.11% and while silver was down 0.16%. Among rare metal funds, SPDR Gold Trust (GLD) is now up 0.05%; iShares Silver Trust (SLV) is up 0.05%.

Healthcare -

Healthcare ETFs Health Care SPDR (XLV), down 0.9%; Vanguard Health Care ETF (VHT), also down 0.9%; and iShares Dow Jones US Healthcare (IYH), down 0.8%. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is down 1.2%.

In corporate news, OraSure Technologies Inc. (OSUR) is up 3.9% after announcing the availability of the OraQuick In-Home HIV Test at retailers nationwide and online. The company says this is the first rapid infectious disease test ever to be made available directly to consumers for in-home use.

Power Play -

Consumer -

Consumer ETFs are mostly up: Consumer Staples Select Sector SPDR (XLP), now slightly down, away from near year highs; iShares Dow Jones US Consumer Goods (IYK), down 1.2%; and Vanguard Consumer Staples ETF (VDC), now down 0.1%.

Retail ETFs are firmer: SPDR S&P Retail (XRT), now 0.2% lower; PowerShares Dynamic Retail (PMR), up 0.08%; and Market Vectors Retail ETF (RTH), up 0.2% having hit a new year high.

In sector news, Yum! Brands Inc. (YUM) is up 8.5%, adding to gains of some 3% in Tuesday's after hours session, after the company reported adjusted Q3 earnings of $0.99 a share, beating analyst expectations and also topping the year-ago $0.83 gain. Revenue for the period was $3.56 billion. Analysts, on average, were expecting a $0.97 a share profit on $3.64 billion in revenue for the quarter. YUM also raised its FY12 EPS guidance to at least $3.24, excluding special items. The Street currently is at $3.26 a share.




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, IWM, QQQ, SPY, XLF



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