Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 (
SPY
): -0.58%
iShares Russell 2000 Index (
IWM
): -0.27%
iShares MSCI Emerging Markets Index (
EEM
): -0.87%
iPath S&P 500 VIX Short Term Futures TM (
VXX
): +1.22%, still near 52-week low
PowerShares QQQ Trust, Series 1 (
QQQ
): -0.67%
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and
others, are weaker but maybe off day lows. Actively traded
PowerShares QQQ (
QQQ
) is down 0.67%.
U.S. stocks are weaker, slipping below the 13,000 level, with
sentiment not helped by the Institute for Supply Management
reporting that the August manufacturing index contracted to 49.6
from 49.8 last month, below economists' forecasts. In a separate
report, construction spending unexpectedly declined by 0.9% in
July, while market expectations were for a 0.4% increase. Stocks
are tracking markets in Europe, where economic releases also
disappointed in the shape of PMI readings out of Germany, France,
and Italy. Investors, in the meantime, are looking ahead to
Thursday's meeting of European Central Bank policy makers in the
hope that they will provide specific details on moves to stimulte
the economy in that region. Traders and investros also await August
nonfarm-payrolls data, due out this Friday, as the health of the
U.S. economy -and particulary jobs - becomes a key theme of this
year's Presidential race.
Winners and Losers
Financial -
Select Financial Sector SPDRs (XLF) is down 0.33%; Direxion
Daily Financial Bull 3X shares (FAS) is down 0.27%. Its bearish
counterpart, FAZ, is up 0.4%.
In financial news, American International Group (AIG) is now
free to sell its remaining 18.6% stake in its Hong Kong-based AIA
after a two-year lockup period expires today. CEO Robert Benmosche
previously has suggested the insurer could sell the AIA stake,
although he hasn't specified a price or when, according to a
Reuters report. Shares are up 1% at around $34.65 after hitting a
new year high of $35.36.
Technology -
Tech ETFs Technology Select Sector SPDR ETF (XLK), down 0.46%;
iShares Dow Jones US Technology ETF (IYW), down 0.53%; iShares
S&P North American Technology ETF (IGM), down 1%; and iShares
S&P North American Technology-Software Index (IGV), down
0.49%.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) is
flat while Semiconductor Sector Index Fund (SOXX) is down
1.46%.
SPDR S&P International Technology Sector ETF (IPK) is down
2.55%.
In sector news, NetSol Technologies (NTWK) is up 5.63% after
posting Q4 per-share earnings of $0.25, reversing a $0.19 per share
net loss last year. Analysts were forecasting a $0.28 a share gain
for the financial software firm although those estimates may not be
comparable to NTWK's results. Revenues surged 107% from year-ago
levels to $14.3 million, easily beating the analyst consensus of
$11.73 million. Looking forward, NTWK is maintaining its FY13 EPS
guidance of $0.80 to $1.00, which may not compare to the Capital IQ
consensus of $0.72 a share. Revenues are seen in a range of $46
million to $49 million, or at least $2.08 above consensus.
Energy -
Dow Jones U.S. Energy Fund (IYE) is down 1.2%; Energy Select
Sector SPDR (XLE) is down 1.26%.
In sector news, Heckmann Corporation (HEK) continues to firm up,
now up 25% after it entered into a definitive agreement with Power
Fuels, a privately held North Dakota-based environmental services
provider. The merger is expected to be highly accretive to
Heckmann's earnings per share and is expected to close in the
fourth quarter of 2012.
Commodities -
Crude was up 0.63%; natural gas was up 3.15%. United States Oil
Fund (USO) is down 1%. United States Natural Gas Fund (UNG) is up
2.2%.
Gold and silver for December delivery were higher, up 2.26% and
5.58% respectively. Among rare metal funds, SPDR Gold Trust (GLD)
is down 0.07% while iShares Silver Trust (SLV) is up 1.6%.
Consumer -
Consumer ETFs are mixed: Consumer Staples Select Sector SPDR
(XLP), up 0.32% to near year highs; iShares Dow Jones US Consumer
Goods (IYK), down 0.19%; and Vanguard Consumer Staples ETF (VDC),
up 0.12%
Retail ETFs are lower: SPDR S&P Retail (XRT), down 0.11%;
PowerShares Dynamic Retail (PMR), down 0.2%; and Market Vectors
Retail ETF (RTH), down 0.29% but earlier hit a new year high of
$44.33.
In sector news, Seven Arts Entertainment Inc. (SAPX) is now down
20%, after reaching a new 52-week high of $1.40 earlier. The
company today confirmed its 1-for-70 reverse split of its common
stock that was effective immediately after the close of the markets
on Friday.
Power Play -
Healthcare -
Healthcare ETFs Health Care SPDR (XLV), down 0.10% from near
year highs; Vanguard Health Care ETF (VHT), down 0.03% from near
year highs; and iShares Dow Jones US Healthcare (IYH), up 0.02% at
near year highs. Biotech ETF iShares NASDAQ Biotechnology Index
(IBB) is up 0.7%.
In M&A news in the sector, Valeant Pharmaceuticals (VRX) is
up 15% and has hit new year highs after it announced that it
acquired Medicis Pharmaceutical (MRX) for $44.00 per share in cash.
The transaction values MRX's common stock at about $2.6 billion and
represents a 39% premium to MRX's closing share price on Friday,
August 31, the last trading day prior to announcement, and a 31%
premium to the three-month average trading price. VRX expects the
transaction to be immediately accretive to its cash earnings per
share. The combination of the two companies is also expected to
yield cost synergies at an annual run rate of at least $225 million
within six months of closing. MRX shares are up 38% and have
reached a new year high of $43.64.