Mid-Day ETF Update: Broad Market ETF's Gain on Optimism Over Economy, Financials Strong
Active broad market exchange-traded funds in Tuesday's regular session:
SPDR S&P 500 ( SPY ): +0.83%
iShares MSCI Japan Index Fund ( EWJ ) +0.46%
iShares MSCI Emerging Markets Index ( EEM ): +0.77%
iShares MSCI EAFE Index Fund ( EFA ) +0.21
iPath S&P VIX Short Term Futures ( VXX ) +0.27%
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and others, were advancing at mid-day. Actively traded PowerShares QQQ (QQQ) is up 0.66%.
U.S. market indices are all higher at mid-day on optimism over the economy, with the National Federation of Independent Business's optimism index showing confidence among small companies at a six-month high in April. A separate report showed U.S. import prices fell 0.5% in April, in line with economists' expectations, according to a MarketWatch poll. Excluding fuel, import prices slipped 0.1% in April. Banking stocks got a boost from comments from hedge fund manager David Tepper saying U.S. banks were "a good sector."
Winners and Losers
Select Financial Sector SPDRs (XLF) was up 1.35%. Direxion Daily Financial Bull 3X shares (FAS) is up 3.76%. Its bearish counterpart, FAZ, is down 3.78%.
Among financial stocks, IBERIABANK (IBKC) has named H. Spurgeon Mackie, Jr. as its new chief credit officer, replacing Gregg Strader, who has left the company to spend more time with his family in North Carolina. The shares were up 1.28%.
Bank of America (BAC) was up 2.54% and hit a two-year high of $13.32 after Appaloosa Management's David Tepper said he is bullish on the US banking sector.
Dow Jones U.S. Energy Fund (IYE) was up 1.08% and Energy Select Sector SPDR (XLE) gained 1.2%.
In sector news, Public Service Enterprise Group (PEG) will take over management of Long Island Power Authority's operations next year after a contract with National Grid, which partially runs the operations, expires this year, according to multiple media reports. Hurricane Sandy in October left more than 90% of the 1.1 million LIPA customers on Long Island without power, some for more than two weeks, and lawmakers faulted the operations run by National Grid. The shares were up 0.6%.
Crude futures slipped below $95 a barrel following comments from the International Energy Agency, which said the U.S.'s stronger oil production could outpace the demand in high growing emerging markets. Crude for June delivery was down 0.35%; July natural gas was up 1.5%. United States Oil Fund (USO) was down 0.14%. United States Natural Gas Fund (UNG) was up 1.46%.
June gold was down 0.47% and silver for July delivery was down 1.23%. Among rare metal funds, SPDR Gold Trust (GLD) was down 0.19%; iShares Silver Trust (SLV) was down 0.83%.
In stocks news, Pan American Silver Corp. (PAAS) Board of Directors has approved the second quarterly cash dividend of 2013 in the amount of $0.125 per common share. The cash dividend will be distributed on or about Wednesday, June 5, 2013 to holders of record of common shares as of the close of business on Friday, May 24, 2013. The shares were off 0.79%.
Healthcare ETFs Health Care SPDR (XLV), Vanguard Health Care ETF (VHT), and iShares Dow Jones US Healthcare (IYH) were all showing gains of just under 1%. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 1.32%.
In corporate news, Response Genetics, Inc. (RGDX) reported first quarter 2013 net loss of $0.8 million, or $0.03 per share, on revenues of $5.6 million. Analysts expected loss per share of $0.04 and revenues of $4.9 million. In the same period last year, net loss was $3.1 million, or $0.14 per share, on revenues of $3.98 million. Its shares are down 1.6%, close to their lows for the session.
Consumer ETFs Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were all higher.
In sector news, Tesla (TSLA), the electric car maker, was up 0.9% at $88.58, backing off earlier gains that took it to a new 52-week top of $97.12, adding to the previous session's gains of over 14%. The stock continues to bask in the in the afterglow of last week's expectations-busting quarterly results. Last Wednesday Tesla posted its first quarterly profit, besting the analyst consensus. The company reported adjusted Q1 EPS of $0.12 which was three times analyst estimates and it also posted sales of $562 million, also above consensus.
Power Play - NASDAQ Clean Edge Green Energy Index Fund (QCLN) which includes Tesla stock was up 0.74%.
Tech ETFs Technology Select Sector SPDR ETF (XLK), iShares Dow Jones US Technology ETF (IYW) and iShares S&P North American Technology ETF (IGM) were showing modest gains, while iShares S&P North American Technology-Software Index (IGV) was up 1.1%.
Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were also higher. SPDR S&P International Technology Sector ETF (IPK) was up 0.7%.
In sector news, Take-Two Interactive Software (TTWO) was up 4.5% and earlier set a year high of $17.54 after it posted Q4 non-GAAP EPS of $0.38 and continuing operations EPS of $0.23, versus the Street consensus of $0.23. Revenues were $303 million. Revenue was $303 million, vs. the Cap IQ consensus of $279 million. The company also guides for Q1 EPS at loss of $0.70 to $0.55, versus the Street's expected loss of $0.09, with revenues seen at $100-$125 million, versus Street's $195 million. For FY 2014, the company sees EPS at $2.05-$2.30, vs. the Street at $2.24; with revenues seen at $1.75-$1.85 billion, vs. the Street at $1.77 billion.