Mid-Day ETF Update: ETFs, Stocks In the Red on Mixed Earnings
Active broad-market exchange-traded funds in Wednesday's regular session:
SPDR S&P 500 ETF Trust ( SPY ): -.48%, but with a new 52-week high.
iPath S&P 500 VIX Short Term Futures TM ( VXX ): +2.00%, with a new 52-week low.
iShares MSCI Emerging Markets Index ( EEM ): -1.83%
Select Financial Sector SPDRs ( XLF ): -0.77%, but still near 52-week highs
PowerShares QQQ Trust, Series 1 ( QQQ ): -0.79%, near 52-week high
Broad Market Indicators
Most broad-market exchange-traded funds, including SPY, IWM, IVV and others, tumbled into negative territory despite most of them touching 52-week highs. Actively traded PowerShares QQQ ( QQQ ) was down 0.79%, but still near its 52-week high.
U.S. stocks were also weaker, dragged by mixed results from major companies reporting their earnings. Caterpillar (CAT) reported disappointing Q3 results, while Boeing (BA) led gainers with its better-than-expected report. In economic data, the Labor Department said import prices rose 0.2% in September, while export prices, ex agriculture, inched up 0.3% after an unchanged prior reading. The Federal Housing Finance Agency reported a seasonally adjusted 0.3% gain for home prices in September.
Power Play: Healthcare
Healthcare ETFs and stocks are mostly lower but outperforming the broader market. Health Care SPDR (XLV) was down 0.21%; Vanguard Health Care ETF (VHT), was down 0.26%; and iShares Dow Jones US Healthcare (IYH), was down 0.50% - all reached new 52-week hgihs. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 0.04%.
Among stocks, Repros (RPRX) tumbled more than 30% after disclosing FDA guidance it received for its clinical program for Androxal, a potential treatment for low testosterone in men. Among the FDA determinations were instructions for Repros to request a meeting to discuss the adequacy of its studies for efficacy; consideration of label claims; and a new requirement for one year exposure for men up-titrated to high dose in a DEXA study. The company now guides for a second-half 2014 NDA submission.
Winners and Losers
Select Financial Sector SPDRs ( XLF ) was down 0.77%, but still near its 52-week high. Direxion Daily Financial Bull 3X shares (FAS) hit a new 52-week high but was down 2.08% at last check; its bearish counterpart, FAZ, also sank to a new 52-week low, but was up about 2%.
Among financial stocks, Xoom (XOOM) was down 7.27% after the online international money transfer services provider reported late Tuesday Q3 revenue of $32.3 million, with non-GAAP EPS of $0.06. The company expects revenue to be between $30.2 million and $31.2 million and non-GAAP diluted net loss per share to be in the range of $0.03 to $0.01. For 2013, the company expects revenue to be between $120.3 million and $121.3 million and non-GAAP diluted net income per share to be in the range of $0.18 to $0.21. Analysts expect $0.12 in earnings for 2013.
Technology Select Sector SPDR ETF (XLK) was down 0.66%, but with a new 52-week high of $33.32. Other tech ETFs - iShares Dow Jones US Technology ETF (IYW) and iShares S&P North American Technology ETF (IGM) also touched 52-week highs but were weaker. iShares S&P North American Technology-Software Index (IGV) was down 1.05%.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) saw sharp losses, down 3.67% and 3.19%, respectively. SPDR S&P International Technology Sector ETF (IPK) was down 0.48%, but logged a new 52-week high of $30.79.
In sector news, Corning (GLW) was up 11.27%, with a new 52-week high of $18.07 after it said Tuesday it struck a deal to acquire the remaining stake of its joint venture with Samsung called Samsung Corning Precision Materials Co. Samsung Display Co. will make an investment of convertible preferred shares of Corning with an aggregate face amount of $1.9 billion. Corning also pre-announced Q3 earnings and revenue in line with those expected
from Wall Street.
Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) both reached new 52 week highs but were weaker in the session's half.
In sector news, Encana Corporation (ECA, ECA.TO) was up 4% after it reported Q3 earnings of $0.20 per share, ex one-time items, versus the consensus of $0.17. Encana has revised its guidance for expected 2013 natural gas production to be between 2.7 Bcf/d and 2.8 Bcf/d, an adjustment which reflects asset divestitures and delays associated with ongoing work to ramp up the Deep Panuke offshore project to its full production capacity.
Crude was down 1.57%; United States Oil Fund (USO) was down 1.5%. Natural gas was up 0.79%, and United States Natural Gas Fund (UNG) was up 0.6%.
Gold was down 0.53%, and SPDR Gold Trust (GLD) was down 0.35%. Silver was down 0.64%; iShares Silver Trust (SLV) was down 0.32%.
Consumer Staples Select Sector SPDR (XLP) was up 0.9%. iShares Dow Jones US Consumer Goods (IYK) and Vanguard Consumer Staples ETF (VDC) were also firmer and near their 52-week highs.
In sector news, Federal-Mogul (FDML) jumped about 20% to new 52-week highs after reporting Q3 earnings of $0.26 per share, on revenues of $1.69 billion - topping the Capital IQ consensus of $0.12 on revenues of $1.67 billion. The company swung to profit from the prior year period's loss of $0.11 per share. Revenues grew 9% from $1.55 billion in the same period last year.