Mid-Day ETF Update: ETFs Track Stocks Lower On Disappointment over Draghi Remarks, ECB Inaction
Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 ( SPY ): -1.1%
Financial Select Sector SPDR ( XLF ): -1.5%
iPath S&P 500 VIX ST Futures ETN ( VXX ): +1.5%
PowerShares QQQ Trust, Series 1 ( QQQ ): -0.7%
iShares Russell 2000 Index ( IWM ): -0.7%
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and many others, continue to be in the negative territory. Actively traded PowerShares QQQ ( QQQ ) is down 0.7%.
U.S. stocks are broadly lower on investor disappointment following ECB President Mario Draghi remarks that the Governing Council of the ECB unanimously agreed not to cut key rates. Draghi repeated earlier pledges to preserve the euro, saying the ECB may act. But again, he did not provide concrete details as to how, and when it will take action.
Winners and Losers
Select Financial Sector SPDRs ( XLF ) is down 1.4%. Direxion Daily Financial Bull 3X shares (FAS) is down 3.8%. Its bearish counterpart, FAZ, is up 3.5%.
Actives in the sector are weaker: Bank of America (BAC), down 1%; Morgan Stanley (MS), down 3.2%; Citigroup (C), down 2.4%; and Goldman Sachs (GS), down 2.9%.
Knight Capital Group (KCG) is now down 56% and has hit new year lows. The broker and trading platform company yesterday reported a software glitch, which affected almost 150 stocks. Now the company has disclosed that it was hit by a $440 mln pretax loss as a result of exiting the erroneous trading position caused by its software glitch. The glitch, the company notes, was caused by the installation of trading software.
Tech actives are continue to be in the red: Apple (AAPL), down 0.2%; Microsoft (MSFT), down 1%; Intel (INTC), down 0.5%; Google (GOOG), down 1%; Cisco (CSCO), down 1.8%; and Yahoo (YHOO), down 1.9%.
First Solar (FSLR) is up 25% after the company reported in yesterday's after hours session that Q2 EPS was $1.27, above estimates of $0.90. Revs for the quarter came in at $957 mln, widely topping estimates of $819 mln. Based on cost structure reductions, FSLR revised 2012 guidance as follows: net sales of $3.6 billion - $3.9 billion, compared to prior guidance of $3.5 billion - $3.8 billion. EPS to $4.20-$4.70, compared to prior guidance of $4.00-$4.50.
Cavium (CAVM) is up 9% after it reported Q2 EPS of $0.07, beating the Capital IQ consensus estimate of $0.02. Revenues came in at $55.3 mln, also topping estimates of $55.11 mln.
Yelp (YELP) continues to gap higher, now up 18%. The company posted a Q2 loss of $0.03 per share, compared with the prior year period's $0.08 loss per share and narrower than the Capital IQ consensus of $0.06 loss per share. Revenues were $32.7 mln, up 66.8% from last year's $19.6 mln, and above the analyst estimate of $30.69 mln. For Q3, the company sees revenues of $34.5 mln - $35.5 mln, just above the consensus of $34.40 mln. The company expects FY12 revenue guidance range to be $135 mln - $136 mln. Analysts are looking for $130.99 mln in revenues.
ETFs join the broader market lower: Technology Select Sector SPDR ETF (XLK), down 0.8%; iShares Dow Jones US Technology ETF (IYW), off 0.8%; iShares S&P North American Technology ETF (IGM), down 1%; and iShares S&P North American Technology-Software Index (IGV), down 0.9%.
SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) are lower, down 0.2% and 1%, respectively.
SPDR S&P International Technology Sector ETF (IPK) is down 1.9%.
Dow Jones U.S. Energy Fund (IYE) is down more than 2% while Energy Select Sector SPDR (XLE) is also down more than 2%.
Tesoro (TSO) is up 11% and hit new year highs. It reported Q2 2012 net income of $387 million, or $2.75 per diluted share compared to net income of $218 million, or $1.52 per diluted share for the second quarter of 2011. Ex-items, EPS for the period was $2.87, in-line with the Capital IQ analyst consensus. Revenues for the period were $8.105 billion, also in-line with the Street view, compared to $7.96 billion for the corresponding 2011 period.
Energizer Holdings (ENR) is down 2% after it reported Q3 adjusted earnings of $1.18 per share, ex one-time items, versus the Capital IQ consensus of $1.31. Revenues were $1.12 bln, versus the analyst estimate of $1.23 bln. The company reaffirms its guidance for FY12, still expecting EPS of $6.00 - $6.20, in line with $6.07.
Boardwalk Pipeline Partners (BWP) is 5.5% lower after announcing that it will sell 10.5 million common units in a public offering.
Crude was down around 1.3%; natural gas was down 6.34% and was near the 52-week low of $2.22; United States Oil Fund (USO) is down 1%. United States Natural Gas Fund (UNG) was down 5.5%.
Gold was down 0.84% while silver was down 1.63% . Among rare metal funds, SPDR Gold Trust (GLD) is down 0.7% and iShares Silver Trust (SLV) is down 1.4%.
ETFs continue to gap lower: Health Care SPDR (XLV), down 1.3%; iShares NASDAQ Biotechnology Index (IBB), down 0.2%; Vanguard Health Care ETF (VHT), down 1.1%; and iShares Dow Jones US Healthcare (IYH), down 1.3%.
Gilead Sciences (GILD) is up 9.5% and hit new year highs. The company signed an agreement with Mylan Inc. (MYL) subsidiary Mylan Laboratories Limited, Ranbaxy Laboratories Limited and Strides Arcolab, under which MYL has licensed the rights to produce and market generic versions of GILD's HIV/AIDS therapies containing Emtricitabine, including single and fixed-dose combinations. Emtricitabine is marketed by GILD under the brand name Emtriva. MYL shares are down 1.5%.
Idenix Pharmaceuticals (IDIX) is down 1%, having lost itts earlier gains, after announcing late yesterday that it has commenced an underwritten registered public offering of $150 million of its common stock.
Bristol Myers Squibb (BMY) is down 8% following the company's announcement late yesterday that it has voluntarily suspended its clinical trial of a hepatitis C drug after a serious safety issue emerged. The Phase two study was of BMS-986094, formerly known as INX-189, a nucleotide polymerase inhibitor. The company has yet to determine the potential relationship between the drug and the safety issue. Additionally, BMY has undertaken an immediate assessment of all patients in the study and will evaluate the patients' data.
Power Play -
ETFs are lower despite gainers among stocks: Consumer Staples Select Sector SPDR (XLP), down near 1%; iShares Dow Jones US Consumer Goods (IYK), down %; and Vanguard Consumer Staples ETF (VDC), down 0.8%.
SPDR S&P Retail (XRT) is off 1%; PowerShares Dynamic Retail (PMR), down 0.2%; and Market Vectors Retail ETF (RTH), down 0.2%, having earlier hit new year highs.
Abercrombie & Fitch (ANF) is down 15%, and earlier sank to new 52-week lows after it reported late Wednesday that Q2 sales were $951.4 mln, below the analyst consensus of $1.00 bln, according to Capital IQ. The company expects to report EPS of about $0.15 to $0.18, vs. Street estimates of $0.33 per share. For the full year, the company now expects EPS of about $2.50 to $2.75, vs. estimates of $3.37 per share.
Gap Inc. (GPS) is up near 10% and hit new year highs after it reported net sales for Q2 increased 6% yoy to $3.58 billion versus the Thomson Reuters mean for $3.50843 billion. It says July net sales increased 12% yoy. The company expects diluted earnings per share for Q2 to be in the range of $0.47 to $0.48, compared with $0.35 a year ago. The Thomson Reuters mean is for $0.38.
United Online (UNTD) is up 22% but off day highs after reporting late Wednesday EPS of $0.18, beating estimates of $0.13. Q2 revs of $231.9 mln were in-line with estimates. UNTD provided guidance for Q3 revenues between $172.0 - $178.0 mln; adjusted OIBDA of $23.0 - $27.0.
Green Mountain Coffee Roasters (GMCR) is up 30% after it reported Q3 EPS of $0.52, beating estimates of $0.50. GMCR reported earnings of $869.2 mln, shy of estimates of $873.2 mln. GMCR provided Q4 guidance for net sales in the range of $889.9 million to $925.5 million; and EPS in a range of $0.45 to $0.50. The Street view is $952 mln in revenue and EPS of $0.61 per share.