Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 ( SPY ): -1.1%
iPath S&P 500 VIX Short Term Futures ( VXX ): +6.4%
iShares MSCI Emerging Markets Index ( EEM ): -2.4%
PowerShares QQQ Trust, Series 1 ( QQQ ): -1.4%
Financial Select Sector SPDR ( XLF ): -1%
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and others, continue to be sharply lower. Actively traded PowerShares QQQ ( QQQ ) is down 1.4%.
U.S. stocks continue to falter as EU fears resurfaced with a vengeance, driving markets around the globe lower. Downbeat news came out of the beleaguered region: market regulators in both Spain and Italy instituted bans on short selling after seeing steep losses, and the IMF is reportedly ready to cut off additional aid to Greece, which in turn renewed concerns of the country's possible exit from the EU. Back home, the Chicago Fed reported a less negative national activity for June, but was still weak.
Winners and Losers
Most ETFs and stocks continue to see red in this space, hit by Spain's increasing bond yields, and being pummeled by news that U.S. prosecutors and European regulators are close to arresting individual traders and charging them with colluding to manipulate global benchmark interest rates, according to people familiar with a sweeping investigation into the rigging scandal. Reuters previously reported that more than a dozen current and former employees of several large banks are under investigation, including Barclays Plc (BCS), UBS (UBS) and Citigroup (C).
Select Financial Sector SPDRs ( XLF ) is down 1%. Direxion Daily Financial Bull 3X shares (FAS) is down 3%. Its bearish counterpart, FAZ, is up 3%.
Actives in the sector are trading in the negative, although they are showing some signs of recovering some ground: Bank of America (BAC), is fluctuating between gains and losses; Goldman Sachs (GS), down 1.7%; Morgan Stanley (MS), also down 1.7%; Barclays Plc (BCS), down 3.4%; and Citigroup (C), down 2.1%. UBS (UBS), down 2.4% and Deutsche Bank (DB), down 4.3%, both hit new year lows of $9.78 and $28.12, respectively.
S & T Bancorp (STBA) is down 2.6% after it reported Q2 earnings of $8.6 million or $0.30 per share, compared with $13.4 million or $0.48 in the same period last year. Analysts polled by Capital IQ were expecting EPS of $0.37.
Bank of Hawaii (BOH) is down 1.8% after it reported Q2 earnings of $0.90 per share, ex one-time items, versus the Capital IQ consensus of $0.87. In the same period last year, the company reported EPS of $0.95. Results for the second quarter of 2012 included a provision for credit losses of $0.6 mln, or $3.2 mln less than net charge-offs, compared with $3.6 mln, or $2.4 mln less than net charge-offs in the same quarter last year.
Dow Jones U.S. Energy Fund (IYE) is down 1.6%; while Energy Select Sector SPDR (XLE) is down 1.5%.
Talisman Energy (TLM) is up 6.3% after announcing that it reached an agreement in the North Sea with Sinopec International Petroleum Exploration and Production Corporation, whereby Sinopec will acquire a 49% equity interest in Talisman's UK North Sea business, Talisman Energy (UK) Limited (TEUK), for $1.5 billion.
Crude was down around 3% while natural gas was up around 0.5%. United States Oil Fund (USO) is down 2.4% while United States Natural Gas Fund (UNG) is up around 0.1%.
Gold was down around 0.4%; likewise, silver was down near 1%. Among rare metal funds, SPDR Gold Trust (GLD) is down 0.4% while iShares Silver Trust (SLV) is down 0.8% near year lows.
ETFs in the space are weaker: Health Care SPDR (XLV), down 1.4%; iShares NASDAQ Biotechnology Index (IBB), down 1.5%; Vanguard Health Care ETF (VHT), down 1.4%; and iShares Dow Jones US Healthcare (IYH), down 1.4%.
Luminex (LMNX) is higher, up 1% at $17.12 but well off a day high $17.88 after it was upgraded to Outperform from Market Perform at Leerink. Price target range is $26 - $28.
InterMune (ITMN) is down 14.5%, challenging its 52-week low of $9.66, after it reported Q2 earnings of $0.01 per share, versus a year ago loss of $0.68 per share. Revenues were $5.5 mln, which consisted solely of revenue from sales of the company's drug, Esbriet in Europe, primarily in Germany. Year ago revenue was $1.3 mln.
Consumer Staples Select Sector SPDR (XLP) is down 1% while iShares Dow Jones US Consumer Goods (IYK) and Vanguard Consumer Staples ETF (VDC) are down 0.8% and 1%, respectively.
SPDR S&P Retail (XRT) is also down 1.4%; PowerShares Dynamic Retail (PMR), down 1.44% and Market Vectors Retail ETF (RTH), now down having earlier hit new year highs.
McDonald's Corp. (MCD) is down 2.6% after reporting Q2 results, with EPS of $1.32 per share whereas analysts were estimating its earnings at $1.38 per share. MCD also came in just shy on revenues, bringing in $6.92 billion versus expectations of $6.94 billion.
The Wet Seal's (WTSLA) board has terminated the employment of the company's Chief Executive Officer, Susan McGalla, effective immediately. Also, the company has lowered its Q2 guidance, seeing a loss per share of $0.06 - $0.07, down from the previous guidance of $ 0.03 - $0.06 loss per share. Analysts polled by Capital IQ are expecting a loss of $0.05 per share. The company sees a comparable sales decline of 10% - 11%. Shares have slumped, now down 10.5% after sinking to a new 52-week low of $2.42.
Hasbro (HAS) is up 3.5% after it today reported Q2 earnings of $0.33 per share, versus the Capital IQ consensus of $0.24. Revenues were $811.5 mln, versus the analyst estimate of $826.64 mln. Earnings were essentially flat with the prior year period's $0.33 per share, which excludes one-time items. Revenues in the comparable period last year were also higher, at $908.5 mln.
Power Play -
Tech actives are mostly in the red: Apple (AAPL), down 0.2%; Microsoft (MSFT), down 2.9%; Intel (INTC), down 1.5%; Google (GOOG), down 0.4%; Cisco (CSCO), down 1.5%; Yahoo (YHOO), down 1.2%.
DigitalGlobe (DGI) and GeoEye (GEOY) have inked a definitive merger agreement under which the companies will combine in a stock and cash transaction valued at approximately $900 million. DGI is now up 6.5% while GEOY is up 34%.
Digitimes reports that manufacturer Pegatron has begun production of Apple's (AAPL) new mobile device. The new iPhone is expected to be thinner with new "in cell" panel technology and also run on a 4G LTE network. In addition, Pegatron is also said to be the second OEM makers of the next iPad, expecting shipments of "a few million units" in the third quarter.
ETFs are weaker: iShares Dow Jones US Technology ETF (IYW), down 1.74%; iShares S&P North American Technology ETF (IGM), down 1.86; iShares S&P North American Technology-Software Index (IGV), down 2.76%; and Technology Select Sector SPDR ETF (XLK) down 1.63%.
SPDR S&P Semiconductor (XSD) is off 2.12%; Semiconductor Sector Index Fund (SOXX) is down 1.73%.
SPDR S&P International Technology Sector ETF (IPK) is down 3.07%.
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