Active broad market exchange-traded funds at mid-day:
SPDR S&P 500 ( SPY ): -0.06%, has turned negative after nearing year highs.
Financial Select Sector SPDR ( XLF ): +0.39%, near its 52-week high
iShares MSCI Emerging Markets Index ( EEM ): -0.67%
iPath S&P 500 VIX Short Term Futures TM ( VXX ): +0.3% from year lows.
iShares MSCI Japan Index ( EWJ ): +0.81%, with a new 52-week high of $10.64.
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are mixed to weaker. Actively traded PowerShares QQQ (QQQ) is down 0.1%.
U.S. stocks have reversed into negative territory after 10 days of gains, which analysts say is the longest win steak in 16 years. In economic data news, industrial production and capacity utilization for the month of February rose 0.7% and 79.6%, respectively. The preliminary reading for Michigan Sentiment in March was 71.8, missing analysts' estimates. Economic data released this Friday morning also propped up market sentiment: February consumer prices rose 0.7%, above expectations, while core prices rose 0.2%, in-line with estimates; a gauge of manufacturing in the New York region showed a reading of 9.2 for March, down from last month's but still better than forecasts.
Winners and Losers
Technology -
Tech ETFs were lower: Technology Select Sector SPDR ETF (XLK), down 0.22%; iShares Dow Jones US Technology ETF (IYW), down 0.05%; iShares S&P North American Technology ETF (IGM), down 0.34%, but still near its 52-week high; and iShares S&P North American Technology-Software Index (IGV), down 0.54%, but also close to its 52-week high.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) slipped 0.84% and Semiconductor Sector Index Fund (SOXX) was down 1.1%, but near its 52-week high. SPDR S&P International Technology Sector ETF (IPK) inched up 0.03%.
In sector news, VirnetX (VHC) has tumbled nearly 12% and closer to year lows after confirming media reports late Thursday that a jury in the Eastern District of Texas determined that asserted claims of VirnetX's '504, '211, and '135 patents are valid over prior art asserted by Cisco (CSCO). The Court in this case granted a judgment as a matter of law (JMOL) that Cisco failed to prove that VirnetX's '759 patent was invalid. However, the Jury also determined that VirnetX did not prove that accused Cisco products infringed the patents in this case. CSCO shares added 1.3%, to near its 52-week high.
Industrial -
Industrial ETFs are lower, but still near their 52-week highs: Vanguard Industrials (VIS), off 0.11%; iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ), down 0.2%; and Select Sector SPDR-Industrial (XLI), flat.
Among stocks, Great Lakes Dredge & Dock Corp (GLDD) shares weakened 18% and moved towards year lows after it reported Q4 earnings of $0.01 per share, which compares with a $0.12 per share profit during the same quarter last year. Analysts, on average, were looking for $0.19 per share in Q4 earnings, although it's not clear how comparable that number is with the company's GAAP earnings. Revenue rose 30.6% to $207.1 mln, beating the analyst consensus by $13.87 mln. The company also said it identified several instances during Q2 and Q3 of 2012 in its demolition segment that did not conform with GAAP revenue recognition standards. GLDD concluded it overstated Q2 revenue by around $3.9 mln and by $4.3 mln in Q3 revenue. It also believes operating income for Q2 and Q3 will need to be adjusted by a combined $2.2 mln. It identified about $600,000 in revenue during Q4 that also did not initially meet revenue-recognition standards. GLDD also said tonight that the company's president and chief operating officer and former chief financial officer, Bruce Biemeck, left the company, effective yesterday.
Energy -
Dow Jones U.S. Energy Fund (IYE) was up 0.11% having hit a new year high and Energy Select Sector SPDR (XLE) was up 0.1%, nearer 52 week highs.
In sector news, Rosetta Resources Inc. (ROSE) shares climbed 4% after the company entered into a definitive agreement to acquire Permian Basin assets from Comstock Resources (CRK) for $768 million, subject to customary closing adjustments. The acquisition covers 53,306 net acres (87,373 gross) located in Reeves and Gaines counties in West Texas. The Reeves County assets located in the Delaware Basin include 40,182 net acres and 74 producing (52 operated) primarily Wolfbone wells. Total current net production is about 3,300 barrels of oil equivalent per day (Boe/d) of which more than 73% is oil. The Gaines County assets located in the Midland Basin cover 13,124 net acres and are currently un-delineated. Rosetta projects significant growth potential for the Reeves County area based on an estimated 1,300 gross, or nearly 800 net well locations targeting the Wolfbone on 40-acre vertical well spacing. Potential exists for multiple exploratory opportunities in the Gaines County area. CRK surged 14.29% higher.
Commodities -
Crude was up 0.44%; natural gas was up 0.4%. United States Oil Fund (USO) is up 0.54%. United States Natural Gas Fund (UNG) was up 1.1%.
Gold was up 0.25% and silver was up 0.18%. Among rare metal funds, SPDR Gold Trust (GLD) was up 0.36%; iShares Silver Trust (SLV) was up 0.22%.
Healthcare -
Healthcare ETFs edged lower in mid-day action: Health Care SPDR (XLV), down 0.24% but near year highs; Vanguard Health Care ETF (VHT), down 0.2%, but near its 52-week high; and iShares Dow Jones US Healthcare (IYH), down 0.35%, also near its 52-week high. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) slipped 0.38%, but reached a new 52-week high of $157.25.
In corporate news, Progenics Pharmaceuticals (PGNX) surged 30% higher, but trimmed its earlier gains of around 36%. The company narrowed its Q4 loss to $0.01 per share, compared with the prior-year period's loss of $0.32 per share. Results for the quarter include special items and may not be comparable to the Capital IQ consensus of $0.33 loss per share. Revenues were $8.9 mln, up from $2.3 mln in the same period last year, and above the analyst estimate of $1.16 mln.
Consumer -
Consumer ETFs are lower, but most were trading at the higher end of their 52-week ranges: Consumer Staples Select Sector SPDR (XLP), down 0.3%; iShares Dow Jones US Consumer Goods (IYK), down 0.33%, with a new 52-week high of $84; and Vanguard Consumer Staples ETF (VDC), down 0.3%.
Retail ETFs dipped lower, but were near 52-week highs: SPDR S&P Retail (XRT), down 0.18%; PowerShares Dynamic Retail (PMR), down 0.51%; and Market Vectors Retail ETF (RTH), down 0.44%, but with a new 52-week high of $48.16.
In sector news, Destination XL Group (DXLG) has jumped 5% with a new 52-week high of $4.91, after it earlier reported Q4 earnings of $0.08 per share, ex one-time items, versus the Capital IQ consensus of $0.08. Revenues were $114.9 mln, versus the analyst estimate of $115.15 mln. Comparable Q4 sales increased 0.5% year-over-year. The company expects FY13 revenues of $415 mln - $420 mln, with comparable sales increase of 8.5% - 10.0%. The Street view $399.95 mln in revenues.
Power Play -
Financial -
Financial stocks and ETFs continue to see active trade following Federal Reserve's Comprehensive Capital Analysis and Review (CCAR) results.
Select Financial Sector SPDRs ( XLF ) is up 0.4% and near year highs. Direxion Daily Financial Bull 3X shares (FAS) is up 0.55% and has landed a new 52 week high. Its bearish counterpart, FAZ, is down 0.58% with a new year low.
Among financial stocks, Bank of America (BAC) is up 3.8% and touched a new 52-week high of $12.61 after its board yesterday approved the repurchase of up to $5 billion worth of common stock and the redemption of $5.5 billion in preferred stock following the Federal Reserve's approval of its 2013 capital plan.
Other financial actives include: BB&T (BBT), down 2.62%; Goldman Sachs (GS), up 0.80%; Wells Fargo & Co. (WFC) up 2.87% with a 53-week high of $38.04; and Citigroup (C), off 0.11%, but near its 52-week high. JPMorgan Chase & Co. (JPM) edged lower 1.63% as the bank's representatives testify before a Senate subcommittee regarding losses that resulted from the so-called London Whale trades.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
