Intraday Update

Market Wrap for Wednesday, May 22: Stocks Pullback As Bernanke Says Bond Buying Could Slow

Scott Rubin — Wed, 22 May 2013 20:19:04 +0000

In Congressional testimony on Wednesday, Federal Reserve Chairman Ben Bernanke said that the central bank could begin winding down its $85 billion-per-month bond-buying program at one of its "next few meetings."

Minutes from the May FOMC meeting, however, showed that there is no consensus about when to begin pulling back on the stimulus. The decision will likely be significantly influenced by the trajectory of the economy in coming months.

The comments spooked investors who have been enjoying a near continuous rally in in U.S. stocks in 2013. The major averages fell throughout much of the session and closed near their worst levels.

Major Averages

The Dow Jones Industrial Average lost 80 points, or 0.52 percent, to 15,307.

The S&P 500 fell 14 points, or 0.83 percent, to 1,655.

The Nasdaq shed almost 39 points, or 1.11 percent, to 3,463.

Existing Home Sales

Home sales improved slightly in April, rising to 4.97 million from 4.94 million in March. Nevertheless, this came in below consensus expectations calling for an increase to 4.98 million.

Commodities

Crude oil prices fell along with the stock market on Wednesday. Late in the day, NYMEX crude futures were down around 2 percent to $94.20. Brent crude futures had lost 1.35 percent to $102.51. Natural gas was last trading down 0.14 percent to $4.19.

Precious metals also fell along with the market. Heading into the close of equities, COMEX gold futures were down 1.35 percent to $1,359.00. Silver contracts had lost a little less than 1 percent to $22.25. Copper futures were last up 0.51 percent on Wednesday.

The grain complex was higher across the board on the session. At last check, corn ...

Mid-Afternoon Market Update: MannKind Posts Huge Rally as Markets Plummet

Jake L'Ecuyer — Wed, 22 May 2013 20:18:20 +0000

Toward the end of trading Wednesday, the Dow traded down 0.72 percent to 15,276.86, while the NASDAQ fell 1.53 percent to 3,448.99. The S&P was also down, falling 1.14 percent to 1,650.98.

Top Headline
Target (NYSE: TGT) reported a drop in its first-quarter profit.

Target's quarterly profit declined to $498 million, or $0.77 per share, versus $697 million, or $1.04 per share, in the year-ago period. Its adjusted earnings per share came in at $1.05 per share. Its revenue dropped to $16.71 billion from $16.87 billion. However, analysts were projecting earnings of $0.95 per share on revenue of $16.85 billion.

Target cut its full-year adjusted earnings forecast to a range of $4.70 to $4.90 per share, versus a previous range of $4.85 to $5.05 per share.

Equities Trading UP
Saks (NYSE: SKS) shot up, gaining 13.17 percent to $15.47, after the New York Post reported that Saks has hired Goldman Sachs to explore strategic alternatives including a sale.

NPS Pharmaceuticals (NASDAQ: NPSP) traded up ...

Apple Tops New WisdomTree Dividend ETF

ETF Professor — Wed, 22 May 2013 18:08:54 +0000

Apple's (NASDAQ: AAPL) new status as a dividend stock is, no pun intended, bearing fruit. At least at the new ETF level.

The WisdomTree U.S. Dividend Growth Fund (NASDAQ: DGRW), which debuted today, features the iPad maker as its largest holding with a weight of 4.71 percent.

Aside from making for good headlines, such as the one on this article, Apple's ascent to the top of any dividend ETF is a sign of a growing theme in the dividend ETF space. That being the move toward those funds that focus on weighting metrics beyond length of dividend increase streaks.

"Investors are hungry for income in this low interest rate, low yield environment," said WisdomTree Research Director Jeremy Schwartz in a statement. "Rather than relying on historical records of dividend increases, DGRW uses real-time growth and quality metrics focused on companies who are growing their dividends."

Part of the focus on stocks that are showing favorable dividend growth going forward includes the WisdomTree U.S. Dividend Growth Fund allocating over 20 percent of its weight to the technology sector, the sector currently leading the market's dividend growth. ...

These Energy ETFs Are Breaking Out

ETF Professor — Wed, 22 May 2013 17:05:00 +0000

It has been said the S&P 500's ascent to what feels like a string of never ending new highs has been a rally short on risk-taking and long on low beta fare.

At the sector level, and it is sectors that lead equity markets not vice versa, there are signs risk is coming back into style.

Energy is one of the higher beta sectors that has been showing signs of promise. In the past month, the Energy Select Sector SPDR (NYSE: XLE), the largest energy ETF by assets, has surged 10.3 percent and is showing signs of a major technical breakout.

Chris Kimble of Kimble Charting Solutions notes XLE just cleared horizontal resistance and now resides about 10 percent from its 2008 highs. Interestingly, Tuesday's for NYMEX-traded oil was just under $96 per barrel. In other words, oil futures are nowhere close to being just 10 percent below the 2008 highs.

XLE is not the only equity-based energy based that has broken out is or on the cusp of doing so. Here are a few more ETF ideas for an ongoing energy sector rally.

PowerShares Dynamic Energy Exploration & Production Portfolio (NYSE: PXE)
By the standards of many energy ETFs such as XLE, PXE is small ...

Mid-Day Market Update: Dycom Gains On Upbeat Results, CVR Partners Drops

Jake L'Ecuyer — Wed, 22 May 2013 16:56:39 +0000

Midway through trading Wednesday, the Dow traded up 0.70 percent to 15,494.86, while the NASDAQ rose 0.48 percent to 3,518.99. The S&P was also up, gaining 0.65 percent to 1,679.98.

Top Headline
Target (NYSE: TGT) reported a drop in its first-quarter profit.

Target cut its full-year adjusted earnings forecast to a range of $4.70 to $4.90 per share, versus a previous range of $4.85 to $5.05 per share.

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Equities Trading UP
Saks (NYSE: SKS) shot up, gaining 14.05 percent to $15.59, after the New York ...

Stocks Hitting 52-Week Lows

Lisa Levin — Wed, 22 May 2013 14:49:20 +0000

Greenway Medical Technologies (NYSE: GWAY) shares reached a new 52-week low of $11.59. Greenway's PEG ratio is 33.38.

LookSmart (NASDAQ: LOOK) shares fell 3.37% to touch a new 52-week low ...

Stocks Hitting 52-Week Highs

Lisa Levin — Wed, 22 May 2013 14:22:38 +0000

Under Armour (NYSE: UA) shares gained 1.84% to create a new 52-week high of $65.48. Under Armour's trailing-twelve-month ROE is 16.07%.

Toll Brothers (NYSE: TOL) shares touched a new 52-week high of ...

Mid-Morning Market Update: Markets Surge, Target Posts Lower Profit

Jake L'Ecuyer — Wed, 22 May 2013 14:14:18 +0000

Following the market opening Wednesday, the Dow traded up 0.55 percent to 15,472.44, while the NASDAQ rose 0.52 percent to 3,520.40. The S&P was also up, gaining 0.59 percent to 1,678.95.

Top Headline
Target (NYSE: TGT) reported a drop in its first-quarter profit.

Target cut its full-year adjusted earnings forecast to a range of $4.70 to $4.90 per share, versus a previous range of $4.85 to $5.05 per share.

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Equities Trading UP
Saks (NYSE: SKS) shot up, gaining 16.02 percent to $15.86, after the ...

Morning Market Losers

Lisa Levin — Wed, 22 May 2013 14:09:48 +0000

Suntech Power Holdings Co (NYSE: STP) shares dipped 21.87% to $1.00. Suntech Power's trailing-twelve-month ROE is -86.50%.

SolarWinds (NYSE: SWI) shares lost 12.06% to $42.13 after ...

Morning Market Movers

Lisa Levin — Wed, 22 May 2013 13:57:46 +0000

Cleantech Solutions International (NASDAQ: CLNT) shares advanced 77.81% to $6.65. Cleantech Solutions became certified supplier to China's oil and natural gas industry.

Zale (NYSE: ZLC) ...

Long Setup in Herbalife Still Attractive; Stock Breaks Out as New Auditor Hired

Scott Rubin — Tue, 21 May 2013 21:21:27 +0000

Few stocks have attracted more news over the last six months than nutritional supplement maker Herbalife (NYSE: HLF).

Even casual market observers are aware of the circumstances surrounding the the initial bout of extreme volatility in the name back in December 2012. The shares went into free-fall at the end of the year after hedge fund manager Bill Ackman revealed in typical sanctimonious fashion that his firm Pershing Square Capital Management was short around $1 billion worth of the stock.

Amid much pomp and circumstance, Ackman laid out his short thesis at a New York investment conference and immediately made the rounds in the financial media. The noted investor called the multi-level marketing company's business model a "pyramid scheme" and boldly proclaimed that his price target for the stock was "$0."

The way that the Pershing Square founder went about attacking Herbalife sure made it seem like he was trying to inflict maximum damage to the company in a very short period of time.

While Ackman's strategy was initially brutally effective, it quickly backfired on him. Herbalife shares swan-dived from above $42 on December 18, the day before the hedge fund manager's presentation, to a low of roughly $26 by Christmas Eve.

The news caused the heaviest high-volume selling in Herbalife's history as a publicly traded company. The stock bounced back nearly as quickly as it plunged, however, as numerous other investors and market observers came out in support of the company. Herbalife itself also aggressively refuted Ackman's allegations.

When two of the world's top hedge fund managers, Dan Loeb and Carl Icahn, revealed that their firms had bought large stakes in the Cayman Islands-based company ...

Mid-Afternoon Market Update: Markets Look to be Closing Higher For the 19th Strait Tuesday

Jake L'Ecuyer — Tue, 21 May 2013 19:59:37 +0000

Toward the end of trading Tuesday, the Dow traded up 0.47 percent to 15,407.31, while the NASDAQ rose 0.28 percent to 3,506.98. The S&P was also up, gaining 0.30 percent to 1,671.54.

Top Headline
Home Depot (NYSE: HD) reported an 18.5% increase in its Q1 earnings and lifted its 2013 earnings forecast.

Home Depot's quarterly profit surged to $1.2 billion, or $0.83 per share, versus $1 billion, or $0.68 per share, in the year-ago quarter.

Its net sales climbed 7.4% to $19.1 billion from $17.8 billion, while comparable-store sales rose 4.3%. However, analysts were estimating earnings of $0.76 per share on revenue of $18.53 billion. Home Depot now projects 2013 EPS to rise around 17% to $3.52.

Equities Trading UP
Saks (NYSE: SKS) has been on the rise all day, gaining 9.94 percent to $13.50 after the company reported first quarter results in line ...

A Docile ETF For The Nat Gas Surge

ETF Professor — Tue, 21 May 2013 19:54:05 +0000

Natural gas futures are volatile.

That much is widely known and that volatility explains the allure of an ETF such as the U.S. Natural Gas Fund (NYSE: UNG) for active, short-term traders. With natural gas futures soaring recently and getting another lift Tuesday after the U.S. National Weather Service issued a warmer-than-expected six-to-ten-day forecast for the eastern part of the U.S., UNG is again in the spotlight.

And with that comes traders embracing even more volatile fare such as the leveraged ProShares Ultra DJ-UBS Natural Gas (NYSE: BOIL), BOIL's bearish equivalent, the ProShares UltraShort DJ-UBS Natural Gas (NYSE: KOLD), and the VelocityShares 3x Long Natural Gas ETN (NYSE: UGAZ).

Those that want to take a more conservative to profiting from rising natural gas futures have options, too. One of the better choices is the First Trust ISE-Revere Natural Gas Index Fund (NYSE: FCG). As has been previously noted, FCG's name is somewhat deceiving because plenty ...

Mid-Day Market Update: Navios Maritime Jumps On Upbeat Results, iGATE Drops

Jake L'Ecuyer — Tue, 21 May 2013 16:54:52 +0000

Midway through trading Tuesday, the Dow traded up 0.20 percent to 15,365.31, while the NASDAQ rose 0.04 percent to 3,497.98. The S&P was also up, gaining 0.08 percent to 1,667.54.

Top Headline
Home Depot (NYSE: HD) reported an 18.5% increase in its Q1 earnings and lifted its 2013 earnings forecast.

Home Depot's quarterly profit surged to $1.2 billion, or $0.83 per share, versus $1 billion, or $0.68 per share, in the year-ago quarter.

Equities Trading UP
Yingli Green Energy Holding Co (NYSE: YGE) shot up, gaining 24.19 percent to $3.8499, after the company announced preliminary Q1 financial ...

Three Surprising Sources of Global ETF Yield

ETF Professor — Tue, 21 May 2013 16:40:34 +0000

Today's low interest rate environment has sent investors scurrying for yield across myriad asset classes. Whether it is with traditional dividend stocks, multi-asset products or bank loan and junk bond ETFs, investors have an increasing array of choices with which to generate income.

International equities, both developed and emerging markets, also represent an integral part of the dividend equation.

Select developed market companies in sectors such as energy and telecommunications often feature higher dividend yields than their U.S. counterparts while many emerging markets firms have been upping their status as dividend-payers.

With that in mind, here are a few surprising sources of international dividend yield that ETF investors may not currently be considering.

db X-trackers MSCI EAFE Hedged Equity Fund (NYSE: DBEF)
Due in large part to the success of the two hedged yen ETFs, currency hedged ETFs have spent some time in the spotlight this year. The db X-trackers MSCI EAFE Hedged Equity Fund is another name that is worthy of a place in that conversation.

DBEF, which has surged almost 14 percent in the past 90 days, is essentially the hedged currency version of the iShares ...