Active broad-market exchange-traded funds in Monday’s regular session: SPDR S&P 500 (NYSEARCA:SPY): -2% VIX Short-Term Futures ETN Ipath (VXX): +6.4% PowerShares QQQ Trust, Series 1 (QQQ): -2.4% Market Vectors Gold Miners ETF (GDX): 4.5% SPDR Select Sector Fund – Financial (XLF): -2.9% Broad Market Indicators Broad-market exchange-traded funds, including SPY, IWM and IVV were sharply lower. Actively-traded PowerShares QQQ (QQQ) was down 2.4%. U.S. stocks were in the negative territory, as the energy, financial and technology sectors weighed on the broader market and drove the Dow Jones Industrial Average more than 300 points lower, Equities tumbled as fresh concerns over a slowdown in global growth were spurred by a report from China that unveiled near $100 billion drawdown in Chinese forex reserves. Lackluster corporate earnings also drove investors to safe-haven assets like precious metals and government securities. Investors will be looking ahead to Federal Reserve Chair Janet Yellen’s testimony to Congress on Wednesday and Thursday when she will speak on the economy and monetary policy. Power Play: Energy Energy funds were in the red, leading losers in performing below the broader market. Dow Jones U.S. Energy Fund (IYE) was down 2.1% and Energy Select Sector SPDR (XLE) was down 2%. Chesapeake Energy (CHK) fell 33.2% to their lowest level since 1999 on Monday even after the company said it has no plans to pursue bankruptcy and is “aggressively seeking to maximize value for all shareholders.” “Kirkland & Ellis LLP has served as one of Chesapeake’s counsel since 2010 and continues to advise the company as it seeks to further strengthen its balance sheet following its recent debt exchange,” the company said. The company made its statement after Debtwire reported the oil and gas firm hired restructuring firm Kirkland & Ellis. Winners and Losers Financial Funds in the financial sector were weaker, below the broader market. Select Financial Sector SPDRs (XLF) was down 2.8%. Direxion Daily Financial Bull 3X shares (FAS) was down 9.1%; Direxion Daily Financial Bear 3X Shares (FAZ) was up 9.5%. HSBC North America Holdings (HSBC) American depository shares were down 4.8% after the company said Friday it has reached a national mortgage settlement worth $470 million with the Department of Justice, the Department of Housing and Urban Development, the Consumer Financial Protection Bureau, various other federal agencies, and attorneys general from 49 states and the District of Columbia. The bank said under the terms of the settlement, the various parties have agreed to release HSBC from civil claims related to past residential mortgage loan origination, servicing and foreclosure practices. HSBC will provide $110 million in cash payment to be allocated among participating federal and state parties and $370 million in customer relief under the terms of the agreement.
The company said the settlement does not mean it will have to take additional charges to income beyond those recorded in prior years. Technology Tech funds were in negative territory, slightly underperforming the broader market. Technology Select Sector SPDR ETF (XLK), iShares Dow Jones US Technology ETF (IYW), iShares S&P North American Technology ETF (IGM) and iShares S&P North American Technology-Software Index (IGV) were weaker. SPDR S&P International Technology Sector ETF (IPK) was down 5.1%. Semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 3.1%, while Semiconductor Sector Index Fund (SOXX) was down 3.2%. Cognizant Technology Solutions (CTSH) was down 6.9% after it reported Q4 adjusted net income of $0.80 per share, up from $0.67 per share in the same period a year ago and exceeding analyst estimates of $0.78. Total revenues of $3.23 billion were up from $2.74 billion in Q4 2014 but just shy of analyst projections of $3.24 billion. The company guided Q1 revenue in the range of $3.18 billion to $3.24 billion, missing analyst projections of $3.32 billion. Q1 adjusted EPS is expected in the range of $0.78 to $0.80, short of the Street estimate of $0.81. Full year 2016 revenue expected to be in the range of $13.65 billion to $14.20 billion, straddling Street projections of $14.12 billion. Full year 2016 adjusted EPS is expected in the range of $3.32 to $3.44, missing analyst estimates of $3.46. Commodities Crude was down 2.8%. United States Oil Fund (USO) was down 2.5%. Natural gas was down 3.3%. United States Natural Gas Fund (UNG) was up 3.1%. Gold was up 3.3% and SPDR Gold Trust (GLD) was up 3.3%.
Silver was up 4% and iShares Silver Trust (SLV) was up 1.8%. Health Care Health care funds were lower, but better than the broader market. Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were weaker. Meanwhile, Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was down 3%. Cell Therapeutics (CTIC) was down 58% after saying the U.S. Food and Drug Administration has placed a partial clinical hold on its pacritinib study for the treatment of patients with intermediate and high-risk myelofibrosis with low platelet counts of less than 50,000 per microliter. The company said the hold impacts part of the clinical work currently being conducted under the investigational new drug application and will also affect planned clinical trials. The company cited the FDA as saying that there was “excess mortality and other adverse events in pacritinib-treated patients compared to the control arm in the PERSIST-1 trial.” Consumer Consumer staples funds were in negative territory, underperforming the broader market. Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were in the red. Consumer discretionary and retail funds were also weaker, below the broader market. Consumer Discretionary Select Sector SPDR (XLY), SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were lower. Apollo Education Group (APOL) was up 23% after saying it has agreed to be taken private for $9.50 per share or a total $1 billion. The private education provider will be acquired by a consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management (APO) and Najafi Companies. The purchase price represents a 30% premium over the 30-day volume weighted average stock price for the period ended Feb. 5, and a 44% premium over the closing price on Jan. 8, immediately prior to the announcement that the Board of Directors was pursuing strategic alternatives. Vistria Group’s chief operating officer Tony Miller will become chairman of Apollo Education upon the close of the deal. The deal is subject to regulatory conditions and approvals and shareholder approval and Apollo noted that each of the class B shareholders have agreed to vote in favor of it. It is expected to be completed by the end of the fiscal year, in August 2016. The company noted that Apollo Education Group and Apollo Global Management are not affiliated.
The ETF decreased 1.40% or $2.63 during the last trading session, hitting $185.35. SPDR S&P 500 ETF Trust (NYSEARCA:SPY) has declined 9.34% since July 2, 2015 and is downtrending. It has outperformed by 0.13% the S&P500.
SPDR S&P 500 ETF Trust is an exchange traded fund. The ETF has a market cap of $160.87 billion. The Trust corresponds to the price and yield performance of the S&P 500 Index. It currently has negative earnings. The S&P 500 Index is composed of 500 selected stocks and spans over 24 separate industry groups.
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