Retail exchange traded funds were mixed after quarterly earnings from Walgreens (NYSE: WAG) while Best Buy (NYSE: BBY) on Tuesday raised its dividend and announced a $5 billion share buyback.
Walgreens shares slipped 5% in early trading Tuesday. The drugstore chain reported higher quarterly profit but said it is ending its relationship with pharmacy benefit manager Express Scripts (NasdaqGS: ESRX). Walgreens said it will not be part of the Express Scripts’ pharmacy provider network in 2012.
Conversely, Best Buy shares rose Tuesday morning after the electronics retailer said its board has authorized a new $5 billion share buyback plan. The company also boosted its quarterly dividend by 7%.
“Best Buy’s business generates significant cash flow and we are committed to using that cash in a disciplined manner,” said Brian Dunn, chief executive.
The two stocks are components in sector ETFs such as Retail HOLDRS (AMEX: RTH) and SPDR S&P Retail ETF (NYSEArca: XRT). They were mixed in early dealings Tuesday. [ETF Spotlight on Retail]
SPDR S&P Retail ETF
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