ETF Preview: Broad Market ETFs Heading Lower Ahead Of Economic Data Releases


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Active broad-market exchange-traded funds in Monday's regular session:

SPDR S&P 500 ETF Trust ( SPY ): +0.14%, but with new 52-week highs

iShares MSCI Emerging Markets Index ( EEM ): +0.26%

iPath S&P 500 VIX Short Term Futures TM ( VXX ): -1.17%, earlier hit 52-week low

iShares Russell 2000 Index ( IWM ): +0.95%, with new 52-week highs

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.12%, near 52-week highs

Pre-market movers

UUPT +2.6%

DUST +1.3%

NUGT -1.3%

TQQQ -1%

TZA +0.7%

Broad Market Indicators

Many broad-market exchange-traded funds, including SPY, IWM, IVV and others are modestly weaker this morning. Actively traded PowerShares QQQ ( QQQ ) is off 0.3%.

U.S. stocks futures are pointing to a weaker open as investors take a breather ahead of key data due out this week. At 10 a.m. New York time the Institute for Supply Management's non-manufacturing index will be released. Analysts expect it to fall to 54 from 54.4 in September.

U.S. economy GDP figures are also due out later this week.

Power Play: Financial

Financial stocks may be active today, with many showing pre-market losses, especially European lenders, amid expectations the European Central Bank may cut rates later this week. Deutsche Bank (DB) is down 2.9% pre-market, while Royal Bank of Scotland (RBS) is down 3%. Select Financial Sector SPDRs (XLF) slipped 0.1%, near its 52-week high. Direxion Daily Financial Bull 3X shares (FAS) was down 0.2%. Its bearish counterpart, FAZ, was up 0.12%.

Among financial stocks, Ritchie Bros. Auctioneers Incorporated (RBA, RBA.TO) generated adjusted net earnings of $16.0 million, or $0.15 per diluted share in the third quarter of 2013. This compares to adjusted net earnings of $9.7 million, or $0.09 per diluted share in the same quarter last year, representing a 65% increase. It also easily beat forecasts for EPS of $0.09.

Winners and Losers

Technology -

Technology Select Sector SPDR ETF (XLK), is quiet after a 0.3% gain after hours. Other tech ETFs 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) are all flat after strong gains Monday.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD), Semiconductor Sector Index Fund (SOXX) and SPDR S&P International Technology Sector ETF (IPK) are also flat, but were mostly weaker Monday.

Among stocks, Software company Open Text Corporation (OTEX, OTC.TO) has entered into an agreement and plan of merger to acquire GXS Group, Inc., a company engaged in business-to-business (B2B) cloud integration, for $1.165 billion. Following the completion of the transaction, GXS will become a wholly-owned subsidiary of OpenText.

Energy -

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) both set new 52-week highs Monday and are quiet so far.

In sector news, Natural gas producer Encana Corp. (ECA, ECA.TO) will cut its workforce by 20%, slash its dividend and sell shares in a new royalty company in a bid to lift cash flow for the coming years. Encana has maintained a $0.20 quarterly payout since 2009, but today declared a $0.07 dividend. Encana will place 5 million acres of land with gas and oil royalty production into a separate company and plans an initial public offering in mid-2014. Encana's stock is currently up more than 1% in U.S. pre-market trade, but was down around 2% recently.

Commodities -

Crude was is down 0.22%; United States Oil Fund (USO) is edging higher. Natural gas was down 1.4%, and United States Natural Gas Fund (UNG) was down 1.6%.

Gold is leaning slightly lower, and SPDR Gold Trust (GLD) was up 0.3%. Silver was down 0.18%; iShares Silver Trust (SLV) is up 0.58%.

Healthcare -

Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) all set fresh new 52-week highs Monday, but are quiet so far this morning. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was weaker yesterday and unchanged so far this morning.

Among stocks, Drug development company AEterna Zentaris Inc. (AEZS, AEZS.TO) - which is slated to announce its third quarter 2013 financial and operating results after market close today - has submitted a New Drug Application to the U.S. Food and Drug Administration for its ghrelin agonist, macimorelin acetate. Macimorelin acetate, a ghrelin agonist, is a novel orally-active small molecule that stimulates the secretion of growth hormone.

Industrial -

Select Sector SPDR-Industrial (XLI) was up 0.14%, and posted a new 52 week high. iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ) and Vanguard Industrials (VIS) are unchanged, but both hit new highs Monday.

Among stocks, Monsanto Company (MON) said it plans a $1 billion public debt offering, with $400 million in bonds, $300 million in 5-year bonds and $300 million in 30-year bonds. Monsanto is a provider of technology-based solutions and agricultural products that help farm productivity and food quality.


Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) all set fresh highs Monday, but are unchanged pre-bell.

Among stocks, Cereal maker Kellogg Company has been downgraded by analysts at Deutsche Bank to a Hold rating from a Buy. The price target was also reduced to $65 from $68 a share.

"While we believe Kellogg's four-year restructuring is logical and necessary, limited 2014 visibility into sales/EBIT recovery and heavy cash cost push us to a Hold opinion," said Deutsche Bank. "Long term growth in global cereal and snacks are compelling but it's clear greater investment is required." Shares of K are down 0.43% to $62.45 pre-bell.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities
More Headlines for: EEM , IWM , QQQ , SPY , VXX

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