ETF Preview: Broad Market ETFs Leaning Higher, Commodities Funds Drop, With Eyes on Debt Talks

By Staff,

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

SPDR S&P 500 ETF Trust ( SPY ): +0.1%

iPath S&P 500 VIX Short Term Futures TM ( VXX ): +0.1%

Select Financial Sector SPDRs ( XLF ): +0.1%

iShares MSCI Emerging Markets Index ( EEM ): +0.3%

PowerShares QQQ Trust, Series 1 ( QQQ ): +0.35%, near 52 week highs

Pre-Market Movers

ZSL +4%

DUST +2.2%

GLL 2.5%

AGQ -4.8%

SLV -2.5%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others are all slightly higher. Actively traded PowerShares QQQ ( QQQ ) is edging up 0.04%.

U.S. stock futures have turned mixed, with the S&P 500 slipping and the DJIA and Nasdaq pointing to a higher open. Investors are still focused on talks to raise the government's debt ceiling as an Oct. 17th deadline looms. Earnings from major corporates, such as Citigroup and Coca-Cola, are also in the news. Coca-Cola is up 1.2% despite reporting results that came in just shy of estimates.

Winners and Losers

Commodities -

Commodities funds are among the most active pre-market amid expectations lawmakers are nearing a breakthrough in talks to raise the government's borrowing limit.

Crude was down 0.58%; United States Oil Fund (USO) has fallen 0.5%. Natural gas was up 0.5%, and United States Natural Gas Fund (UNG) is flat after a higher close Monday.

Gold is down 1%, and SPDR Gold Trust (GLD) is down 0.8%. Silver has dropped 3%; iShares Silver Trust (SLV) was down 2.5%.

Among stocks, Molycorp (MCP) is down almost 23% after saying it plans to sell up to $200 million worth of common stock, with a further $30 million available in an over-allotment option. The funds will be used to finance capital expenditure.

Power Play - SPDR S&P Metals and Mining has a 3.6% weighting to Molycorp, while Market Vectors Rare Earth Strat Met (REMX) has a 5.6% weighting.

Financial -

Select Financial Sector SPDRs ( XLF ) is unchanged. Direxion Daily Financial Bull 3X shares (FAS) is down 0.5%. Its bearish counterpart, FAZ, is gaining 0.18%.

Among financial stocks, Citigroup (C) reports Q3 net income of $1.00 per share on revenue of $17.9 billion, up from $0.15 per share on revenue of $13.7 billion in the year ago quarter. Excluding CVA/DVA in both periods and the MSSB loss in the third quarter 2012, Q3 revenues were $18.2 billion, down 5% from the prior year period. Excluding CVA/DVA and the tax benefit in both periods, as well as the MSSB loss in Q3 2012, earnings were $1.02 per diluted share, down 4% from the prior year period. The analyst consensus on Capital IQ called for non-GAAP earnings of $1.09 per share, GAAP earnings of $1.03 per share, and revenue of $18.8 billion. C is down 1.3% pre-bell.

Technology -

Technology Select Sector SPDR ETF (XLK) is unchanged but remains near 52-week highs; among 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 quiet so far after modest gains on Monday.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) is flat after hitting a 52-week high of $58.83 Monday; Semiconductor Sector Index Fund (SOXX), was up 1.7% setting a 52 week highs of $69.17. SPDR S&P International Technology Sector ETF (IPK) is unchanged.

In sector news, Consulting, technology, and outsourcing services provider Accenture Plc (ACN) formed a joint venture with technology company Siemens (SI) in the smart grid field. The new company, named Omnetric Group, will provide the energy industry with solutions and services focused on data management and systems integration. These solutions will integrate operational technologies such as distribution management and real-time grid operations. SI is down 2% to $121.68 in pre-market trade.

Energy -

Dow Jones U.S. Energy Fund (IYE) is flat after modest gains Monday. Energy Select Sector SPDR (XLE) edged up 0.08% after-hours, though is quiet so far this morning.

In sector news, Kosmos Energy (KOS) has agreed three farm-out agreements with BP plc (BP), covering three blocks in the Agadir Basin, offshore Morocco. BP will acquire a non-operating interest in each of the Essaouira Offshore, Foum Assaka Offshore and Tarhazoute Offshore blocks and will fund Kosmos' share of the cost of one exploration well in each of the three blocks, subject to a maximum cost per well.

Consumer -

Consumer Staples Select Sector SPDR (XLP) was leaning higher after-hours, though is unchanged pre-bell. iShares Dow Jones US Consumer Goods (IYK) and Vanguard Consumer Staples ETF (VDC) were flat.

In sector news, Domino's Pizza (DPZ) fell more than 1% in pre-market trading to $68.00 after saying its Q3 adjusted, diluted earnings rose 18.6% to $0.51, coming in just below the $0.52 average Capital IQ analyst estimate. The company said domestic same store sales rose 5.4% in Q3 while the international division's same store sales rose 5%. Total revenues rose 6.9% to $404 million, coming in just ahead of the $402 million average estimate.

Healthcare -

Health Care SPDR (XLV) is flat at $51.60. Among other healthcare ETFs, Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were unchanged. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) rose 0.3% after hours and is quiet this morning.

In corporate news, Johnson & Johnson (JNJ) is up 1.3% as it reports Q3 adjusted EPS of $1.36, ahead of the analyst consensus of $1.32 per share on Capital IQ. Sales were $17.6 billion, vs. expectations of $17.4 billion. The company increased its earnings guidance for full-year 2013 to $5.44 - $5.49 per share. The Street is at $5.46 per share.

Industrial -

Select Sector SPDR-Industrial (XLI) and other industrial ETFs iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ) and Vanguard Industrials (VIS) were flat after a firmer close on Monday.

Among stocks, Foster Wheeler (FWLT) said a unit of its Global Power Group has won a contract to design, supply and build a 50 gross megawatt electric circulating fluidized-bed boiler island for the Tychy Heat and Power Station in Poland. The contract was awarded by Elektrobudowa S.A. Foster Wheeler said the contract value will be included in the company's bookings for Q3. It didn't provide the value.

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
Referenced Stocks: EEM , QQQ , SPY , VXX , XLF

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