ETF Preview: Broad Market ETFs Sliding Lower Following Government Jobs Report


iShares MSCI Emerging Markets Index ( EEM ): -1.2%

iShares S&P 500 (IVV): -0.9%

United States Oil Fund (USO): -1.6%

iShares Russell 2000 (IWM): -0.9%

United States Natural Gas Fund (UNG):+0.2%

Pre-Market ETF Most Actives:

SPY, -0.9%

QQQ, -0.5%

FAS, -3.0%

GLD, +0.7%

SDS, +1.9%

Winners and Losers

Broad-market ETFs are trading lower with QQQ, SPY and IWM all moving to the downside in pre-bell trading. The latest employment data from the government showed that non-farm payrolls rose less than analysts had expected. The US Department of Labor reported that US June nonfarm payrolls were up 18,000 compared to the 125,000 analysts had expected. The Jobless rate in June was 9.2% compared to the 9.1% that had been anticipated. May job gains were adjusted down to 25,000 from the initial estimate of 54,000.

Healthcare -

Leading health care shares turned lower immediately after the government's jobs data hit the wires. Pfizer (PFE) is down 0.7%. Johnson & Johnson (JNJ) is down 0.7%.

This morning, Novartis Pharmaceuticals ( NVS ) announced Phase III trial results showing that more than one-third of patients taking its Afinitor drug experienced a 50% or greater reduction in the size of their non-cancerous brain tumors. Novartis shares are down 0.1% ahead of the open.

SPDR S&P Pharmaceuticals ( XPH ), PowerShares Dynamic Pharmaceuticals (PJP) and Pharmaceutical HOLDRs (PPH) are all seeing a seller-dominated pre-market session.

Technology -

Large-cap technology names pared early extended-session gains to trade lower after employment figures from the Labor Department. Among the big-name negative movers are Apple ( AAPL ), down 0.8%; Intel (INTC), down 0.7%; Microsoft (MSFT), down 0.9% Google (GOOG), down 2.2%.

Technology ETFs are seeing varying degrees of pressure across the board, with the Technology Select Sector SPDR (XLK), moving lower before the open as is Semiconductor HOLDRs ( SMH ). Elsewhere, Software HOLDRS (SWH), iShares S&P GSTI Software Index Fund (IGV), Merrill Lynch Internet Architecture HOLDRs (IAH), and Morgan Stanley Technology (MTK) are flat to lower in the early going.

Financial -

Financial shares, which were seeing some pressure in the early pre-market session accelerated declines following the release of the weak employment data. Among the financial issues seeing pressure are C down 1.1%, GS down 1.1%, WFC down 1.5% and JPM down 1.1%. Likewise, bullish financial ETFs are trading to the upside with the Direxion Daily Financial Bull (FAS) down 2.9% and the Financial Select Sector SPDR (XLF) trading down 1.3%.

Commodities and Mining -

Commodity metal ETFs are seeing support in the early going, with SPDR Gold Shares (GLD) is up 0.6%. Market Vectors Gold Miners (GDX) is up 0.5%. iShares Silver Trust (SLV) is up 0.2%.

Power Play -

Internet-focused ETFs could see increased action today as Google (GOOG) was in the spotlight in yesterday's extended session and today's pre-market session. Yesterday, (LOCM) saw gains - which extended into today's pre-market - after the company said in an SEC filing that it entered into a Google Services Agreement with Google.

So far, Internet HOLDRs (HHH), B2B Internet HOLDRs (BHH) and First Trust DJ Internet Index Fund (FDN) are seeing limited interest in the pre-market session but could add to prior-session gains.

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

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

This article appears in: Investing , Commodities

Referenced Stocks: AAPL , EEM , NVS , SMH , XPH

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