ETF Preview: Broad Market ETFs Slip Amid Mixed Earnings Reports


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Active broad-market exchange-traded funds at Tuesday's regular session:

SPDR S&P 500 ( SPY ): -0.16%, but still near its all-time high.

Select Financial Sector SPDRs ( XLF ): -0.30%, near its five-year high

iShares MSCI Emerging Markets Index ( EEM ): -0.49%.

Market Vectors Gold Miners ( GDX ): +1.89%

PowerShares QQQ Trust, Series 1 ( QQQ ): +0.24%, reaching a 13-year high.

Pre-Market Movers

YINN +3%

UNG +1.6%

TVIX +1.3%

FXI +1.3%

FXP -2.7%

Broad Market Indicators

Broad market exchange-traded funds are slightly lower in pre-market trading, but most were still near their record or multi-year highs. Actively traded PowerShares QQQ ( QQQ ) is pushing into the green.

U.S. stock futures are pointing to a lower open after a mixed bag of earnings reports, in particular from the tech sector. IBM (IBM) is down 3.3% after the company missed revenue expectations amid weakening demand, while Advanced Micro Devices (AMD) is down 8% after the chipmaker forecast a steeper-than-expected fall in current quarter revenue.

Power Play: Technology

Technology shares may be in focus today after disappointing earnings from tech heavyweights. Technology Select Sector SPDR ETF (XLK) is flat, but slipped 0.28% after hours. It is trading just below its 12-year high. 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) closed firmer after setting record, or multi-year highs on Tuesday. SPDR S&P International Technology Sector ETF (IPK) is flat.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) is flat after setting a three-year high on Tuesday, while Semiconductor Sector Index Fund (SOXX) is also unchanged this morning after a higher close.

In stocks news, ADRs of Zurich-based ACC (ABB) are down 4.6% at $25.45 in pre-bell trading after the company warned its fourth-quarter 2013 results had been adversely impacted mainly by charges for storm-related project delays and some operational issues in the Power Systems (PS) division. Additional restructuring-related charges were taken in response to the division's soft order intake in 2013. The company also booked non-operational charges related to certain Group legacy issues.

Winners and Losers


Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) are flat, but all closed higher on Tuesday after having hit record highs during the session. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) also closed higher, and continued to gain after hours. There has been no movement yet pre-market.

In corporate news, St. Jude Medical (STJ) rose nearly 1% in pre-market trade after saying Q4 earnings rose 8% to $0.99 per share, exceeding the $0.96 average Capital IQ analyst estimate. Net sales rose 4% to $1.42 billion, in line with the consensus.


Select Financial Sector SPDRs ( XLF ) slipped after hours, but is trading near its highest level since May 2008. Direxion Daily Financial Bull 3X shares (FAS) was down 0.25%. Its bearish counterpart, FAZ, was up 0.33%.

Among financial stocks, U.S. Bancorp (USB) shares are up 1% today after it reported Q4 net income of $0.76 per diluted common share, compared with $0.72 per diluted common share a year prior. It reports $4.889 billion in revenue, down from $5.112 billion a year prior. The Street expected $0.75 per share in earnings on $4.88 billion in revenue, according to Capital IQ estimates.


Dow Jones U.S. Energy Fund (IYE) was flat after a higher close Tuesday, while Energy Select Sector SPDR (XLE) is also unchanged pre-bell.

In corporate news, Entergy Corporation (ETR) today indicated that it expects Q4 2013 as-reported earnings of approximately $0.81 per share and operational earnings of approximately $0.99 per share.

That's down from Q4 2012 of $1.66 per share but ahead of the Street consensus of $0.71 per share.


Crude was up 0.55%; United States Oil Fund (USO) was up 0.98%. Natural gas was up 2%, near its 52-week high and United States Natural Gas Fund (UNG) was up 1.9%.

Gold was down 0.08% and silver was down 0.1%. Among rare metal funds, SPDR Gold Trust (GLD) is leaning into the red; iShares Silver Trust (SLV) was down 0.26%.


Consumer Staples Select Sector SPDR (XLP) closed higher on Tuesday, but is unchanged so far this morning; other consumer ETFs Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) are also flat.

In stocks news, Coach (COH) reports Q2 earnings of $1.06 per share, below the analyst consensus of $1.11 per share on Capital IQ. Sales were $1.42 billion, vs. expectations of $1.48 billion. Victor Luis, Chief Executive Officer of Coach, Inc., said, "During the holiday quarter, total sales fell slightly in constant currency as weakness in our North American women's bag and accessories business offset strong growth in Men's, footwear, and robust results in emerging Asian markets and Europe.

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 , GDX , QQQ , SPY , XLF

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