ETF Preview: Broad Market ETFs Slip as Investors Weigh Tapering Likelihood


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

SPDR S&P 500 ETF Trust ( SPY ): -0.33%, earlier hit 52-week high

iShares MSCI Emerging Markets Index ( EEM ): -0.8%

iShares Russell 2000 Index ( IWM ): -0.5%, earlier hit 52-week highs

Market Vectors Gold Miners ( GDX ): -1.7%

iPath S&P 500 VIX Short Term Futures ( VXX ): +0.02% having hit 52 week lows

Pre-market Movers

DUST -2.5%

FXI -1.9%

NUGT +2%

TZA +1.8%

TNA -1.8%

Broad Market Indicators

Many broad-market exchange-traded funds, including SPY, IWM, IVV are all showing modest losses in pre-market trading. Actively traded PowerShares QQQ (QQQ) is down 0.46%.

U.S. stock futures are heading lower this morning as investors weigh the likelihood the Federal Reserve will soon begin tapering its stimulus policy. The focus this week is likely to be on speeches from key Fed figures, including Vice Chairman Janet Yellen who is scheduled to testify before the Senate Banking Committee tomorrow for her confirmation hearing to succeed Ben Bernanke as chairman. Fed Bank of Philadelphia President Charles Plosser will also speak on monetary policy tomorrow.

Power Play: Healthcare

Health Care SPDR (XLV) is flat pre-market after tipping slightly lower after-hours. Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) flat, but both set fresh 52-week highs on Tuesday. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was unchanged after a firmer session Tuesday,

Among stocks, Mast Therapeutics (MSTX) said the U.S. Food and Drug Administration (FDA) has designated MST-188 for the treatment of acute limb ischemia as an orphan drug. The shares are up 9.3% pre-market.

Winners and Losers

Financial -

Select Financial Sector SPDRs (XLF) was down 0.53%. Direxion Daily Financial Bull 3X shares (FAS) was down 1.2%. Its bearish counterpart, FAZ, gained 1.54%, but remains near 52-week lows.

Among financial stocks, In stocks news, ADRs of E-House (China) Holdings Limited (EJ) are up about 16%, off an earlier 24% rise in pre-market trade and touching a new 52-week high after the Chinese real estate services company reported stronger-than-expected Q3 2013 financial results. It also revised upward its fiscal 2013 revenue guidance.


Technology Select Sector SPDR ETF (XLK) dipped after hours, but is unchanged so far this morning; 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 flat after modest gains Tuesday.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) , SPDR S&P International Technology Sector ETF (IPK) are flat after gaining Tuesday.

Among stocks, Photronics (PLAB) is halted after it released preliminary Q4 results this morning. The company says it expects Q4 EPS of $0.06-0.07 on revenue of $105 million to 106 million. This is down from prior guidance of $0.10 to $0.13 on revenue of $110 million to $114 million. The Street is at $0.12 EPS of $112.63 million in revenue.

Energy -

Dow Jones U.S. Energy Fund (IYE) is flat and Energy Select Sector SPDR (XLE) is down 0.5%.

In sector news, Natural gas supplier Clean Energy Fuels Corp. (CLNE) is up more than 3% at $12 in the pre-market session after signing a multi-year bulk fueling agreement to supply liquefied natural gas (LNG) to 2 private United Parcel Service, Inc. (UPS) stations located in Mesquite and Houston, Texas.

Commodities -

Crude is up 0.5%; United States Oil Fund (USO) is also inching higher up 0.4%. Meanwhile, natural gas was up 0.9%, and United States Natural Gas Fund (UNG) has risen 0.3%.

Gold has gained 0.45%, and SPDR Gold Trust (GLD) is up 0.6%. Silver is tipping into the green, gaining 0.06%; iShares Silver Trust (SLV) has gained 0.3%.

Consumer -

Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) are flat, but trading near 52-week highs.

Among stocks, Pinnacle Foods (PF) said it now expects fiscal 2013 earnings to come in at the high end of its previous range between $1.53 and $1.57, in line with the average $1.56 Capital IQ analyst estimate. In Q3, diluted earnings increased 38% to $0.36 per share from $0.26 a year ago, also in line with expectations.

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

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

This article appears in: Investing , Commodities

Referenced Stocks: EEM , GDX , IWM , SPY , VXX

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