ETF Preview: Broad-Market, Russian ETFs Recover, Futures Higher as Tensions Between Ukraine, Russia Ease

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Active broad-market exchange-traded funds at the close of Monday's regular session:

SPDR S&P 500 ( SPY ): -0.71%

iShares S&P 500 ( IVV ): -0.67%


PowerShares QQQ ( QQQ ): -0.74%

iShares Russell 2000 ( IWM ): -0.54%

iShares Russell 1000 Growth ( IWF ): -0.67%

iShares MSCI Emerging Markets Index (EEM): -1.77%

United States Oil Fund (USO): +2.12%

SPDR Gold Shares (GLD): +2.09%

Select Financial Sector SPDRS (XLF): -0.78%

Pre-Market Movers

SPY, +0.88%

EEM, +1.73%

VXX, -4.13%

IWM, +1.1%

XLF, +0.79%

Broad Market Indicators

Most broad-market exchange-traded funds, including SPY, IWM, IVV were edging higher. Actively traded PowerShares QQQ ( QQQ ) was up 0.96%.

ETFs that track Russian shares were higher in Tuesday's pre-market session, bouncing back from losses Monday, as worries about tensions between Russia and Ukraine eased: Direxion Daily Russia Bull 3x Shares (RUSL), Market Vectors Russia ETF Trust (RSX) and iShares MSCI Russia Capped Index Fund (ERUS) were all higher. Russian President Vladimir Putin said there is "no need yet" to use military force in Ukraine, while Russia's defense minister ordered some soldiers involved in combat-preparedness drills to return to their bases.

U.S. futures also logged gains following the news, with market sentiment optimistic that tensions in Eastern Europe will continue to ease. Only one Federal Reserve official is set to speak today - Richmond Fed President Jeffrey Lacker will be speaking in a one-on-one interview on the economy in New York at 4:15 pm ET. The economic calendar for Tuesday is otherwise bare.

Power Play: Healthcare

Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were unchanged. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was also flat.

In corporate news, Oxygen Biotherapeutics (OXBT) surged more than 30% in Tuesday's pre-market session, after the biotechnology company said the U.S. Food and Drug Administration lifted its clinical hold on Oxycyte following the agency's completion of a review, clearing the company to proceed with the clinical-development program in the U.S. The lift of the clinical hold follows the company's September 2013 submission to the FDA results from two series of animal studies designed to address FDA concerns regarding the use of Oxycyte in treating traumatic brain injury patients.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) was up 0.79%. Direxion Daily Financial Bull 3X shares (FAS) was up 3.25%. Its bearish counterpart, FAZ, was down 3.35%.

Among financial stocks, Bank of Ireland Plc (IRE) fell more than 5% in premarket trading after billionaire Wilbur Ross and Fairfax Financial, two of the bank's biggest shareholders, began divesting their combined 6.4% stake, according to a Reuters report. They had acquired the shares in 2011, after Ireland received bailout funds from the European Union and International Monetary Fund.

Technology

Technology Select Sector SPDR ETF (XLK), 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) were flat. SPDR S&P International Technology Sector ETF (IPK) was also quiet in pre-market.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were flat as well.

In stocks news, China Mobile Games & Entertainment Group (CMGE) shares were up more than 5% in pre-market trade Tuesday after the smartphone game maker reported Q4 earnings of RMB0.58 (US$0.10), compared with loss per ADS of RMB2.71 in Q4 2012. Total revenues were RMB146.4 million (US$24.2 million), compared with RMB28.9 million in Q4 2012. The Street consensus was not available.

Energy

Dow Jones U.S. Energy Fund (IYE) was unchanged pre-bell while Energy Select Sector SPDR (XLE) was up 1%.

In corporate news, electric utility company AES (AES) said it plans to sell $500 million in senior notes due 2024, subject to market and other conditions. It said the net proceeds will be used to fund tender offers for some of its outstanding notes, to pay debt, and for general corporate purposes.

Commodities

Crude was down 1.17%; United States Oil Fund (USO) was down 0.85%. Natural gas was higher, up 2% and United States Natural Gas Fund (UNG) was up 1.69%.

Gold and silver both fell in pre-market trading, down 1.3% and 1.51% respectively. Among rare metal funds, SPDR Gold Trust (GLD) was down 1.44% and iShares Silver Trust (SLV) was down 1.36%.

Consumer

Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were unchanged pre-market after a weaker session Monday.

Among stocks, J.C. Penney Company, Inc. (JCP) have spiked more than 7% in pre-market trading as Standard & Poor's raises its outlook on the company. The firm issued a CCC+ rating on the stock, saying the "outlook revision reflects our view that performance has begun to stabilize." The S&P also said that it expects liquidity will be "adequate" over the next year.



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 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: SPY , IVV , QQQ , IWM , IWF

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As of 12/22/2014, 04:15 PM


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