ETF Preview: ETFs, Futures Dip Lower on Weaker-Than-Expected Consumer Spending in April


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

SPDR S&P 500 ( SPY ): +0.41%

iShares S&P 500 ( IVV ): +0.38%

PowerShares QQQ ( QQQ ): +0.53%

iShares Russell 2000 ( IWM ): +0.69%

iShares Russell 1000 Growth ( IWF ): +0.35%

iShares MSCI Emerging Markets Index (EEM): +0.39%

United States Oil Fund (USO): +0.45%

SPDR Gold Shares (GLD): +1.39%

Select Financial Sector SPDRS (XLF): +1.20%

Pre-Market Most Active:

EWJ, -2.25%

SPY, -0.44%

EEM, -0.62%

XLF, -0.25%

GDX, -0.73%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are weaker. Actively traded PowerShares QQQ ( QQQ ) is down 0.47%.

U.S. stock futures are looking to open in the negative after the Commerce Department reported that April consumer spending in the U.S. slipped 0.2% on a seasonally adjusted basis - the sharpest decline in nearly a year and more than the expected 0.1% decline, according to analysts polled by MarketWatch. Personal income also dipped less than 0.1% in April, missing the forecast of a 0.2% gain.

Winners and Losers

Financial -

Select Financial Sector SPDRs (XLF) is down 0.25%. Direxion Daily Financial Bull 3X shares (FAS) is down 0.91%. Its bearish counterpart, FAZ, is up 1.04%.

Among financial stocks, American Realty Capital Properties Inc. (ARCP) is down 0.19% after it said it entered into an agreement to purchase from GE Capital a $807 million portfolio of 471 net lease properties comprised primarily of nationally recognized restaurants. The 471 property portfolio includes assets net leased to tenants who operate restaurants including: IHOP, Jack in the Box, Golden Corral, Burger King, Arby's, Taco Bell, Applebee's, Wendy's, Logan's Roadhouse, and Denny's. These 10 national brands constitute approximately 64% of the net operating income of the portfolio to be acquired.

Technology -

Tech ETFs 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) are leaning higher.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) look to open in the green.

SPDR S&P International Technology Sector ETF (IPK) is headed for a flat to higher open.

In sector news, OmniVision Technologies (OVTI) is up 20.59% after it reported Q4 EPS of $0.31, ex special items, beating the Capital IQ consensus estimate of $0.21. Revenues of $336.2 million also topped the consensus of $319.02 million. The company projects Q1 EPS of $0.35 - $0.52, ex one-time items, on revenues of $355 million - $390 million, above the Street view of $0.28 EPS on revenues of $342.77 million.

Energy -

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) are heading for a weaker start.

In sector news, WBI Energy of MDU Resources (MDU) says it's proposed a natural gas pipeline stretching from far western North Dakota to western Minnesota where it would connect with Viking Gas Transmission Company's pipeline system. The project investment is estimated to be between $650 million and $700 million. The pipeline has been initially designed to transport approximately 400 million cubic feet per day of natural gas.

Commodities -

July crude is down 0.79%; July natural gas is up 0.50%. United States Oil Fund (USO) is down 0.69%. United States Natural Gas Fund (UNG) is up 0.28%.

August gold is down 0.47% and silver for July delivery is down 2.16%. Among rare metal funds, SPDR Gold Trust (GLD) is down 0.33%; Market Vectors Gold Miners ETF (GDX) is down 0.73%; and iShares Silver Trust (SLV) is down 1.68%.

Healthcare -

Healthcare ETFs Health Care SPDR (XLV), Vanguard Health Care ETF (VHT), and iShares Dow Jones US Healthcare (IYH) are pointing to a positive start. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is also pointing higher.

In corporate news, Vanda Pharmaceuticals (VNDA) is up 6.52% after it submitted New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for tasimelteon, a circadian regulator, for the treatment of Non-24-Hour Disorder (Non-24), a serious and rare, circadian rhythm disorder that affects the majority of totally blind individuals who lack light perception and who therefore cannot synchronize their master body clock to the 24-hour day. VNDA had previously announced that the FDA confirmed, at a recent pre-NDA meeting, that the efficacy, safety and supporting data package proposed to be included in the NDA would be adequate to support filing of the NDA for review. The tasimelteon Non-24 NDA includes data from the largest clinical program conducted to date for any investigational therapy for the treatment of Non-24.

Power Play -

Consumer -

Consumer ETFs Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) are pointing to a weaker start.

In sector news, Krispy Kreme Doughnuts Inc. (KKD) is up 10.59% after the company reported Q1 earnings of $0.20 per share, better than analyst estimates of $0.11 per share, and higher than Q1 2012 earnings of $0.14 per share. Revenues of $120.6 million were better than analyst estimates of $116.4 million and higher than revenues of $108.5 million reported in the prior year period. KKD raised its fiscal 2014 outlook for adjusted earnings per share for fiscal 2014 to between $0.59 and $0.63 compared to the previous range of $0.53 to $0.57. Analysts are expected earnings per share of $0.38.

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: IVV , IWF , IWM , QQQ , SPY

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