ETF Preview: ETFs, Futures Firmer Ahead of Home Prices, Consumer Confidence Data


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

SPDR S&P 500 ( SPY ): -0.34%

iShares S&P 500 ( IVV ): -0.29%

PowerShares QQQ ( QQQ ): -0.19%

iShares Russell 2000 ( IWM ): -0.70%

iShares Russell 1000 Growth ( IWF ): -0.29%

iShares MSCI Emerging Markets Index (EEM): -1.26%

United States Oil Fund (USO): -0.21%

SPDR Gold Shares (GLD): -0.26%

Select Financial Sector SPDRS (XLF): -0.73%

Pre-Market Most Active:

SPY, +0.30%

EWJ, +1.80%

EEM, +0.36%

IWM, +0.30%

XLF, +0.15%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are modestly firmer. Actively traded PowerShares QQQ ( QQQ ) is up 0.31%.

U.S. stock futures are pointing to a positive open on another earnings-heavy news day, with Pfizer (PFE), Martha Stewart (MSO) and Sprint Nextel (S) logging modest gains while Deutsche Bank (DB) and Merck (MRK) edge lower, following their respective earnings results. Investors are awaiting the economic data releases for today - the May Case-Shiller 20-City Index will be reported at 9 am ET while the Consumer Confidence report for July will be released at 10 am ET.

Winners and Losers

Financial -

Select Financial Sector SPDRs (XLF) is up 0.15%. Direxion Daily Financial Bull 3X shares (FAS) is up 1.30%. Its bearish counterpart, FAZ, is down 0.31%.

Among financial stocks, Deutsche Bank (DB) is down 4.32% after the global investment bank reported Q2 EPS of EUR 0.32 per share or $0.42, versus the CIQ estimate of EUR 0.82 or $1.09 EPS. Revenues of EUR 8.21 billion or $10.89 billion were below the Street view of EUR 8.39 billion or $11.13 billion.

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, Gigamon (GIMO) is up 7.84% after the company reported in Monday's after hour session that Q2 earnings were $0.13 per share, versus the Capital IQ consensus of $0.04. Revenues were $32.4 million, versus the analyst estimate of $30.94 million. In the same period last year, the company reported EPS of $0.18 on revenues of $22.5 million.

Energy -

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

In sector news, L&L Energy (LLEN) is up 12.5% after it issued guidance for fiscal 2013 late Monday. The company expects EPS of $1.08 versus the $0.89 analyst estimate.

Commodities -

September crude is down 0.81%; September natural gas is down 0.72%. United States Oil Fund (USO) is down 0.78%. United States Natural Gas Fund (UNG) is down 0.87%.

December gold is down 0.39% and silver for September delivery is down 1.03%. Among rare metal funds, SPDR Gold Trust (GLD) is down 0.35%; iShares Silver Trust (SLV) is down 0.63%.

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 higher start.

In sector news, Herbalife (HLF) is up 6.67% after it reported late Monday Q2 net sales of $1.2 billion, reflecting an increase of 18% compared to the same time period in 2012, on volume point growth of 14%. Adjusted net income for the quarter of $150.7 million, or $1.41 per diluted share, compares to Q2 2012 net income of $132.0 million and EPS of $1.09, respectively. Analysts expected $1.18 EPS on $1.2 billion in revenue. For Q3 2013, the company expects EPS of between $1.09 and $1.13; for fiscal 2013, it expects EPS of between $4.83 and $4.95. The Street expects EPS of $1.16 and $4.80, respectively.

Healthcare -

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

In corporate news, Aetna (AET) is up 3.31% after it reported Q2 earnings of $1.52 per share, ex one-time items, versus the Capital IQ consensus of $1.40. Revenues were $11.5 billion, versus the analyst estimate of $11.99 billion. The company now expects FY13 EPS of $5.80 - $5.90, versus the Street view of $5.82.

Power Play -

Industrial -

Industrial ETFs are leaning lower, weighed by fertilizer companies Potash Corp./Saskatchewan (POT) and Mosaic (MOS), which plunged in the pre-market session, down 25.33% and 28.87%, respectively, ollowing media reports that Uralkali, a leading potash producer in Russia, will halt its export sales through one of two big potash cartels and instead use its own Uralkali Trading for exporting.

Financial Times reported that Uralkali pulled out of the Belarus Potash Corporation export cartel, which controls almost half of the potash market in the world. Uralkali had alleged that Belarus Potas violated their existing agreements and was selling outside their partnership, the report added.

Fertilizer fund, Global X Fertilizers/Potash (SOIL) is currently flat but could open in the negative. Other ETFs that have exposure to POT and MOS, like MSCI Global Agriculture Producers ETF (VEGI), Global Agriculture Portfolio (PAGG) and Market Vectors-Agribusiness ETF (MOO) could also see some losses.

Industrial ETFs Vanguard Industrials (VIS), iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ), and Select Sector SPDR-Industrial (XLI) are expected to open lower.

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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