ETF Preview: ETFs, Futures Firmer Following July Retail Sales; Business-Inventory Data Still Ahead

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

SPDR S&P 500 ( SPY ): -0.13%

iShares S&P 500 ( IVV ): -0.14%

PowerShares QQQ ( QQQ ): -0.04%

iShares Russell 2000 ( IWM ): -0.69%

iShares Russell 1000 Growth ( IWF ): -0.26%

iShares MSCI Emerging Markets Index (EEM): +0.11%

United States Oil Fund (USO): -0.64%

SPDR Gold Shares (GLD): +0.02%

Select Financial Sector SPDRS (XLF): +0.22%

Wednesday's Pre-Market Movers

SPY, +0.39%

VXX, -2.75%

EEM, +0.70%

GDX, -0.11%

IWM, +0.31%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV, were higher in Wednesday's pre-market trading . Actively traded PowerShares QQQ ( QQQ ) was up 0.4%.

U.S. stock futures were higher ahead of Wednesday's open. The U.S. Commerce Department's reported overall retail sales for July were unchanged from the prior month. The data missed expectations for an increase of 0.2%. Excluding autos, retail sales rose 0.1% in July

Investors will also focus on speeches by Federal Reserve speakers: New York Federal Reserve President William Dudley and Boston Fed President Eric Rosengren will speak at 9:05 a.m. ET and 9:25 a.m. ET, respectively. Also on the calendar, U.S. business inventory data for June will be released at 10 am ET.

Power Play: Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were unchanged. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 0.6%.

Rigel Pharmaceuticals (RIGL) was down 10% after announcing R348, its ophthalmic JAK/SYK inhibitor, didn't meet the primary or secondary endpoints in a recently completed Phase 2 clinical study in patients with dry eye disease. RIGL has decided not to initiate any new studies of R348 for this indication, but is continuing its Phase 2 study of dry eye in patients with graft versus host disease (GvHD). It also said it discontinued its indirect AMPK activator program, R118, due to its side-effect profile in Phase 1 clinical trials. However, the company will continue its direct AMPK activator research program.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) was up 0.45%; Direxion Daily Financial Bull 3X shares (FAS) was up 0.7% and its bearish counterpart, Direxion Daily Financial Bear 3X shares (FAZ), was down 0.9%.

Ares Management (ARES) reported Q2 earnings of $0.33 per share and revenue of $131.6 million, which was up 47% from a year prior. ARES was steady at $17.99 in pre-market trading.

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 inactive. SPDR S&P International Technology Sector ETF (IPK) was also flat.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were unchanged after posting losses in the previous session.

King Digital Entertainment (KING) was down 23% after saying Q2 non-GAAP EPS were $0.59, meeting the Thomson Reuters mean. Sales were about $594 million, missing estimates for $608.35 million. It lowered its FY outlook, now expecting Q3 gross bookings to decline sequentially to $500 million to $525 million. Q4 gross bookings are seen up from Q3.

It approved a special dividend to shareholders in the aggregate amount of $150 million to be payable to shareholders of record on September 30. This represents a dividend of approximately $0.469 per ordinary share (based on shares outstanding as of August 12). It also said its executive officers, directors, founders, and affiliated funds, including Bellaria Holding S.a.r.l of whom Apax WW Nominees Ltd is the sole shareholder, together representing 80% of outstanding shares, have agreed to a new lock up through the date following the company's announcement of Q4 and 2014 earnings.

Energy

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) were both flat in pre-market trading.

InterOil (IOC) reported a Q2 loss that was the same as a year ago after the sale of its refinery and downstream businesses to Puma Energy. The oil and gas production and exploration company said its loss from continuing operations was flat at $0.31 per share. On a reported basis, net income was $52.3 million or $1.05 per diluted share, up from $13.2 million, or $0.27 per share a year earlier, boosted by a gain on the downstream businesses.

Commodities

Crude was up 0.11%; natural gas was down 2.3%. United States Oil Fund (USO) was up 0.3%; United States Natural Gas Fund (UNG) was up 2.6%.

Gold was up 0.3%, and silver was up 0.6%. Among rare metal funds, SPDR Gold Trust (GLD) was up 0.2% and iShares Silver Trust (SLV) was up 0.3%.

Consumer

Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were flat.

Retail ETFs SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR), and Market Vectors Retail ETF (RTH) were also unchanged.

Macy's (M) was down some 5% after it said it earned $0.80 per share in Q2, missing the Thomson Reuters mean for $0.86. Sales were $6.267 billion, compared with estimates for $6.30157 billion. The company's second half same-store sales growth is seen 2% to 3%, with FY same-store sales growing 1.5% to 2%. FY comparable sales together with comparable sales of departments licensed to third parties now are expected to increase by 2% to 2.5%. Previous guidance was for full-year comparable sales to increase by 2.5% to 3%. The company continues to expect full-year 2014 earnings per diluted share in the range of $4.40 to $4.50, consistent with guidance previously provided. The Street consensus was for EPS of $4.47.



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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