ETF Preview: ETFs, Futures Higher as Earnings Back in Focus; Google's Strong Q3 Propels Internet, Tech Stocks Up

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

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

iShares S&P 500 ( IVV ): +0.64%

PowerShares QQQ ( QQQ ): +0.57%

iShares Russell 2000 ( IWM ): +0.80%

iShares Russell 1000 Growth ( IWF ): +0.59%

iShares MSCI Emerging Markets Index (EEM): +0.58%

United States Oil Fund (USO): -1.41%

SPDR Gold Shares (GLD): +3.15%

Select Financial Sector SPDRS (XLF): +0.82%

Pre-Market Most Active:

SPY, +0.23%

GDX, +0.04%

EEM, +0.32%

VXX, -0.85%

XLF, +0.19%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are firmer. Actively traded PowerShares QQQ ( QQQ ) is up 0.74%, pushing to a new 52-week high.

U.S. stock futures are higher ahead of Friday's open, building on gains from Thursday's session, with earnings now becoming the focus after the U.S. narrowly missed defaulting on its debt. Google's (GOOG) upbeat results are driving internet and tech stocks higher. In economic data overseas, China's GDP grew 7.8% in Q3, helping boost market sentiment in global markets.

Power Play: Technology

Technology -

Internet stocks and ETFs are seeing early positive action following strong results from tech giant Google (GOOG). GOOG shares are touching all-time highs this morning and closing in on $1,000 a share in the wake of better-than-expected results reported by the company in Thursday's after-hours. Shares are currently up between 959.50 and a high of 977.74 after breaking through 962 in last night's session. Google reported Q3 revenue of $14.89 bln, better than the analyst consensus of $14.80 bln on Capital IQ. EPS was $10.74, vs. expectations of $10.37 per share.

Among internet and tech stocks with weightings in Google: First Trust DJ Internet Index Fund (FDN), iShares Dow Jones US Technology ETF (IYW), and PowerShares Nasdaq Internet Portfolio (PNQI), are leaning higher. Technology Select Sector SPDR ETF (XLK), iShares S&P North American Technology ETF (IGM), and iShares S&P Global Technology Sector (IXN) are also firmer, while PowerShares QQQ Trust, Series 1 ( QQQ ) is up 0.75%.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) look to open in the green. iShares S&P North American Technology-Software Index (IGV) looks to open in the positive, while SPDR S&P International Technology Sector ETF (IPK) is headed for a flat to higher open.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) is up 0.19%. Direxion Daily Financial Bull 3X shares (FAS) is up 0.28%. Its bearish counterpart, FAZ, is down 0.82%.

In sector news, Morgan Stanley (MS) is up 3.35% after it reported Q3 revenue of $7.9 billion, vs. the analyst consensus of $7.52 billion on Capital IQ. EPS was $0.50, vs. expectations of $0.41 per share.

Commodities -

Crude for November delivery is up 0.86% while November natural gas is down 1.03%. United States Oil Fund (USO) is leaning lower. United States Natural Gas Fund (UNG) is down 1.14%.

Gold and silver for December delivery are down, 0.51% and 0.53%, respectively. Among rare metal funds, SPDR Gold Trust (GLD) is down 0.18%; iShares Silver Trust (SLV) is up 0.14%.

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, General Motors (GM) worldwide sales rose 4.5% the first nine months of the year versus the same nine months last year, Bloomberg reports, citing an e-mailed statement from the company. Sales rose to 7.25 million with Q3 deliveries rising 5.5% to nearly 3.4 million.

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, Anacor Pharmaceuticals Inc. (ANAC) was up 23% after specialty pharmaceutical company Valeant Pharmaceuticals International Inc. (VRX) said it was ordered to make a one-time payment of $100 million in damages plus costs and fees to the biopharmaceutical company, stemming from a breach-of-contract dispute. VRX shares are flat.

Industrial -

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

Among stocks, Parker Hannifin (PH) is up 4.85% after it said its fiscal Q1 earnings rose to $1.61 per share from $1.57 and exceeding the $1.47 average analyst estimate on Cap IQ. The earnings included $0.06 per share in expenses associated with previously announced restructuring initiatives. Revenues rose to $3.23 billion from $3.21 billion, missing the consensus $3.25 billion estimate. For fiscal FY14 ending June 30, the maker of motion and control technologies and systems now expects earnings from continuing operations of $7.78 to $8.38 per share. This includes restructuring expenses of $0.47 and a gain of $1.68 per share on a joint venture between Parker Aerospace and GE Aviation. Analysts have forecast an EPS of $6.70.

Energy -

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

In sector news, Baker Hughes (BHI), an oilfields services company, posted Q3 adjusted net income of $0.81 per diluted share compared with $0.71 a year earlier, topping forecasts on Capital IQ for $0.78. Revenue rose to $5.78 billion from $5.35 billion last year, just shy of estimates for $5.8 billion.



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: IVV , IWF , IWM , QQQ , SPY

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