ETF Preview: ETFs, Futures Higher as M&A News Lifts Sentiment; New Homes Sales, Dallas Fed Manufacturing Still Ahead

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

SPDR S&P 500 ( SPY ): -0.16%

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

PowerShares QQQ ( QQQ ): +0.15%

iShares Russell 2000 ( IWM ): +0.02%

iShares Russell 1000 Growth ( IWF ): +0.01%

iShares MSCI Emerging Markets Index (EEM): -0.27%

United States Oil Fund (USO): -0.37%

SPDR Gold Shares (GLD): +0.25%

Select Financial Sector SPDRS (XLF): -0.34%

Monday's Pre-Market Most Active:

SPY, +0.43%

EEM, +0.34%

VXX, -1.05%

IWM, +0.75%

QQQ, +0.44%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, were firmer. Actively traded PowerShares QQQ ( QQQ ) is up 0.44%.

U.S. stock futures were pointing higher, with the S&P 500 on track to hit 2,000, as M&A news helped lift market sentiment. Both Burger King (BKW) and Canada's Tim Hortons (THI, THI.TO) were higher after announcing their plans for a possible merger of their businesses; InterMune (ITMN) was also climbing in pre-market trading following news that it will be acquired by Roche.

In economic data, new home sales for July will be released at 10 am ET while the Dallas Fed manufacturing survey will be reported at 10:30 am ET.

Power Play

Healthcare

Health Care SPDR (XLV) , Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were flat. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 1.38%.

InterMune (ITMN) soared 36.17% in its first pre-market trades Monday after Roche announced over the weekend a deal to buy InterMune for $74 per share cash. The total deal value is about $8.3 billion.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) is up 0.35%. Direxion Daily Financial Bull 3X shares (FAS) is up 1.37%. Its bearish counterpart, FAZ, is down 1.44%.

CME Group (CME) shares were steady in pre-market trade at $74.86 after the financial products company experienced a trading halt caused by a glitch in very early trading, according to several media reports.

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 unchanged.

Semiconductor ETFs SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were also flat.

Qihoo 360 Technology (QIHU) was down 4.37% after the company reported over the weekend increased earnings and revenues for Q2 ended June 30 due to strong performance in both online advertising and Internet value-added services. Non-GAAP net income attributable to shareholders was $69.2 million, or $0.50 per diluted share, on revenues of $317.9 million. The average analyst estimate was for non-GAAP diluted EPS of $0.51 and revenues of $310.5 million, according to Capital IQ. Last year, non-GAAP net income totaled $51 million, or $0.40 per diluted share, on revenues of $151.7 million.

For Q3, revenues are expected to be between $360 million and $365 million, representing a year-over-year increase of 92% to 94% and quarter-over-quarter increase of 13% to 15%. The Capital IQ consensus is for revenues of $358 million.

Energy

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

Synthesis Energy Systems (SYMX) said Monday that the company is realigning its executive leadership to accelerate and improve the financial performance of its multiple global initiatives, including distributed power, DRI steel and Chinese joint ventures. Charles Costenbader, who joined the company as chief financial officer in September 2013, will now focus on operations as chief operating officer. Roger L. Ondreko, who joined the company in May 2014 as chief accounting officer and corporate secretary, will be given additional financial responsibilities serving as CFO and corporate secretary. Both Costenbader and Ondreko will report to Robert W. Rigdon, president and CEO.

Commodities

Crude was up 0.07%. United States Oil Fund (USO) was up 0.11%. Natural gas futures was up 1.73%. United States Natural Gas Fund (UNG) was up 1.51%.

Gold was down 0.08% while silver was up 0.06% . Among rare metal funds, SPDR Gold Trust (GLD) was down 0.15% and iShares Silver Trust (SLV) was down 0.21%.

Consumer

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

Burger King (BKW) and Canada's Tim Hortons (THI, THI.TO) were climbing higher in pre-market trading after announcing they are in discussions to combine businesses that could create the world's third-largest quick service restaurant company to be located in Canada, with approximately $22 billion in system sales and over 18,000 restaurants in 100 countries worldwide. The restaurant operators, warn, however that the transaction remains subject to negotiation of definitive agreements. There can be no assurance that any agreement will be reached or that a transaction will be consummated. BKW was up 16.19% while THI was up 16.17%.



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 11/26/2014, 04:15 PM

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