ETF Preview: ETFs, Futures Higher on Upbeat Corporate Earnings; Apple Financial Results in Spotlight


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

SPDR S&P 500 ( SPY ): +0.39%

iShares S&P 500 ( IVV ): +0.45%

PowerShares QQQ ( QQQ ):+0.72%

iShares Russell 2000 ( IWM ): +0.05%

iShares Russell 1000 Growth ( IWF ): +0.47%

iShares MSCI Emerging Markets Index (EEM): +0.47%

United States Oil Fund (USO): +0.94%

SPDR Gold Shares (GLD): +0.42%

Select Financial Sector SPDRS (XLF): +0.38%

Pre-Market Most Active:

SPY, +0.06%

EEM, +0.19%

EWJ, +0.76%

QQQ, +0.11%

VXX, -0.47%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are edging higher ahead of the session's open. Actively traded PowerShares QQQ ( QQQ ) is up 0.11%.

U.S. stock futures are also logging modest gains as optimism over upbeat corporate earnings continues. Market sentiment is also positive as the Federal Reserve has maintained its bond-buying program, reassuring the markets that a tapering may not come as soon as initially expected. Apple (AAPL) will be in focus as the tech giant is set to report its financial results in today's after hours.

Power Play: Healthcare

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 sector news, Zogenix (ZGNX) is up 16.12% after the FDA approved Zohydro ER (hydrocodone bitartrate) extended-release capsules, an opioid agonist, extended-release oral formulation of hydrocodone without acetaminophen, for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment and for which alternative treatment options are inadequate. Zogenix expects to launch Zohydro ER in approximately four months.

Winners and Losers

Financial -

Select Financial Sector SPDRs (XLF) is leaning higher. Direxion Daily Financial Bull 3X shares (FAS) is up 0.84%. Its bearish counterpart, FAZ, is down 0.83%.

Among financial stocks, Loews (L) was up 1% after it reported Q3 earnings of $0.73 per share, compared with the prior-year period's $0.45 per share. Analysts polled by Capital IQ were expecting EPS of $0.78, if comparable. Revenues were $3.7 billion, down from $3.71 billion in the same period last year. There were no analyst estimates for revenues.


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 looking to open in the green.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) are currently flat. SPDR S&P International Technology Sector ETF (IPK) is headed for a flat to higher open.

In sector news, Chinese online game developer Changyou.Com Ltd (CYOU) is down nearly 16% after it reported Q3 2013 non-GAAP earnings per ADS of $1.37, better than the $1.36 Capital IQ consensus but is down from $1.42 in the prior-year period. Revenues rose 10% to $183.1 million year-over-year, slightly beating the analyst estimate of $183 million. For Q4, CYOU sees revenues of $193 million to $199 million, above the consensus estimate of $191 million. For non-GAAP diluted earnings, the company is looking for $0.34 to $0.41 per ADS.

Energy -

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) are flat.

In sector news, Kosmos Energy (KOS) said it has entered into a farm-out agreement with Capricorn Exploration & Development Company Limited, a unit of of Cairn Energy PLC over its assets in the Cap Boujdour contract area in the western Sahara. Under the terms of the agreement, Cairn will acquire a 20% non-operated interest in the exploration permits for the area and will pay a disproportionate share of future exploration costs including a 3D seismic survey, an initial exploration well in 2014 and, if successful, two appraisal wells.

Commodities -

December crude is down 0.19% while natural gas for January delivery was down 1.65%. United States Oil Fund (USO) is down 0.11%. United States Natural Gas Fund (UNG) is down 1.69%.

Gold and silver for December delivery are lower, down 0.07% and 0.139%, respectively. Among rare metal funds, SPDR Gold Trust (GLD) is down 0.02%; iShares Silver Trust (SLV) is up 0.41%.

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, IMAX Corporation (IMAX, IMX.TO) has acquired a stake and a significant option position in PRIMA Cinema Inc., whose proprietary systems transmit current theatrical releases from powerhouse studios like Paramount Pictures and Universal Pictures. IMAX plans to integrate the PRIMA Cinema technology into the IMAX Private Theatre and other potential platforms, enhancing the image and sound of the content through its digital re-mastering process, which enables IMAX customers to access current theatrical releases of the highest possible quality.

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, Roper Industries (ROP) is down 1.5% after it reported adjusted diluted earnings per share were $1.42, within the company's guidance of $1.40 - $1.46. That's short of the $1.45 per share analysts expected. The company said it expects full-year adjusted diluted earnings per share to be in the range of $5.57 - $5.63 compared to its previous guidance of $5.72 - $5.8; analysts expected $5.77 for 2013. Q4 adjusted diluted earnings per share is expected to be $1.57 - $1.63, short of the $1.74 the Street estimated.

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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