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ETF Preview: ETFs, Futures Point Higher, Tracking Tech; Investors Focus on Fed Speakers


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

SPDR S&P 500 ( SPY ): +0.4%

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): -1.7%

SPDR Select Sector Fund - Financial ( XLF ): +0.4%

iShares MSCI Emerging Index Fund ( EEM ): +0.6%

VanEck Vectors Gold Miners ETF ( GDX ): -0.7%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were mostly in the green. Actively traded PowerShares QQQ (QQQ) was down 0.9%.

U.S. stock futures were pointing higher as the Dow industrials were on track to open at a fresh record high. Tech stocks are leading gainers, rebounding from their losses last week.

With no economic data on tap, investors will be focusing on speeches by a couple of Federal Reserve officials. New York Fed President William Dudley just gave a speech in Plattsburgh, New York. Looking ahead, Chicago Fed President Charles Evans will be giving a speech at the New York University at 7 p.m. ET.

Power Play: Energy

Dow Jones U.S. Energy Fund (IYE) was quiet in pre-market trading while Energy Select Sector SPDR (XLE) was up 0.1%.

Spark Energy (SPKE) was down 73.4% after it said it received regulatory approval under the Hart-Scott-Rodino Act for its pending acquisition of Verde Energy, the company said Monday. In addition, as of Monday, shares of the company's common stock will begin trading on a split-adjusted basis reflecting the company's two-for-one stock split.

Winners and Losers

Financial

Select Financial Sector SPDRs ( XLF ) was up 0.6%. Direxion Daily Financial Bull 3X shares (FAS) was up 0.9% while its bearish counterpart, FAZ, was down 0.5%.

Blackstone (BX) and Celanese (CE) said over the weekend that they have signed a definitive agreement to form a joint venture to create a global acetate tow supplier that is expected to generate 2017 annual pro forma revenue of approximately $1.3 billion. Separately, Sky News reported that Blackstone is buying The Office Group, a London-based owner of offices used by Facebook (FB), in a GBP500 million ($640 million) deal. BX shares were up 1% and CE shares were up 1.6%.

Technology

Tech funds 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 quiet in pre-market trading. SPDR S&P International Technology Sector ETF (IPK) was inactive.

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

Alphabet (GOOG, GOOGL) shares were higher after the company released a statement outlining how Google's video-sharing service, YouTube, intends to fight the online proliferation of pro-terrorism messages. First, the company says it is increasing its use of technology to help identify extremist and terrorism-related videos. Second, the company says it will greatly increase the number of independent experts in YouTube's Trusted Flagger programme. Third, the company said it will be taking a tougher stance on videos that do not clearly violate its policies. Finally, YouTube says it will expand its role in counter-radicalization efforts, using targeted online advertising to reach potential Isis recruits, and redirect them towards anti-terrorist videos that can change their minds about joining.

Commodities

Crude was down 0.1%. United States Oil Fund (USO) was up 0.3%. Natural gas was down 5.1% while United States Natural Gas Fund (UNG) was down 4.7%.

Gold was down 0.4%. SPDR Gold Trust (GLD) was down 0.4%. Silver was up 0.4% while iShares Silver Trust (SLV) was down 0.5%.

Consumer

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

Consumer Discretionary Select Sector SPDR (XLY) and retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were also flat.

Philip Morris International Inc (PM) said it plans to invest approximately $320 million in a new high-tech facility in Dresden, Germany, to produce HEETS, the tobacco units to be used with the company's electronic tobacco heating device IQOS. Construction of the 80,000 m2 facility is scheduled to begin in late 2017.

Health Care

Health care funds 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 flat.

Clovis Oncology (CLVS) said in a regulatory filing it agreed to settle a class action lawsuit alleging the company and certain of its officers and underwriters violated federal securities laws by making allegedly false and misleading statements regarding the progress toward Food and Drug Administration approval and the potential for market success of rociletinib. It said the class will receive approximately $142.0 million, comprised of $25.0 million in cash and the issuance by the company of a to be determined number of shares of its common stock equal to $117.0 million divided by the volume weighted average price of the company's common stock over the 10 trading days immediately preceding the date of the hearing set by the court to consider the final approval of the settlement. As a result of the settlement, the company expects to record a charge to earnings and a liability in Q2 of approximately $142.0 million and a receivable of approximately $25.0 million from the insurance carriers. The proposed settlement contains no admission of wrongdoing.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.



This article appears in: Investing , ETFs
Referenced Symbols: SPY , VXX , XLF , EEM , GDX


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