Active broad-market exchange-traded funds ahead of Wednesday's regular session:
SPDR Select Sector Fund - Financial ( XLF ): +0.2%
SPDR S&P 500 ( SPY ): -0.1%
VelocityShares 3x Long Natural Gas ETN ( UGAZ ): +3.1%
iPath S&P 500 VIX Short Term Futures ETN ( VXX ): +1.4%
ProShares Trust Ultra VIX Short Term Futures ETF ( UVXY ): +2.9%
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM and IVV were lower. Actively traded PowerShares QQQ (QQQ) was down 0.4%.
US stock futures were pointing to a lower open as tech stocks face another session with selling pressure. While markets generally lauded the tax reform just passed by the Senate this week, investors are looking at the possibility that the tax plan could retain the corporate alternative minimum tax, which would hit tech companies harder than most companies in other sectors.
Looking ahead to economic data, productivity and labor costs will be reported at 8:30 am ET.
Power Play: Technology
Tech funds Technology Select Sector SPDR ETF (XLK) was up 0.1% while other tech funds 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 flat.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were both inactive.
21Vianet Group (VNET) was down more than 7% after it reported revenue of RMB886.0 million or $133.2 million, compared with RMB968.0 million in the year-ago quarter. Adjusted diluted loss per share for the quarter was RMB0.10, which represents the equivalent of RMB0.60 or US$0.12 per ADS, compared with RMB0.12 per ADS in the year-ago quarter. Total adjusted loss was RMB68.8 million, or US$10.3 million, vs. a year ago loss of RMB91.4 million
Winners and Losers
Select Financial Sector SPDRs ( XLF ) was down 0.2%. Direxion Daily Financial Bull 3X shares (FAS) and its bearish counterpart, FAZ were quiet in pre-market trade.
Cowen (COWN) said after markets closed on Tuesday that it has priced its public offering of $120 million of 7.35% senior notes due 2027. The company also said it has granted the underwriters an option for 30 days to buy up to an additional $18 million of the notes. The company will use the net proceeds to redeem the company's outstanding 8.25% senior notes due 2021. The remainder of the net proceeds would be used for general corporate purposes. The closing of the offering is expected to occur on Friday.
Dow Jones US Energy Fund (IYE) was flat and Energy Select Sector SPDR (XLE) was down 0.1%.
Bill Barrett (BBG) slid 10.8% after the company said it agreed to combine with Fifth Creek Energy Company, LLC in a deal worth approximately $649 million. The companies will each become subsidiaries of a newly formed holding company, which will become the publicly listed and traded holding company for the combined Bill Barrett and Fifth Creek. In the transaction, Bill Barrett's stockholders will exchange their Bill Barrett common stock for New BBG common stock on a 1-for-1 basis, and Fifth Creek's current sole owner will receive 100 million shares of the New BBG's common stock. It also agreed to a privately negotiated exchange with a holder of the company's 7.0% Senior Notes due 2022, in which the holder has agreed to exchange $50 million aggregate principal amount of the Notes for newly issued shares of the company's common stock plus the cash payment of accrued and unpaid interest. The number of shares exchanged will be calculated based on the volume-weighted average price of trading on Dec. 6 and the value of the bonds will be at 102% of par.
Crude was down 1.3%. United States Oil Fund (USO) was down 1.3%. Natural gas was down 1.6% while United States Natural Gas Fund (UNG) was down 1.5%
Gold was up 0.3%. SPDR Gold Trust (GLD) was down 0.1%. Silver was up 0.2%, while iShares Silver Trust (SLV) was down 0.2%.
Consumer Staples Select Sector SPDR (XLP) was up 0.1% while other funds Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were inactive.
Consumer Discretionary Select Sector SPDR (XLY) rose 0.3% and retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were flat.
Dave & Buster's Entertainment (PLAY) was up 7.5% after it said Q3 sales increased 9.3% to $250.0 million from the year-earlier period but missed the CapIQ mean for $255.7 million. Comparable store sales decreased 1.3%. Net EPS rose four cents to $0.29 from last year and topped the CapIQ mean for GAAP EPS of $0.24 and normalized EPS of $0.23. It lowered its FY17 sales outlook to $1.148 billion to $1.155 billion from $1.160 billion to $1.170 billion previously. It now sees a comparable store sales increase of 0.0% to 0.75%, down from 1% to 2% previously. For FY18, it expects low-double-digit growth in revenue and high-single-digit to low-double-digit growth in EBITDA on a comparable 52-week basis.
Health care funds Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH), were quiet. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was flat.
HealthEquity (HQY) was down 1.4% after the company reported Q3 adjusted earnings of $0.17 per share, compared with the prior-year period's $0.10 per share. Analysts polled by Capital IQ were expecting EPS of $0.16. Revenue was $56.8 million, up 31% from $43.4 million in the same quarter last year. The Street view is for revenue of $55.4 million. The company now expects fiscal 2018 adjusted EPS of $0.64 - $0.66 on revenue of $225 million - $228 million. The Street view is for EPS of $0.68 on revenue of $227 million . The prior guidance was for EPS of $0.64 - $0.68 on revenue of $223 million - $228 million.