ETF Preview: ETFs, Futures Point to Positive Open As BOJ Maintains Interest Rate; FOMC Policy Announcement, Fed Chair Yellen Speech Ahead


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

SPDR S&P 500 ( SPY ): +0.3%

iShares MSCI Emerging Index Fund ( EEM ): +1%

United States Oil Fund ( USO ): +1.7%

SPDR Select Sector Fund - Financial ( XLF ): +0.5%

iShares MSCI Japan Index Fund ( EWJ ): +6.5%

Broad-Market Indicators

Most broad-market exchange-traded funds, including SPY, IWM, IVV and others, were inching higher. Actively traded PowerShares QQQ (QQQ) was up 0.4%.

U.S. stock futures were pointing to a positive open following the announcement from the Bank of Japan that it will keep its interest rates steady at minus 0.1%. Japan's central bank also launched a 10-year interest rate target, saying it will keep interest rates at around zero as part of its new monetary policy framework which aims to stoke inflation.

Investors are also optimistic ahead of the policy announcement of the Federal Reserve at 2 p.m. ET as the Federal Open Market Committee concludes its two-day meeting later. This will be followed by a press conference by Fed Chair Janet Yellen.

Power Play: Health Care

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.

Mast Therapeutics (MSTX) was down 81.4% after the company said late Tuesday top-line results from a phase 3 clinical study of its new drug vepoloxamer -- designed to treat individuals with sickle cell disease and experiencing a vaso-occlusive crisis (VOC) -- failed to meet its primary efficacy endpoint. The study did not demonstrate a statistically significant reduction in the mean duration of VOC -- 82 hours in the vepoloxamer group compared with 78 hours in the placebo group in the intent-to-treat population, according to a company statement. There were no statistically significant differences between treatment groups in the intent-to-treat population across the two secondary efficacy endpoints - rate of re-hospitalization for VOC and occurrence of acute chest syndrome.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was up 0.5%. Daily Financial Bull 3X shares (FAS) and its bearish counterpart, FAZ were flat in the pre-market session.

Jernigan Capital (JCAP) said it has invested $12.9 million in the construction of a 938 unit multi-story facility that will provide all climate-controlled storage in the heart of downtown Charlotte in North Carolina. Pamlico is the developer of the proposed project.


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 also flat.

Semiconductor ETFs SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were flat in pre-market trading .

Adobe Systems (ADBE) was up 5.1% after reporting late Tuesday Q3 non-GAAP earnings were $0.75 per share, compared with the prior-year period's $0.54 per share. Analysts polled by Capital IQ were expecting EPS of $0.72. Revenue was $1.46 billion, up 20% from $1.22 billion in the same quarter last year. The Street view is for revenue of $1.45 billion. The software company also said it expects Q4 revenue in the range of $1.55 to $1.60 billion, straddling the analyst consensus of $1.57 billion on Capital IQ. Non-GAAP earnings are targeted at $0.83 to $0.89, vs. expectations of $0.78 per share.


Dow Jones U.S. Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was up 0.9%.

Canadian Solar (CSIQ) was up 0.5% after it has signed a financing agreement with Export Development Canada for guarantees or letters of credit of up to $100 million to support the company's global activities of project development. The Royal Bank of Canada and the Toronto Branch of China Construction Bank Corporation will serve as fronting banks on the facility.


Crude was up 1.8% while natural gas futures were up 0.9%. United States Oil Fund ( USO ) was up 1.9% and United States Natural Gas Fund (UNG) was flat.

Gold was up 1.1% and SPDR Gold Trust (GLD) was up 0.8%. Silver was up 2.3% while iShares Silver Trust (SLV) was up 1.9%.


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

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

CarMax (KMX) was down 5.3% after the national used-car retailer Wednesday reported Q2 earnings of $0.84, below the $0.88 street view as compiled by Capital IQ, but above the $0.82 reported a year earlier. Carmax reported Q2 revenues of $4.00 billion, below the $4.11 billion street view, but above the $3.88 billion reported a year earlier.

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 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , ETFs
Referenced Symbols: SPY , EEM , USO , XLF , EWJ

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