ETF Preview: ETFs, Futures Track Crude Oil Higher as OPEC OKs Production Cut Deal

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

SPDR Select Sector Fund - Financial ( XLF ): +0.8%

United States Oil Fund ( USO ): +7.2%

SPDR S&P 500 ( SPY ): +0.2%

Direxion Daily Gold Miners Index Bull 3X Shares ( NUGT ): -1.1%

VanEck Vectors Gold Miners ETF ( GDX ): -0.4%

Broad-Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, inched higher. Actively traded PowerShares QQQ (QQQ) was up 0.02%.

U.S. stock futures were in positive territory ahead of the regular session's open as crude oil futures logged significant gains following a Bloomberg report that the Organization of the Petroleum Exporting Countries has agreed to cut oil production by 1.2 million barrels a day to 32.5 million barrels a day. The report cited a delegate to the group's meeting being held today in Vienna.

In economic data news, the Commerce Department reported that consumer spending rose 0.3% in October, which fell just short of expectations for a 0.5% increase. Personal income rose 0.6% in October, versus forecasts for a gain of 0.4%.

Inflation, measured by an index for personal consumption expenditures, rose 1.4% over the past 12 months - the highest rate in two years. The core PCE gauge, which excludes food and energy, increased 1.7% over the last year.

Still ahead, a reading of the Chicago PMI will be released at 9:45 am ET, while data on pending home sales will be released at 10 am ET. Two Federal Reserve officials will be giving talks later - Jerome Powell will give a speech at 11:45 am ET followed by Loretta Mester at 12.35 pm ET. Finally the Fed's Beige book will be released at 2 pm ET.

Power Play: Energy

Dow Jones U.S. Energy Fund (IYE) was up 3% and Energy Select Sector SPDR (XLE) was up 3.4% in pre-market trading .

Fairmount Santrol (FMSA) was up 12.5% after the company said late Tuesday it has repurchased $213 million of term loans outstanding under its existing credit agreement at an average of 96.3% of par through a Dutch auction. The company now has approximately $118 million of extended term B-1 loans and $723 million of term B-2 loans outstanding with both due Sept. 2019.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was up 0.5%. Daily Financial Bull 3X shares (FAS) was flat while its bearish counterpart, FAZ was down 1.2%.


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 flat.

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

GoPro (GPRO) was up 4.2% after it disclosed job cuts, a hiring freeze and division closure as part of a business restructuring that is aimed at achieving non-GAAP profitability by next year. This comes as the company recorded a "solid" holiday quarter sell-thru in the U.S. for its new HERO5 cameras. The company-wide restructuring will reduce full-year 2017 non-GAAP operating expenses to about $650 million (GAAP: $735 million), according to a statement. The overhaul includes the closure of the entertainment division, facilities reductions, and elimination of more than 200 full-time positions plus the cancellation of open positions for a reduction in force of approximately 15%. Additionally, Tony Bates will step down as president by the end of 2016.


Crude was up 7% while natural gas futures was down 0.4%. United States Oil Fund ( USO ) was up 6.9% and United States Natural Gas Fund (UNG) was down 0.6%.

Gold was down 0.4% and SPDR Gold Trust (GLD) was down 0.5%. Silver was down 0.3% while iShares Silver Trust (SLV) was flat.


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.

American Eagle Outfitters (AEO) was down 10% after the specialty retailer guided for downbeat earnings guidance for the current quarter. The company projects Q4 EPS guidance of $0.37 to $0.39. Analysts had predicted $0.45, according to Capital IQ data. For fiscal Q3 ended Oct. 29, the company reported EPS increased to $0.41 from EPS from continuing operations of $0.35 for the comparable quarter last year. That matched the average estimate of analysts polled by Capital IQ. Q3 revenue increased 2% to $941 million from $919 million last year. Analysts had predicted $941.5 million.

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 up 0.2%.

Celsion (CLSN) was up 30.7% after the company said its phase 3 clinical study exploring a possible treatment for liver cancer was recommended to continue enrolling. The trial's Data Monitoring Committee unanimously voted in favor of the study to continue enrolling, as it explores ThermoDox and optimized radio frequency ablation as a possible treatment for primary liver cancer. The company said it plans to have its 550 patients all enrolled by early 2018, currently the trial has about 40%.

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: XLF , USO , SPY , NUGT , GDX

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