ETF Preview: ETFs, Futures Turn Positive as Trade Gap Widens Less Than Expected

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

SPDR S&P 500 ( SPY ): +0.70%

iShares S&P 500 ( IVV ): +0.58%

PowerShares QQQ ( QQQ ): +0.18%

iShares Russell 2000 ( IWM ): +0.90%

iShares Russell 1000 Growth ( IWF ): +0.36%

iShares MSCI Emerging Markets Index (EEM): +1.38%

United States Oil Fund (USO): +1.69%

SPDR Gold Shares (GLD): +1.93%

Select Financial Sector SPDRS (XLF): +0.10%

Pre-Market Most Active:

SPY, +0.04%

EEM, +0.29%

XLF, +0.05%

EWJ, +3.36%

IWM, +0.07%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are firmer. Actively traded PowerShares QQQ ( QQQ ) is up 0.16%.

U.S. stock futures are pointing to a positive open following the Commerce Department's trade data report, which showed that the trade deficit rose 8.5% to $40.3 billion in April, less than the expectations of an increase to $41.5 billion from $38.8 billion in March, according to economists polled by MarketWatch. Still ahead, investors will be paying close attention to speeches from two voting Fed officials: Gov. Sarah Bloom Raskin at 12:30 p.m. ET and Kansas City Fed President Esther George at 1:30 p.m. ET.

Winners and Losers

Financial -

Select Financial Sector SPDRs (XLF) is up 0.05%. Direxion Daily Financial Bull 3X shares (FAS) is up 0.37%. Its bearish counterpart, FAZ, is down 0.46%.

Among financial stocks, HSBC (HBC) is tipping higher, up 0.07%, following a Bloomberg report that the bank is being sued by New York Attorney General Eric Schneiderman, who says it "broke New York foreclosure law and put homeowners at greater risk of losing their homes".

Technology -

Tech ETFs 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 leaning higher.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) look to open in the green.

SPDR S&P International Technology Sector ETF (IPK) is headed for a flat to higher open.

In sector news, Salesforce.com (CRM) is acquiring ExactTarget (ET), a cloud marketing platform, for approximately $2.5 billion. Salesforce.com will commence a tender offer for all outstanding shares of ExactTarget for $33.75 per share, in cash. The transaction has been unanimously approved by the Boards of Directors of both companies. Salesforce.com shares are up 2.27%; ET is up 53.17% and is well past a previous 52-week high of $24.93.

Energy -

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) are heading for a firmer start.

In sector news, Gastar Exploration (GST) announced today that Gastar Exploration USA, Inc., the wholly-owned subsidiary of Gastar, declared a monthly cash dividend on its 8.625% Series A Preferred Stock for June 2013. The June 2013 dividend payment will be an annualized 8.625% per share, which is equivalent to $0.179688 per share. The dividend on the Series A Preferred Stock is payable on July 1 to holders of record at the close of business on June 14.

Commodities -

July crude is down 0.12%; July natural gas is up 0.58%. United States Oil Fund (USO) is up 0.12%. United States Natural Gas Fund (UNG) is up 0.42%.

August gold is down 1.10% and silver for July delivery is down 1.68%. Among rare metal funds, SPDR Gold Trust (GLD) is down 1.07%; iShares Silver Trust (SLV) is down 1.41%.

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, Dollar General (DG) is down 5.34% after it reported Q1 adjusted EPS of $0.71, in line with the analyst consensus on Capital IQ. Sales were $4.23 bln, matching expectations. For FY13, the company expects total sales to increase 10% to 11% over the FY12. Same-store sales are expected to increase 4 to 5 percent. Sales to date in the 2013 second quarter are solid. The company's 2013 full year gross profit, as a percentage of sales, is expected to decrease from the full year 2012 gross profit rate at a level in line with the decrease experienced in the 2013 first quarter. Adjusted operating profit for 2013 is expected to be in the range of $1.73 billion to $1.77 billion. EPS is seen at $3.15 to $3.22 per share. The Street view is $3.28 per share.

Power Play -

Healthcare -

Healthcare ETFs Health Care SPDR (XLV), Vanguard Health Care ETF (VHT), and iShares Dow Jones US Healthcare (IYH) are pointing to a negative start. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is also pointing lower.

In corporate news, AstraZeneca (AZN) is down 0.35% while partner, Rigl Pharmaceuticals is down 17.22% after the companies announced that based on the totality of results from its OSKIRA Phase III programme, including the data previously reported from OSKIRA-1, AstraZeneca has decided not to proceed with regulatory filings for fostamatinib. The company said it will return the rights to the compound to Rigel Pharma which will decide whether it will continue the ongoing studies and pursue regulatory filings.



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 MTNewswires.com. 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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