ETF Preview: ETFs, Futures Weaker Despite Upbeat Jobless Claims, Consumer Prices Data

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Active broad-market exchange-traded funds at the close of Wednesday's regular session:

SPDR S&P 500 ( SPY ): +0.53%

iShares S&P 500 ( IVV ): +0.57%

PowerShares QQQ ( QQQ ): +0.82%

iShares Russell 2000 ( IWM ): +0.75%

iShares Russell 1000 Growth ( IWF ): +0.53%

iShares MSCI Emerging Markets Index (EEM): -0.02%

United States Oil Fund (USO): +2.21%

SPDR Gold Shares (GLD): -0.19%

Select Financial Sector SPDRS (XLF): +1.19%

Pre-Market Movers

SPY, -0.25%

XLF, +0.14%

EEM, -0.22%

QQQ, -0.12%

IWM, -0.15%

Broad Market Indicators

Most broad-market exchange-traded funds, including SPY, IWM, IVV are mixed to lower. Actively traded PowerShares QQQ ( QQQ ) was down 0.12%.

U.S. stock futures faltered and are mostly in negative territory despite the Labor Department's report that weekly initial jobless claims fell by 2,000 to 326,000 - the lowest level in six weeks. Economists polled by MarketWatch were expecting claims to total 330,000 on a seasonally adjusted basis. Meanwhile, December consumer prices rose a seasonally adjusted 0.3%; core CPI, excluding volatile food and energy costs, was up 0.1%. Best Buy (BBY) is also weighing on market sentiment as the multinational retailer of consumer electronics posted disappointing financial results.

Power Play: Consumer

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

Among retail ETFs, SPDR S&P Retail (XRT) is down 0.52% while other retail funds PowerShares Dynamic Retail (PMR), and Market Vectors Retail ETF (RTH) could see similar losses following Best Buy's (BBY) weak financial results.

Best Buy shares are falling to fresh lows, down nearly 30%, after the company reported total revenue for the holiday period, the nine weeks ended Jan. 4, 2014, at $11.45 billion, down from $11.75 billion recorded in the year ago period. Domestic comparable store sales declined 0.9%. The company now estimates that its fourth quarter non-GAAP operating income rate will be 175 to 185 basis points lower than last year.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) is up 0.14%. Direxion Daily Financial Bull 3X shares (FAS) is down 0.86% and its bearish counterpart, FAZ is up 0.87%.

In sector news, Goldman Sachs (GS) is up 0.42% after it reported Q4 revenue of $8.78 billion, down from $9.23 billion last year. Earnings were $4.60, down from $5.60 per share last year. The results were ahead of the analyst consensus on Capital IQ of $7.73 billion in revenue and earnings of $4.19 per share.

Technology

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 quiet in pre-market trading. SPDR S&P International Technology Sector ETF (IPK) remains flat as well.

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

In sector news, iGATE Corporation (IGTE) is down 0.52% after it posted Q4 earnings of $0.49 per share and revenue of $299.3 million, versus the Street consensus of $0.48 per share on $296 million in revenue.

Energy

Dow Jones U.S. Energy Fund (IYE) and Select Sector SPDR (XLE) are flat in pre-market trading.

In sector news, Pengrowth Energy Corp. (PGH) said its board set a 2014 capital budget of $715 million and an annual average production target of 71,000 to 73,000 barrels of oil equivalent per day, with both the capital budget and production target down from 2013 following some noncore asset dispositions last year.

Commodities

February crude was up 0.2% while United States Oil Fund (USO) is down 0.12%. March natural gas is up 3.44%; United States Natural Gas Fund (UNG) is up 3.32%.

February gold is down 0.06%, and SPDR Gold Trust (GLD) is down 0.23%. March silver is down 0.42%; iShares Silver Trust (SLV) is down 0.41% this morning.

Healthcare

Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) are flat pre-market. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was flat after seeing gains in the previous session.

Among stocks, UnitedHealth Group Inc. (UNH) is down 2.46% after the health and well-being company reported Q4 diluted EPS of $1.41, a penny better than the analyst consensus on Capital IQ. Revenues for the period totaled $31.1 billion, up from $28.8 billion last year and in line with expectations. The company continues to estimate 2014 revenues of $128 billion to $129 billion and net earnings in the range of $5.40 to $5.60 per share. The Street is at $131.9 bln in revenue and earnings of $5.62 per share.



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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