ETF Preview: ETFs, Stocks Set To Decline on Stimulus Withdrawal Jitters; Emerging Markets Tank


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

SPDR S&P 500 ( SPY ): -0.14%

iPath S&P Vix Short Term Futures ( VXX ) -2.09%

iShares MSCI Emerging Markets Index ( EEM ): -0.34%

iShares MSCI Japan Index Fund ( EWJ ) +0.40%

Select Sector SPDR Fund Financial ( XLF ) -0.23%

Most Active Pre-Market

SPY -1.38%

EEM -3.08%

VXX -0.11%

XLF - 1.3%

EWJ -1.23%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are pointing to a lower start, with emerging markets funds posting sharp losses following weak manufacturing data from China. Actively traded PowerShares QQQ (QQQ) was down 1.1%.

U.S. markets look set to extend Wednesday's sell off following sharp losses in global markets, with the U.K's FTSE 100 Index down more than 2% and Germany's DAX off by about the same amount. Investors were rattled by comments from Federal Reserve Chairman Ben Bernanke on Wednesday indicating the U.S. would stop stimulus measures towards the end of this year as long as the economy continues to improve.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ); Direxion Daily Financial Bull 3X shares (FAS) look set to extend Wednesday's losses, while its bearish counterpart, FAZ is set to gain.

In company news, shares in Ebix Inc (EBIX) are slumping 39% before the bell, adding to after-hours losses of some 25%, after it and an affiliate of Goldman Sachs (GS) called off their merger because U.S. regulators have started a probe into allegations of misconduct at Ebix.

Technology -

Technology Select Sector SPDR ETF (XLK) was down 1.1%. Other tech ETFs 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 all pointing lower.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was down 1%. Semiconductor Sector Index Fund (SOXX) is off 1.1% after setting a 52-week high $65.55 on Wednesday.

SPDR S&P International Technology Sector ETF (IPK) is slightly firmer.

In company news, Cisco (CSCO) has inked a deal to acquire Composite Software for $180 million. The shares are down 0.3% in pre-market trading.

Industrial -

Select Sector SPDR-Industrial (XLI) was down 1.5%; Vanguard Industrials (VIS) is down 1.3% and iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ) is down 1.4%.

United Technologies (UTX) Pratt & Whitney unit has announced 1,000 engine orders, including options, taking total orders to more than 4,500 from more than 40 customers around the world.

The orders, announced at the Paris Air Show, include the company's new PurePower, IAE V2500 and Pratt & Whitney PW4000 engines. UTX is down 0.7% pre-market.

Energy -

Dow Jones U.S. Energy Fund (IYE) is down 0.9% and Energy Select Sector SPDR (XLE) is off 0.9%.

In energy news, FuelCell Energy (FCEL) has priced its senior convertible notes offering of $38 million principal amount of its 8.00% senior unsecured convertible notes due June 15, 2018.

The notes are convertible into shares of FuelCell Energy common stock at a conversion rate of 645.1613 shares of common stock per $1,000 principal amount of convertible notes, equivalent to a conversion price of $1.55 per share of common stock. FCEL is flat at $1.36 in pre-market.

Healthcare -

Health Care SPDR (XLV) was down 1.59%; Vanguard Health Care ETF (VHT) is off 1.5% and iShares Dow Jones US Healthcare (IYH) is down 1.59%. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was down 2%.

GlaxoSmithKline (GSK) is investing 17.5 million euros ($23.5 million) in a new venture fund led by French firm Kurma Life Sciences Partners to invest in drugs for rare diseases, reports Reuters.

Shares are currently down 2.2%.

Consumer -

Consumer Staples Select Sector SPDR (XLP) was down almost 2%; consumer ETFs iShares Dow Jones US Consumer Goods (IYK) and Vanguard Consumer Staples ETF (VDC) are also lower.

In consumer news, Pier 1 Imports (PIR) reports Q1 EPS of $0.19, in line with the analyst consensus on Capital IQ. Sales were $394.8 million, matching expectations. For FY 2014, the company expects comp store sales growth in the mid-single-digit range and EPS of $1.27 to $1.32, up from prior guidance of $1.26 to $1.31 per share. The analyst view is $1.32 per share. PIR is up 0.04% in pre-market trade.

Commodities -

Crude oil prices are down 1.3% at $96.92 a barrel. United States Oil Fund (USO) is pointing lower.

Natural gas is down 1.6%. United States Natural Gas Fund (UNG) is also pointing to a drop.

Gold has slumped 5.5%. Silver is down more than 7%. Among rare metal funds, SPDR Gold Trust (GLD) and iShares Silver Trust (SLV) are set to decline following the slumping prices in the underlying commodities.

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) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities
More Headlines for: EEM , EWJ , SPY , VXX , XLF

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