ETF Preview: ETFs Track Futures Lower; Investors Look Ahead to Earnings Season


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

SPDR S&P 500 ( SPY ): +0.49%

iShares S&P 500 ( IVV ): +0.51%

PowerShares QQQ ( QQQ ): +0.63%

iShares Russell 2000 ( IWM ): +0.60%

iShares Russell 1000 Growth ( IWF ): +0.45%

iShares MSCI Emerging Markets Index (EEM): +0.59%

United States Oil Fund (USO): +0.39%

SPDR Gold Shares (GLD): +0.42%

Select Financial Sector SPDRS (XLF): +0.62%

Monday's Pre-Market Movers

SPY, -0.19%

EEM, -0.29%

GDX, -0.91%

XLF, flat

VXX, +0.26%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV, were weaker in recent pre-market trading . Meanwhile, actively traded PowerShares QQQ ( QQQ ) was down 0.2% after hitting a 13-year high in the previous session.

U.S. stock futures edged lower ahead of Monday's open and following the record highs hit in Thursday's session, on the back of the upbeat June U.S. jobs report. There are no economic reports or speeches from Federal Reserve members on tap Monday, but investors are looking ahead to the start of the earnings season. Alcoa (AA) will unofficially kick off the earnings season with its report of Q2 financial results in Tuesday's after-hours session.

Power Play: Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were unchanged. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was also flat.

In sector news, CASI Pharmaceuticals (CASI) was up 4.20% after it said its ENMD-2076 has received the orphan-drug designation from the U.S. Food and Drug Administration for the treatment of hepatocellular carcinoma. The company is completing a Phase II trial of ENMD-2076 in ovarian cancer. In addition, CASI is conducting a dual-institutional Phase II study of ENMD-2076 in triple-negative breast cancer, a Phase II study in advanced/metastatic soft tissue sarcoma and a Phase II study in advanced ovarian clear cell carcinomas.

Winners and Losers


Select Financial Sector SPDRs (XLF) was flat. Direxion Daily Financial Bull 3X shares (FAS) was down 0.5% and its bearish counterpart, FAZ, was up 0.3%.

Among sector news, ACE Ltd. (ACE) said it has reached a definitive agreement to acquire the large corporate property and casualty business of Itau Seguros, S.A. from Itau Unibanco S.A. for approximately $685 million. Upon completion of the transaction, ACE, which has a longstanding presence in Brazil, will be the largest commercial P&C insurer in the largest market in Latin America. ACE trades in a 52-week range of $87.11 to $108.61, with shares having closed up 0.7% at $105.15 Thursday.


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.

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

In corporate news, Wi-Lan (WILN, WIN.TO) was up 1.3%, after the company said it has signed an agreement granting Nokia Networks (NOK) a multi-year license to a broad portfolio of wireless patents used in the phone maker's wireless infrastructure products. Separately, Nokia agreed to sell a portfolio of patents to the dual-listed technology licensing company related to various current and future wireless handset and infrastructure technologies. The terms of the agreement weren't disclosed.


Dow Jones U.S. Energy Fund (IYE) was flat; Energy Select Sector SPDR (XLE) slipped lower, down 0.05%.

Rice Energy (RICE) was down 0.7% after the company said it agreed to acquire approximately 22,000 net acres and 12 developed Marcellus wells in western Greene County, Pennsylvania, from Chesapeake Appalachia and its partners. Rice Energy will pay approximately $336 million for the assets and expects to close the transaction in August.


Crude was down 0.2%; United States Oil Fund (USO) was flat. Natural gas was down 2.2% and United States Natural Gas Fund (UNG) was down 1.5%.

Gold was down 0.4%, while silver was down 0.5%. Among rare metal funds, SPDR Gold Trust (GLD) was down 0.3% and iShares Silver Trust (SLV) was down 0.6%.


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

Among stocks, Archer-Daniels-Midland (ADM) was down 0.2% after the agricultural-commodities company confirmed Monday it has agreed to acquire WILD Flavors GmbH, for EUR 2.3 billion (about $3.13 billion) in enterprise value. The announcement comes after the stock hit a six-year high Thursday at $45.95 on reports it was close to a deal to buy the supplier of natural ingredients.

Under the deal, ADM will pay EUR 2.2 billion to WILD Flavors shareholders Dr. Hans-Peter Wild and funds affiliated with Kohlberg Kravis Roberts & Co. L.P., and assume approximately EUR100 million of net debt. The transaction is contingent on regulatory approvals and is expected to close by year-end.

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 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: SPY , IVV , QQQ , IWM , IWF

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