ETF Preview: ETFs Weaker, Futures Slip Lower Following ADP Report, Revised Q1 Productivity Data


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

SPDR S&P 500 ( SPY ): -0.50%

iShares S&P 500 ( IVV ): -0.45%

PowerShares QQQ ( QQQ ): -0.52%

iShares Russell 2000 ( IWM ): -1.06%

iShares Russell 1000 Growth ( IWF ): -0.60%

iShares MSCI Emerging Markets Index (EEM): -1.15%

United States Oil Fund (USO): +0.12%

SPDR Gold Shares (GLD): -0.94%

Select Financial Sector SPDRS (XLF): +0.91%

Pre-Market Most Active:

SPY, -0.28%

EWJ, -2.27%

IWM, -0.26%

XLF, -0.41%

EEM, +0.07%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are weaker. Actively traded PowerShares QQQ ( QQQ ) is down 0.37%.

U.S. stock futures continue to slip lower following Automatic Data Processing reporting that the economy gained 135,000 jobs in the private-sector for the month of May, a slight increase over the previous month of April. However, this was less than the 157,000 jobs expected by economists polled by Investors are also digesting two reports from the government - revised Q1 productivity, which was revised up 0.5%, in line with forecasts, and Q1 labor costs, which was revised down 4.3%, versus the consensus of an increase of 0.6%. A slew of economic data is still on tap today, including factory orders for April and ISM services data for May, both at 10 am ET; petroleum inventories at 10:30 am ET; and the Fed's Beige Book for June at 2 pm ET.

Winners and Losers

Financial -

Select Financial Sector SPDRs (XLF) is down 0.41%. Direxion Daily Financial Bull 3X shares (FAS) is down 1.45%. Its bearish counterpart, FAZ, is up 1.31%.

Among financial stocks, RCS Capital Corporation (RCAP), a holding company with focus on the retail direct investment industry, announced the pricing of its initial public offering of 2.5 million shares of Class A common stock at $20 per share. The shares will begin trading on the New York Stock Exchange today under the ticker symbol "RCAP". The underwriters have the option to purchase from the company up to an additional 375,000 shares of Class A common stock, on the same terms and conditions.

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 lower.

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

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

In sector news, HP (HPQ) is down 0.24% after it announced that it has inked a $220 million contract to continue its 20-year relationship as Indiana's Medicaid fiscal agent.

Energy -

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

In sector news, Nordic American Tanker Ltd. (NAT) subsidiary Orion Tankers Ltd. has renewed its commercial agreement with a subsidiary of ExxonMobil Corporation (XOM). The contract provides for a firm 2 year extension to the initial one year agreement that took effect May 2012. NAT shares are flat while XOM shares are down 0.20%.

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, Shares of Toyota (TM) is down 2.62% after the company said it will conduct a voluntary global recall involving approximately 242,000 Prius and Lexus hybrid cars made between March and October 2009 due to a problem causing nitrogen gas to leak into the brake fluid, reducing the effectiveness of the brakes.

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, Neurometrix (NURO) is down 10% after the company announced that it entered into a definitive securities purchase agreement with a single institutional investor, which provides for the issuance of $5 million of shares of Series A-1 and Series A-2 convertible preferred stock and five year warrants to purchase up to 2,386,635 shares of common stock at an exercise price of $2.00 per share. Subject to certain ownership limitations, the Series A-1 and Series A-2 convertible preferred stock is convertible at any time into shares of common stock at an initial conversion price of $2.095 per share. The preferred stock is not entitled to dividends and will not have any preferences over the company's common stock, including liquidation rights.

Power Play -

Commodities -

ETFs in the commodities space, particularly for oil, are expected to see active trade with the petroleum inventories due out 10:30 am ET. July crude is up 0.47%; July natural gas is up 0.43%. United States Oil Fund (USO) is up 0.45%. United States Natural Gas Fund (UNG) is up 0.56%.

August gold is up 0.57% and silver for July delivery is up 0.27%. Among rare metal funds, SPDR Gold Trust (GLD) is up 0.13%; iShares Silver Trust (SLV) is up 0.32%.

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: IVV , IWF , IWM , QQQ , SPY

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