ETFs, Futures Climb Higher Following 4% Growth in Q2 GDP; FOMC Decision, Policy Statement Still Ahead

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

SPDR S&P 500 ( SPY ): -0.44%

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


PowerShares QQQ ( QQQ ): -0.18%

iShares Russell 2000 ( IWM ): +0.27%

iShares Russell 1000 Growth ( IWF ): -0.32%

iShares MSCI Emerging Markets Index (EEM): -0.60%

United States Oil Fund (USO): -0.66%

SPDR Gold Shares (GLD): -0.30%

Select Financial Sector SPDRS (XLF): -0.52%

Monday's Pre-Market Movers

SPY, +0.37%

EEM, +0.45%

IWM, +0.80%

VXX, -0.35%

XLF, +0.66%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV, were higher in Wednesday's pre-market trading . Actively traded PowerShares QQQ ( QQQ ) was up 0.58%.

U.S. stock futures were also firmer, following the report that the U.S. gross domestic product grew at a 4% annual clip in the second quarter. Revised figures also show that the economy contracted by 2.1% in the first quarter instead of 2.9% as initially reported.

Meanwhile, Automatic Data Processing reported that private sector added 218,000 jobs in July, missing estimates and down from the previous month.

Looking ahead, investors will be focusing on the minutes of the Federal Reserve's meeting and its policy statement due at 2 p.m.ET.

Power Play: Technology

Technology Select Sector SPDR ETF (XLK) was up 0.35% while other tech funds 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 after seeing losses in the previous session.

Twitter ( TWTR ) was up 24.77% after the company reported Q2 adjusted EPS of $0.02, better than the analyst consensus of a loss of $0.01 per share on Capital IQ. Revenue was $312 million, vs. expectations of $283 million. For 2014, the company expects revenue of $1.31 to $1.33 billion and EBITDA of $210 to $230 million. The Street is at $1.27 billion on revenue. For Q3,it sees revenues of $330 million - $340 million, versus the Street view of $323 million.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) was up0.66%; Direxion Daily Financial Bull 3X shares (FAS) was up 1.46%while its bearish counterpart, Direxion Daily Financial Bear 3X shares (FAZ) was down 1.49%.

Barclays (BCS) American depositary shares were up 4.5% despite the U.K. bank's report of a decline in first-half earnings from the prior-year period, as currencies were partly to blame for the drop and investors were encouraged by improvements in three of its segments.

For the first six months of the year, the company posted a 7% decline in its adjusted profit before tax to 3.35 billion British pounds ($5.66 billion), which it said was largely driven by currency movements and a reduction in the Investment Bank profitability, partially offset by improvements in its personal and corporate banking, Barclaycard, and Barclays noncore segments. Its adjusted Group attributable profit was GBP1.76 billion, down from GBP2.06 billion a year earlier. Adjusted basic earnings per share slipped to 10.9 pence from 15.2 pence. Comparable analyst estimates weren't available. Adjusted Group return on average shareholders' equity was reduced to 6.5% from 7.8% in the prior-year period, reflecting a equity raised from a rights issue in Q4 2013 and the decrease in its core profit before tax, partially offset by improvements in its noncore segment.

Energy

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) were both inactive after seeing moderate losses in the previous session.

Penn West (PWE, PWT.TO) was down 10.93% Wednesday said Q2 production averaged 108,130 barrels of oil equivalent (boe) per day, or 105,702 boe per day net of adjustments. The Canadian petroleum and gas producer said it is on track to meet its 2014 production guidance, which it maintained at a range of 101,000 - 106,000 boe per day.

Commodities

Crude was up 0.42%; natural gas was down 1.02%. United States Oil Fund (USO) was up 0.35%; United States Natural Gas Fund (UNG) were down 1.05%.

Gold was down 0.09%, and silver was up 0.16%. Among rare metal funds, SPDR Gold Trust (GLD) was down 0.52% and iShares Silver Trust (SLV) was down 0.30%.

Consumer

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

Garmin (GRMN) was up 7.62% after it reported Q2 revenue of $778 million, well ahead of the analyst consensus of $710 million on Capital IQ. EPS was $1.02, versus expectations of $0.76 per share.

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 flat.

ZELTIQ Aesthetics (ZLTQ) was up 25% after it reported Q2 earnings of $0.07 per share, well ahead of expectations of a loss of $0.12 per share, according to Capital IQ. Revenue was $47.1 million, vs. the Street consensus of $35 million. For the full year 2014, the company raised its revenue guidance to a range of $160 to $165 million and forecast positive adjusted EBITDA margin. The company's prior revenue guidance was $137 to $140 million. The Street was predicting $140 million. Adjusted EBITDA margin is expected at approximately positive 2%; up from prior guidance of negative (3%).



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: SPY , IVV , QQQ , IWM , IWF

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As of 12/19/2014, 04:15 PM


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