ETF Preview: Broad Market ETFs Mixed; Medical Counters Provide Action Amid Product News, M&A

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

SPDR S&P 500 ( SPY ): +0.13%

iShares MSCI Emerging Markets Index ( EEM ): +0.67%

Market Vectors Gold Miners ( GDX ): -1.45%

iShares Russell 2000 Index ( IWM ):+0.22%

PowerShares QQQ Trust, Series 1 ( QQQ ): +0.773%

Pre-Market Movers

EWH +1.8%

DUST +1.7%

EWZ +0.8%

SRTY -1.6%

TVIX -1.5%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV are mixed pre-market. Likewise, actively traded PowerShares QQQ ( QQQ ) was flat and touched a 13-year high on Tuesday.

U.S. stock futures are pointing to a mixed open Wednesday, with most global markets trading lower. Tension over developments in Iraq have unsettled European shares amid signs the militants there may be strengthening their positions. Medical shares are among the most active pre-market amid deals and new product news. Medical Action Industries (MDCI) shares almost doubled after the custom procedure trays and minor procedure kits producer said it agreed to be acquired by health-care logistics company Owens & Minor (OMI) for $13.80 per share in cash,

Power Play: Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were unchanged and ended the session mixed on Tuesday. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was leaning into the green.

In corporate news, Insys Therapeutics (INSY), a pharmaceutical company that develops and seeks to commercialize pharmaceutical products that target the unmet needs of cancer patients, said Wednesday that the U.S. Food and Drug Administration (FDA) has granted orphan drug designation to its pharmaceutical cannabidiol (CBD) for the treatment of Lennox-Gastaut Syndrome, a rare pediatric-onset epilepsy.

The company said further that it expects to file an Investigational New Drug Application (IND) for CBD in the second half of 2014.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) and Direxion Daily Financial Bull 3X shares (FAS) ended lower and fell after hours. Its bearish counterpart, FAZ, is down 0.45% pre-bell. It touched a record low Thursday.

Among sector news, Rexford Industrial Realty (REXR), real estate investment trust, said it bought the Dupont Business Center, a two-building industrial complex totaling 110,890 square feet on 5.7 acres for $10.2 million, or $91 per square foot. "Our acquisition of this property represents another example of our ability to source and close well-located highly functional industrial properties in vibrant infill submarkets such as the western Inland Empire," said Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. "The property is 100% occupied by five tenants."

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) closed lower, but were near record or multi-year highs. They are inactive so far pre-bell. SPDR S&P International Technology Sector ETF (IPK) was flat early and bucked the trend to end higher Tuesday.

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

In corporate news, Google (GOOG) shares nudged up in Wednesday's pre-market trade after the tech giant readied for its developer conference on Wednesday, when it plans to unveil a new television set-top box product, the Wall Street Journal reports. The device will carry another company's brand but will be powered by Google Android TV software that can play movies and games and display other content.

Energy

Dow Jones U.S. Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was up 0.4% pre-bell. Both are near record highs.

Among stocks, Methanex (MEOH, MX.TO) on Wednesday announced that operations at its Egypt plant have been idled temporarily after its gas supplier confirmed it will likely not be able to resume gas deliveries before the end of July 2014. Operations at the plant were supposed to resume shortly after June 12, but Methanex decided to extend the suspension due to ongoing gas constraints related primarily to increased seasonal electricity demand.

Commodities

Crude was up 0.4%; United States Oil Fund (USO) was up 0.46%. Natural gas was up 0.55% and United States Natural Gas Fund (UNG) was up 0.7%.

Gold was down 0.5% and silver fell 0.9%. Among rare metal funds, SPDR Gold Trust (GLD) fell 0.4% and iShares Silver Trust (SLV) was down 0.15%.

Consumer

Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) are flat pre-market. They ended the session lower Tuesday.

Retail ETFs SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH), are also unchanged.

Among stocks, Sequential Brands (SQBG) Wednesday said it has signed an agreement to buy Galaxy Brand Holdings for $100 million in cash, 13.75 million shares of common stock, and certain performance based warrants. Upon closing of the transaction, the owner of a portfolio of consumer brands is expecting forward 12-month royalty revenues of $56 million - $60 million and $36 million - $40 million of Adjusted EBITDA from the total brand portfolio of 12 brands.



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 , EEM , GDX , IWM , QQQ

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As of 11/26/2014, 04:15 PM

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