ETF Preview: Broad Market ETFs Fall Amid Ukraine Tensions; Russia Funds Plunge


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Active broad-market exchange-traded funds at Friday's regular session:

SPDR S&P 500 ( SPY ): +0.63%, with an all-time high

iShares MSCI Emerging Markets Index ( EEM ): -0.52%

Select Sector SPDR Fund - Financial ( XLF ): +1.00%

iShares MSCI Japan ( EWJ ): +0.65%

PowerShares QQQ Trust, Series 1 ( QQQ ): +0.44%, near its 13-year high

Pre-Market Movers

RUSL -26.3%

RSX -9.9%

XIV -8.6%

TVIX +16%

VIZY +8.8%

Broad Market Indicators

Most broad market exchange-traded funds were lower in pre-market trading Monday. Actively traded PowerShares QQQ ( QQQ ) was down 0.9%, after setting a 13-year high of $90.96 on Friday. Funds focused on Russia were the biggest losers amid concern Moscow will face punishing sanctions if it intervenes in the crisis in neighboring Ukraine.

U.S. stock futures are pointing to a sharply lower open amid escalating tension in the Ukraine, which sent stocks in Europe sharply lower and pushed up the price of gold as investors rushed to safe haven assets. The main S&P 500 Index will be coming off a new record set on Friday, as data showing consumer sentiment rose in February and a strong reading on the Chicago PMI outweighed a negative revision to Q4 economic growth.

Power Play: Commodities

Gold ETFs were among the best performers on Monday, rising along with the price of the precious metal, as investors moved into safe haven assets amid rising tensions in Ukraine. Gold gained 1.8% and silver was up 1.1%. Among rare metal funds, SPDR Gold Trust (GLD) gained 1.7%; iShares Silver Trust (SLV) was up 1.4%.

Crude was up 2%; United States Oil Fund (USO) gained 2.2%. Natural gas was up 1.9%; United States Natural Gas Fund (UNG) rose 2.2%.

Winners and Losers


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 flat after closing mixed on Friday. SPDR S&P International Technology Sector ETF (IPK) was unchanged after rising to a record Friday.

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

In stocks news, SolarCity (SCTY) was lower nearly 3% in recent pre-market trade after saying its earnings in 2012 and 2013 will be restated due to an error made in the overhead expenses in Q112.

The provider of solar energy said the error was found in the formula for allocating overhead expenses between operating lease assets and the cost of solar energy system sales.


Select Financial Sector SPDRs ( XLF ) was down 2.8% pre-market Monday. Direxion Daily Financial Bull 3X shares (FAS) was up 2.73%. Its bearish counterpart, FAZ, was up 2.7%.

Among financial stocks, Mack Cali Realty (CLI) reported mixed financial results for Q4, and said it is lowering its guidance for funds for operations (FFO) per share in fiscal 2014. The self-administered and self-managed real estate investment trust reported Q4 FFO of $0.52 per diluted share, compared with the prior-year period's $0.66 per share.


Dow Jones U.S. Energy Fund (IYE) dropped 0.9% and Energy Select Sector SPDR (XLE) was flat.

In corporate news, QR Energy (QRE) reported Q4 revenue that was short of the Street consensus. QR Energy reported revenue was $119.3 million for Q4, up from $126.0 million a quarter prior. Earnings were $0.25 per share, up from a year ago loss of $0.57 per share. The energy company expects an average of 18,900 to 19,600 barrels per day for Q1 and an average of 19,700 to 20,700 per day for the full year 2014.


Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK) and Vanguard Consumer Staples ETF (VDC) were all unchanged after closing higher on Friday.

In company news, Nu Skin reported Q4 revenue of $1.056 billion, an 82% improvement over the prior-year period. Revenue was negatively impacted 4% by foreign currency fluctuations. Earnings per share for Q4 were $2.02, a 108% year-over-year improvement. The Street expected Q4 revenue of $1.069 billion and earnings of $1.98 per share, according to Capital IQ estimates.


Health Care SPDR (XLV) fell 0.5%, Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) are flat. All three funds set new records on Friday. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) fell 1.6%.

In corporate news, Array BioPharma (ARRY) was up more than 9% in pre-market trade after reporting positive study results for its asthma treatment. The company said, ARRY-502, an oral CRTh2 antagonist, was studied in a 184-patient placebo-controlled, randomized, double-blind Phase 2 trial in mild to moderate persistent allergic asthma, a population representing more than 12 million patients in the U.S.

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: SPY , EEM , XLF , EWJ , QQQ

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