ETF Preview: Bearish Financial ETFs Getting Pre-Market Attention; Major-Market Issues Lower
iShares S&P 500 (IVV): -0.2%
United States Oil Fund (USO): -0.7%
iShares Russell 2000 (IWM): -0.4%
iShares MSCI Emerging Markets Index ( EEM ): -0.8%
United States Natural Gas Fund (UNG): -0.5%
Pre-Market ETF Most Actives:
Winners and Losers
Broad-market ETFs are trading lower as SPY, QQQ and IVV are all trending to the downside along with major-market index futures. Investor sentiment is decidedly downbeat after China said it would raise interest rates by a quarter-point and investors geared up for employment data due later in the week.
Active financial issues are mixed in pre-market trading with C down 0.4%, GS up 0.01%, WFC up 0.1% and JPM down 0.8%. Likewise, bullish financial ETFs are trading to the downside with the Direxion Daily Financial Bull ( FAS ) down 1.7% and the Financial Select Sector SPDR (XLF) trading down 0.7%.
Investors were eying the decision by the People's Bank of China to raise interest rates by 25 basis points, which is the third such change this year for China. In addition, Moody's cut Portugal's debt rating to junk status, a move that is pressuring European and U.S. banks.
Active tech shares are lower. Among the big-name downside movers are Apple ( AAPL ), down 0.4%; Intel (INTC), down 0.7%; Microsoft (MSFT), down 0.4% Google (GOOG), down 0.1%.
Still the Technology Select Sector SPDR (XLK), is show some positive momentum in the early going, trading up 0.5%. Software HOLDRS ( SWH ), iShares S&P GSTI Software Index Fund ( IGV ), Merrill Lynch Internet Architecture HOLDRs (IAH), Morgan Stanley Technology (MTK) and First Trust Nasdaq 100 Technology (QTEC) are flat in pre-market trading.
Consumer shares are mixed this morning with Walgreen Co. (WAG) tipping up 0.1% and Walt Disney Co. (DIS) moving up 0.1%. Wal-Mart Stores (WMT) is down 0.2% ahead of the open. Major consumer ETF SPDR S&P Retail (XRT) is down 0.3%.
Walgreen reported June sales of $6.04 billion this morning, an increase of 6.8 percent from $5.65 billion for the same month in 2010. Sales in comparable stores (those open at least a year) increased 4.8 percent. The effect of calendar day shifts positively impacted total comparable sales by 0.2 percentage point.
Commodities and Mining -
After posting strong gains yesterday, commodity metal ETFs are slipping in the early going, with SPDR Gold Shares (GLD) is down 0.1%. Market Vectors Gold Miners (GDX) is down 0.2%. iShares Silver Trust (SLV) is down 0.7%. ProShares UltraShort Silver (ZSL) is up 1.1% and remains an active-volume mover.
Power Play -
Look for positive momentum in bearish financial ETFs today following China's interest rate move. Bearish counterpart Direxion Daily Financial (FAZ) is up 1.6% in pre-market trading. Other bearish ETF issues that could see attention are ProShares UltraShort Financials (SKF) and Short Financials ProShares ETF (SEF).
Bank of America (BAC) is seeing solid liquidity moving into the shares in pre-market action, but shares of the bank continue to fight gravity, now trading down 1.6%.