ETF Preview: Broad Market ETFs Slipping Pre-Market As Investors Weigh Earnings Reports
Active broad-market exchange-traded funds at Friday's regular session:
iShares MSCI Emerging Markets Index ( EEM ): +1.3%.
SPDR S&P 500 ( SPY ): -0.1%, from near its 52-week high
iShares FTSE/Xinhua China 25 Index ( FXI ): +1.3%
Market Vectors Gold Miners ETF ( GDX ): +3.4%
Utilities SPDR ( XLU ): +1.4%
PowerShares QQQ Trust, Series 1 (QQQ): -0.3%, from near its 52-week high
Broad Market Indicators
Broad market exchange-traded funds were mostly lower pre-market. Actively traded PowerShares QQQ (QQQ) has slipped 0.08%.
U.S. stock futures are slightly weaker this morning as the Q4 earnings season gets under way in earnest. Investors are waiting to see if current high stock valuations are supported by earnings growth. According to Thomson Reuters, Q4 results are expected to grow 7.3% over the year-ago period. However, the 9.8 ratio of negative guidance to positive outlooks is currently the largest on record.
Power Play: Healthcare
Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) are unchanged. All closed higher on Friday, setting new records. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is gaining 0.9% pre-market, setting a new record high.
In corporate news, Intercept Pharmaceutical (ICPT) is open to working with a larger drugmaker to bring its drug to treat nonalcoholic steatohepatitis, or NASH, to patients, Bloomberg reported citing an interview with CEO Mark Pruzanski. ICPT was off 30% in pre-market trade.
Winners and Losers
Select Financial Sector SPDRs (XLF) is flat. Direxion Daily Financial Bull 3X shares (FAS) was down 0.12%. Its bearish counterpart, FAZ, was up 0.8%.
Among financial stocks, Legg Mason (LM) expects Q3 net income in the range of $0.65 to $0.68 per share, or $79 to $83 million, which is says is above the current analysts' consensus estimates. The Street view for GAAP EPS is $0.61 per share on Capital IQ, while normalized non-GAAP EPS is seen at $0.84 per share.
Technology Select Sector SPDR ETF (XLK), iShares Dow Jones US Technology ETF (IYW), iShares S&P North American Technology ETF (IGM), iShares S&P North American Technology-Software Index (IGV) and SPDR S&P International Technology Sector ETF (IPK) are flat, but near the top of their 52-week range.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) are also unchanged so far this morning.
In stocks news, Licensing company Acacia Research Corporation (ACTG) said that its O.S. Security LLC subsidiary has entered into a settlement and patent license agreement with Videx, Inc., provider of electronic lock cylinders and tracking systems.
The agreement resolves litigation that was pending in the United States District Court for the Northern District of Illinois.
Dow Jones U.S. Energy Fund (IYE) is flat, and Energy Select Sector SPDR (XLE) is also unchanged.
In corporate news, Chevron Corporation's (CVX) European upstream business Chevron North Sea Limited has reached a final investment decision and received approval from the U.K. Government to proceed with the development of the Alder Field in the Central North Sea.
Crude is down 0.75%; United States Oil Fund (USO) is down 0.9%. Natural gas was up 2.59% and United States Natural Gas Fund (UNG) is up 2.57%.
Gold is leaning slightly lower and silver was down 0.58%. Among rare metal funds, SPDR Gold Trust (GLD) is tipping into the red; iShares Silver Trust (SLV) is down 0.1%.
Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples ETF (VDC), and iShares Dow Jones US Consumer Goods (IYK) are flat after closing firmer on Friday.
Retail ETFs including SPDR S&P Retail (XRT); PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) are flat after ending the session mixed on Friday.
Among stocks, SodaStream (SODA) reports preliminary 2013 revenue of about $562 million, below the analyst consensus of $564 million on Capital IQ. Adjusted net income is expected to be about $52.5 million. Net income is seen at about $41.5 million. The shares are down 12% pre-bell.