ETF Preview: ETFs, Futures Extend Gains on Upbeat ADP Jobs Data
Active broad market exchange-traded funds in Tuesday's regular session:
SPDR S&P 500 ( SPY ): +0.90%
iShares S&P 500 ( IVV ): +0.90%
PowerShares QQQ ( QQQ ): +1.48%
iShares Russell 2000 ( IWM ): +1.16%
iShares Russell 1000 Growth ( IWF ): +1.04%
iShares MSCI Emerging Markets Index (EEM): +1.17%
United States Oil Fund (USO): +0.90%
SPDR Gold Shares (GLD): +0.05%
Select Financial Sector SPDRS (XLF): +0.84%
Pre-Market Most Active:
SPY, +0.31%, with a new 52-week high of $154.77
XLF, +0.61%, with a new 52-week high of $18.05
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are firmer. Actively traded PowerShares QQQ ( QQQ ) is up 0.19%.
U.S. stock futures are extending their gains and look to open higher Wednesday following the report that private sector employment in the U.S. added 198,000 private jobs, according to ADP data. This showed a contraction from January's reading, but still topped the forecasts of 175,000 added jobs, according to a poll by MarketWatch. Still ahead, January factory orders will be reported at 10 am ET, petroleum inventories at 10:30 am ET, and the Federal Reserve's Beige Book at 2 pm ET.
Winners and Losers
Select Financial Sector SPDRs (XLF) is up 0.6%, pushing past its 52-week high of $17.94, which it touched in Tuesday's regular session. Likewise, Direxion Daily Financial Bull 3X shares (FAS) is up around 1.5% to a new 52-week high of $158.40. Its bearish counterpart, FAZ, is down 1.52%, with a new 52-week low of $11.03.
Among financial stocks, Royal Bank of Scotland Group (RBS) is up 0.6% after the UK's Daily Telegraph reported that Bank of England Governor Sir Mervyn King, who today appears before the Banking Standards Commission, has suggested the bank could be split into a "good" and a "bad" bank. He reportedly added that the way the part-nationalization of RBS has been handled has been "a nonsense."
Energy ETFs Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) are heading for a firmer start, with the latter edging up 0.08%.
In sector news, Western Refining (WNR) shares are up around 1.7% and nearing its 52-week high of $39.42. Late Tuesday its board of directors authorized WNR management to explore the formation of a traditional master limited partnership and begin preparing a registration statement for an initial public offering. If WNR determines to further pursue an initial public offering of an MLP, the issuer would be a wholly owned subsidiary.
April crude edged lower, down 0.4%; May natural gas also slipped some 0.6%. United States Oil Fund (USO) is down 0.37%. United States Natural Gas Fund (UNG) is down 0.2%.
April gold eased 0.15%, while, silver for May delivery inched up 0.11%. Among rare metal funds, SPDR Gold Trust (GLD) is up 0.25%; iShares Silver Trust (SLV) is up around 0.5%.
Healthcare ETFs Health Care SPDR (XLV), Vanguard Health Care ETF (VHT), and iShares Dow Jones US Healthcare (IYH) are pointing to a positive start. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is also pointing higher.
In corporate news, Aegerion Pharmaceuticals (AEGR) inched up 0.03% after it reported a Q4 loss of $0.86 per share, versus the Capital IQ consensus of $0.64 loss per share. In the same period last year, the company posted a loss of $0.66 per share. The company did not report revenues for the quarter. AEGR expects FY13 net revenues of $15 mln - $25 mln, versus the Street view of $24.23 mln. Frr the second half of FY14, AEGR sees global net revenue at a $100 million annualized run rate.
Consumer ETFs Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) are pointing to a higher start.
Retail ETFs SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR), and Market Vectors Retail ETF (RTH) are leaning higher.
In sector news, Staples (SPLS) slipped more than 5% after it posted Q4 earnings of $0.46 per share, versus the Capital IQ consensus of $0.45. Revenues were $6.57 bln, versus the analyst estimate of $6.7 bln. Comparable store sales for the quarter, excluding sales in Staples.com, slipped 5% year-over-year. The company expects FY13 EPS of $1.30 - $1.35, versus the consensus of $1.38, if comparable. Revenues are projected to increase in the low single-digits compared to 2012 sales on a 52 week basis.
Power Play -
Tech ETFs 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 leaning higher.
Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) look to open in the green.
SPDR S&P International Technology Sector ETF (IPK) is headed for a flat to higher open.
In sector news, Facebook (FB) is higher in the pre-market session, up around 1.6%, after TechCrunch reported that the company will be showcasing new features on the social media platform at the company's media event March 7. These features will cover filters for news feeds, including feeds for Facebook and Instagram photos, a music feed covering concerts and new albums, and image-based ads, the report detailed. TechCrunch cited sources within and close to the company.