ETF Preview: ETFs, Futures Lower as Empire State Index Data Misses Forecasts; Commodities Sink on Downbeat China Data
Active broad-market exchange-traded funds in Friday's regular session:
SPDR S&P 500 ( SPY ): -0.54% pre-market.
iShares S&P 500 ( IVV ): -0.56%
PowerShares QQQ ( QQQ ): -0.49%
iShares Russell 2000 ( IWM ): -0.7%
iShares Russell 1000 Growth ( IWF ): flat
iShares MSCI Emerging Markets Index (EEM): -0.9%
United States Oil Fund (USO): -1.8%
SPDR Gold Shares (GLD): -5%
Select Financial Sector SPDRS (XLF): -0.2% in pre-market.
Pre-Market Most Active:
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are sharply lower. Actively traded PowerShares QQQ ( QQQ ) is down 0.4%.
U.S. stock futures are tracking commodities and commodity-related currencies lower, following the report that manufacturing activity in the New York region came in at a reading of 3.1, down from the prior month's reading of 9.2 and missing forecasts, according to a survey by Briefing.com. The news added more pressure on market sentiment, which was already taking a beating after China reported Q1 GDP growth of 7.7%, below expectations for an 8% gain forecast. March industrial production also missed a 10% gain forecast, increasing only 8.9% from the year-earlier period.
Winners and Losers
Select Financial Sector SPDRs (XLF) is down 0.22%. Direxion Daily Financial Bull 3X shares (FAS) is down 0.4%. Its bearish counterpart, FAZ, is up 0.70%.
Among financial stocks, Citigroup (C) is up 2.08% after it reported Q1 2013 EPS of $1.23; $1.29 excluding CVA/DVA, on revenues of $20.5 billion; excluding CVA/DVA, revenues came in at $20.8 billion. Analysts were calling for $1.17 earnings per share on $20.2 billion in revenue.
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 lower.
Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) look to open in the red.
SPDR S&P International Technology Sector ETF (IPK) is headed for a flat to lower open.
In sector news, DISH Network Corporation (DISH) has submitted a merger proposal to Sprint Nextel Corporation (S) for a total consideration of $25.5 billion, consisting of $17.3 billion in cash and $8.2 billion in stock. Sprint shareholders would receive $7 per share. This consists of $4.76 per share in cash and 0.05953 DISH shares per Sprint share. DISH shares are down 1.67% while S shares are up 15.11%.
Dow Jones U.S. Energy Fund (IYE) looks to open in the negative; Energy Select Sector SPDR (XLE) is off 1.02%.
In sector news, Basic Energy Services, Inc. (BAS) reported selected operating data for the month of March 2013. Well servicing rig count remained unchanged at 425. Well servicing rig hours for the month were 72,200 producing a rig utilization rate of 74%, compared to 71% and 78% in February 2013 and March 2012, respectively.
Healthcare ETFs Health Care SPDR (XLV), Vanguard Health Care ETF (VHT), and iShares Dow Jones US Healthcare (IYH) are pointing to a negative start. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is also pointing lower.
In corporate news, Life Technologies (LIFE) is up 8%, pushing past its 52-week high of $68.23, and is now at $73.45, after announcing that it is being acquired by Thermo Fisher (TMO) for $76.00 in cash, representing a 11.8% premium to LIFE's Friday closing price, or for a total consideration of $11.48 billion. TMO shares are up 3.51%.
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 lower start.
In sector news, Chipotle Mexican Grill (CMG) is up 1.82% after shares were upgraded to Outperform from Neutral at Wedbush. UBS also upgraded shares to Buy from Neutral.
Power Play -
Commodities continue to sink as market sentiment slumps following disappointing data from China. Crude for May delivery is down 1.84% at $89.61, but earlier slipped below $89. July natural gas, however, is up 0.21% at $4.32, inching closer to its 52-week high of $4.37. Among ETFs, United States Oil Fund (USO) is down 1.11%. United States Natural Gas Fund (UNG) is also lower, down 1%.
Gold for June delivery is now down 6.15% at $1409.10; silver is down 9.44% at $23.85. Copper for June delivery is down 3.61% at $3.23, just above its 52-week low of $3.19. Among rare metal funds, SPDR Gold Trust (GLD) is down 5.31% at $136.30, falling below its 52-week low of $135.77. iShares Silver Trust (SLV) is down 7.67% at $23.32, also below its 52-week low of $25.17.
In stocks news, Mechel OAO (MTL) is down 1.16% after it reported that for Q4 FY12, revenues were $2.52 million, down 7% from $2.71 million in the same quarter last year. This was below the $2.58 million estimate of analysts polled by Capital IQ. Adjusted net loss was $160,860, compared with $134,126 in the prior-year period.