ETF Preview: ETFs, Futures Pare Down Losses Following July Non-Farm Payrolls, Consumer Spending Data
Active broad-market exchange-traded funds at the close of Thursday's regular session:
SPDR S&P 500 ( SPY ): -1.97%
iShares S&P 500 ( IVV ): -2.02%
PowerShares QQQ ( QQQ ): -2.02%
iShares Russell 2000 ( IWM ): -2.28%
iShares Russell 1000 Growth ( IWF ): -2.06%
iShares MSCI Emerging Markets Index (EEM): -1.75%
United States Oil Fund (USO): -1.64%
SPDR Gold Shares (GLD): -1.15%
Select Financial Sector SPDRS (XLF): -2.05%
Friday's Pre-Market Movers
Broad Market Indicators
U.S. stock futures were weaker ahead of the opening of Friday's regular session but trimmed losses following the report that U.S. non-farm payrolls grew to 209,000 in July, down from an upwardly revised 298,000 in June. The unemployment rate, meanwhile, rose slightly to 6.2%.
In other economic data, consumer spending rose 0.4% and personal income rose 0.4% in June, while spending in May was revised upward to show a 0.3% increase.
Power Play: Technology
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) were inactive. SPDR S&P International Technology Sector ETF (IPK) was also flat.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were unchanged after seeing losses in the previous session.
Bally Technologies (BYI) has agreed to be bought by Scientific Games (SGMS) for $83.30 per share in cash. The deal is valued at $5.1 billion, including net debt of approximately $1.8 billion. The deal is expected to be completed in early 2015. BYI shares climbed 30.46% while SGMS shares were up 25.41%.
Winners and Losers
Select Financial Sector SPDRs (XLF) was down 0.04%; Direxion Daily Financial Bull 3X shares (FAS) was down 1.07%while its bearish counterpart, Direxion Daily Financial Bear 3X shares (FAZ) was up 0.77%.
Royal Bank Scotland (RBS) reported improved earnings for its Q2 and first half but warned "significant conduct and litigation issues" are likely to hurt its profits going forward. Its Q2 profit attributable to ordinary and B shareholders climbed to 230 million pounds from GBP142 million a year earlier, putting its first-half profit attributable to shareholders at GBP1.43 billion, up from the prior-year period's GBP535 million. Per-share figures weren't given.
Its Q2 operating profit was GBP1.32 billion, up sharply from GBP174 million a year earlier. Adjusted operating profit rose to GBP1.95 billion, compared with GBP893 million in Q2 2013. The operating profit for the first half was GBP2.60 billion, well above the prior-year period's GBP708 million. Q2 total income--a revenue measure--was GBP4.93 billion, down from GBP5.45 billion a year earlier, but matching the analyst consensus according to Capital IQ.
Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) were both flat.
Chevron (CVX) was up 0.60% after reporting Q2 earnings of $2.98 per share, topping the CIQ estimate consensus of $2.67; revenue was $57.94 billion, up 0.5% from $55 billion in the same period last year.
Chairman and CEO John Watson said, "We continue to make significant progress on our major capital projects which are expected to underpin a 20 percent increase in production by 2017 and enable significant growth in our cash flows. In the deepwater Gulf of Mexico, our production is expected to benefit in the near-term from start-up of the Jack/St. Malo Project later this year and the Big Foot Project in 2015. In Australia, our Gorgon and Wheatstone LNG projects continue to reach important interim milestones. Gorgon remains on track for expected start-up in mid-2015. We are also advancing the development of our liquids-rich, unconventional properties in the United States, Canada and Argentina."
Crude was down 0.69%; natural gas was down 0.94%. United States Oil Fund (USO) was down 0.41%; United States Natural Gas Fund (UNG) were down 0.66%.
Gold was up 0.30%, and silver was up 0.04%. Among rare metal funds, SPDR Gold Trust (GLD) was up 0.21% and iShares Silver Trust (SLV) was down 0.10%.
Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were flat.
Burger King Worldwide (BKW) was up 0.45% after it reported Q2 net income of $75.1 million or $0.21 per share, compared with the prior-year period's $62.9 million or $0.18 per share. Adjusted net income was $89 million or $0.25 per share, versus $74.4 million or $0.21 per share in the comparable quarter the previous year. Revenue was $261.2 million, down from $278.3 million in the same quarter last year.
Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were unchanged. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was down 0.18%.
Biota Pharmaceuticals (BOTA) plunged 37% in pre-market trade after saying a phase 2 clinical trial on its laninamivir octanoate influenza drug didn't achieve a statistically significant reduction in the median time to alleviation of influenza symptoms.
"We expect to complete a full analysis of additional clinical, safety, and pharmacokinetic data forthcoming from this trial over the next several months; however, at this time we do not have any plans to independently advance the development of LANI for the treatment of influenza and intend to evaluate next steps for the LANI program outside of Japan with our partner, Daiichi Sankyo," CEO Russel Plumb said in a statement.