Active broad-market exchange-traded funds ahead of Tuesday's regular session:
VelocityShares 3x Inverse Natural Gas ETN ( DGAZ ): +5.6%
SPDR S&P 500 ( SPY ): -1.3%
iShares MSCI Emerging Index Fund ( EEM ): -1.5%
Invesco QQQ Trust, Series 1 ( QQQ ): -2.1%
SPDR Select Sector Fund - Financial ( XLF ): -1.2%
Broad Market Indicators
Broad-market exchange-traded funds, including IWM and IVV were lower. Actively traded PowerShares QQQ ( QQQ ) was down 2.1%.
US stock futures continued to slump in Tuesday's pre-market activity, with the tech sector once again leading losers.
Disappointing earnings from retailers such as Target (TGT), Kohl's (KSS) and Lowe's (LOW) were also weighing on market sentiment.
In economic data news, housing starts rose to a seasonally adjusted annual rate at 1.228 million in October, up from a revised 1.210 million in September. The forecasts were for 1.230 million. Meanwhile, permits decreased to a seasonally adjusted 1.263 million in October from a revised 1.270 million in September. Expectations were for 1.260 million.
Power Play: Technology
Technology Select Sector SPDR ETF (XLK) was down 1.7% and other tech funds iShares Dow Jones US Technology ETF (IYW) and iShares S&P North American Technology ETF (IGM) were in the lower in pre-market trade.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was flat while Semiconductor Sector Index Fund (SOXX) was down 2%.
Pure Storage (PSTG) shares rallied more than 4% after the close Monday as the company reported Q3 non-GAAP net income came in at $0.13 a share, better than the year earlier $0.04 and topping the consensus on Capital IQ for $0.09. Revenue climbed 34% to $372.8 million, beating expectations for $367.4 million. For Q4, the company sees Q4 fiscal revenue between $438 million to $446 million and FY revenue between $1.376 billion to $1.384 billion. The Street's view on the quarter is $440.7 million and $1.37 billion on the year. Also Monday, the company announced Pure Storage Cloud Data Services, a suite of cloud offerings that will run on Amazon's (AMZN) Web Services.
Winners and Losers
The Select Financial Sector SPDRs ( XLF ) was down 1% in pre-market trade. Direxion Daily Financial Bull 3X shares (FAS) was down 3% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was up 3.3%.
X Financial (XYF) was up more than 2% on the back of significantly improved results for Q3 while providing guidance for Q4 and 2018. Core diluted earnings per ADS was RMB1.64 ($0.24) on revenues of RMB829.5 million. For the same period last year, core diluted earnings per ADS were RMB0.76 on revenues of RMB452.8 million. The China-based peer-to-peer lending platform operator expects total loan facilitation to be in the range of RMB8 billion to RMB8.50 billion for Q4, and RMB35.40 billion to RMB35.90 billion for 2018.
Dow Jones US Energy Fund (IYE) was quiet and Energy Select Sector SPDR (XLE) was down 1.5%.
NewJersey Resources (NJR) reported a fiscal Q4 net financial loss of $0.33 per share, compared with a net loss of $0.14 per share a year ago and narrower than the $0.44 loss per share Street estimate provided by Capital IQ. Revenue for the quarter ended Sept. 30 was $647.3 million, up from $536.5 million reported for the same period last year and higher than the $549.6 million Street estimate. For fiscal 2019, the company expects net financial earnings of $1.95 to $2.05 per share.
Crude was down 2.3%. United States Oil Fund (USO) was down 1.9%. Natural gas was down 1.4% while United States Natural Gas Fund (UNG) was up 0.4%.
Gold was up 0.3%. SPDR Gold Trust (GLD) was up 0.5%. Silver was up 0.4%, while iShares Silver Trust (SLV) was up 0.4%.
Consumer Staples Select Sector SPDR (XLP) was down 0.5% and Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones U.S. Consumer Goods (IYK) were inactive.
Consumer Discretionary Select Sector SPDR (XLY) was down 1.7% and retail funds SPDR S&P Retail (XRT) and Market Vectors Retail ETF (RTH) were also flat in pre-market trade.
Kohl's (KSS) fell 10% after it reported Q3 earnings of $0.98 per share, up from $0.70 in the comparable period a year ago and exceeding the estimate of $0.96 from analysts polled by CapIQ. For the quarter ended Nov. 3, total revenue of $4.63 billion was up from $4.57 billion in the comparable period a year ago and topped the Street projection of $4.37 billion. Comparable sales were up 2.5% for the quarter. Kohl's increased the low end of full-year adjusted EPS guidance to a range of $5.35 to $5.55 from a prior range of $5.15 to $5.55. The new guidance straddles the Street estimate of $5.49.
Health Care SPDR (XLV) and other health care funds including Vanguard Health Care ETF (VHT) and iShares Dow Jones U.S. Healthcare (IYH) were quiet. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was also inactive.
Boston Scientific (BSX) fell more than 7% after it said that it has reached an agreement on terms of a recommended offer to acquire BTG plc, a company specializing in products used in minimally-invasive procedures targeting cancer and vascular diseases as well as the development of acute care pharmaceuticals. Under the deal, holders of BTG common shares would receive 840 pence per share, valuing BTG at approximately at GBP3.3 billion or $4.2 billion. The acquisition would be funded with a combination of cash on hand and proceeds from debt financing, the company said. BTG's portfolio includes its Interventional Medicine business which encompasses several peripheral interventional product lines, a vascular segment, and a pharmaceutical unit that manufactures acute care antidotes. The company said that it expects the transaction to be two-to-three cents accretive to its adjusted earnings per share in 2019, and increasingly accretive thereafter. It also expects the transaction to close in the first half of next year.