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ETF Preview: ETFs, Futures Drift Lower as New Trade Tensions Flare Up; Factory Orders Still Ahead


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Active broad-market exchange-traded funds ahead of Thursday's regular session:

iShares MSCI Emerging Index Fund ( EEM ): -2.1%

SPDR Select Sector Fund - Financial ( XLF ): -0.5%

SPDR S&P 500 ( SPY ): -0.6%

VanEck Vectors Gold Miners ETF ( GDX ): -0.4%

Invesco QQQ Trust, Series 1 ( QQQ ): -0.8%

Broad Market Indicators

Broad-market exchange-traded funds, including IWM and IVV were lower. Actively traded PowerShares QQQ ( QQQ ) was down 0.8%.

US stock futures were pointing to a negative open amid fresh concerns on the trade dispute between the US and China following signals from the Trump administration that it is considering to more than double its proposed tariffs on Chinese imports.

In economic data news, new unemployment claims for the July 28 week rose 1,000 to 218,000, in line with forecasts from Econoday. Despite the increase, jobless claims remain near almost 50-year lows. Continuing claims declined by 23,000 to 1.72 million.

Looking ahead, factory orders will be out 10 am ET and are seen rising 0.9% for June versus the prior gain of 0.4%.

Power Play: Consumer

Consumer Staples Select Sector SPDR (XLP) and other funds Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were flat.

Consumer Discretionary Select Sector SPDR (XLY) and retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were inactive in pre-market trade.

Gildan Activewear (GIL) rose more than 13% after it said Thursday its Q2 adjusted earnings were $0.52 per diluted share, up 6% from $0.49 a year ago. The Capital IQ average of estimates from analysts polled was for $0.49. Net sales of $764.2 million was up 6.8% from $715.4 million a year ago. That was above the Street's $728.7 million average expectation. Gildan is now projecting full-year 2018 adjusted earnings of between $1.85 to $1.90 per diluted share, compared with previous guidance of $1.80 to $1.90, but still in line with estimates for $1.86. Sales are seen growing in the mid-single-digit range, the upper end of the previous range of low- to mid-single-digit growth.

Its board declared a cash dividend of $0.112 per share, payable on Sept. 10 to shareholders of record on Aug. 16. It also said it received Toronto Stock Exchange approval to raise its normal course issuer bid to 21,575,761 common shares, representing approximately 10% of the public float as at Feb. 15. That is up from 10,960,391 common shares, or approximately 5%.

Winners and Losers

Financial

The Select Financial Sector SPDRs ( XLF ) was down 0.5%. Direxion Daily Financial Bull 3X shares (FAS) was down 1.5% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) were inactive in the pre-market session.

Prudential Financial (PRU) fell 1.5% after it reported late Wednesday Q2 adjusted earnings of $3.01 per share, up from $2.09 per share a year ago but shy of the analyst consensus of $3.07 per share on Capital IQ.

Technology

Technology Select Sector SPDR ETF (XLK) was up 0.03% and other tech funds 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.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were both flat.

Zynga (ZNGA) rose more than 3% after the electronic games company reported late Wednesday a Q2 net loss of $911,000, or $0.00 per share, down from $0.01 in net income during the year-ago period and missing the Capital IQ consensus expecting net income of $0.03 per share. Total revenue rose 4% year over year to $217 million from $209.2 million during the year-ago period and topping the $212.6 million Street view. Mobile revenue grew 19% over the April-to-June reporting period in 2017 to $164.7 million while advertising revenue reached $52.4 million compared with $45.5 million last year. Looking forward, the company is projecting $248 million in total bookings for the three months ending Sept. 30, which includes $218 million in revenue and about $30 million in deferred revenue. Analysts, on average, are looking for around $250.51 million in Q3 bookings.

Energy

Dow Jones US Energy Fund (IYE) was flat and Energy Select Sector SPDR (XLE) was down 0.8% in pre-market trade.

Duke Energy (DUK) fell more than 1% after it reported Q2 adjusted diluted earnings per share of $0.93, down from $1.01 for the year-ago quarter, and below the Capital IQ consensus forecast of $1.01. Revenue for the quarter was $5.64 billion, up from $5.56 billion during the same period last year, and ahead of the analyst forecast of $5.61 billion. For FY18, the company continues to expect adjusted EPS of $4.55 to $4.85, straddling the $4.75 per share consensus.

Commodities

Crude was down 0.6%. United States Oil Fund (USO) was down 1.2%. Natural gas was down 0.2% while United States Natural Gas Fund (UNG) was down 0.3%.

Gold was down 0.2%. SPDR Gold Trust (GLD) was down 0.1%. Silver was =down 0.1%, while iShares Silver Trust (SLV) was down 0.5%.

Health Care

Health Care SPDR (XLV) and other health care funds Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were inactive. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was down quiet in pre-market trading .

ADRs of Teva Pharmaceutical Industries (TEVA) slumped nearly 8% after the company reported mixed Q2 results and raised its FY18 adjusted EPS guidance. Q2 EPS was $0.78 compared with $1.02 in the prior-year quarter. That topped the Street consensus of $0.64. The drug maker's total revenue came in at $4.70 billion, down from $5.72 billion a year ago and below the analyst consensus of $4.75 billion. The company also said that it expects FY2018 non-GAAP EPS of $2.55 to $2.80 versus the previous guidance of $2.40 to $2.65. Analysts are expecting FY EPS of $2.68.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.





This article appears in: Investing , ETFs
Referenced Symbols: EEM , XLF , SPY , GDX , QQQ



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