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ETF Preview: ETFs, Futures Higher as Wall Street Look Ahead to Trump-Kim Summit


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

iShares Inc iShares MSCI Brazil ETF ( EWZ ): +1.1%

iShares MSCI Emerging Index Fund ( EEM ): +0.1%

SPDR S&P 500 ( SPY ): +0.01%

Invesco QQQ Trust, Series 1 ( QQQ ): -0.1%

Barclays Bank PLC iPath S&P 500 VIX Short-Term Futures ETN ( VXX ): +0.8%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were modeslty higher. Actively traded PowerShares QQQ ( QQQ ) was down 0.1%.

US stock futures were looking to start the week with mild gains as traders stayed on the sidelines after a tense G7 summit in Canada and ahead of a highly anticipated summit between US President Donald Trump and North Korean leader Kim Jong Un in Singapore.

Aside from data on a survey of consumer expectation at 11 am ET, there are no other economic data due for release. But looking ahead to the rest of the week, investors will be keeping a close watch on the Federal Reserve's two-day policy meeting starting Tuesday. Expectations are for the central bank to announce an increase in interest rates.

Power Play: Health Care

Health Care SPDR (XLV) was up 0.1% and other health care funds Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were flat. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was inactive.

Envision Healthcare (EVHC), provider of doctor and ambulance services, said it agreed to be acquired by global investment firm KKR & Co. LP (KKR) in an all-cash transaction for $46 a share in cash, or about $9.9 billion, including the assumption of debt. The deal is expected to close in Q4. Envision said the buyout price was a 32% premium to Envision's volume-weighted average share price from Nov.1, 2017, the day following the company's announcement that it was reviewing strategic alternatives. Envision said the transaction price represents a multiple of 10.9x trailing 12 months adjusted EBITDA and 10.1x 2018 anticipated adjusted EBITDA. EVHC shares rose more than 2% and KKR shares rose 0.1%.

Winners and Losers

Financial

The Select Financial Sector SPDRs (XLF) was up 0.3%. Direxion Daily Financial Bull 3X shares (FAS) was up 0.2% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was up 0.5%.

Flagstar Bancorp (FBC) has launched a registered public secondary offering of 8 million shares of the company's common stock, or approximately 14% of the company's outstanding common stock. All shares will be sold by MP Thrift Investments LP. The company said it intends to grant the underwriters a 30-day option to purchase up to an additional 1.2 million shares of the company's common stock. Flagstar is not selling any shares of common stock and will not receive any proceeds from the proposed offering.

Technology

Technology Select Sector SPDR ETF (XLK) was flat 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.

Yandex NV (YNDX) rose 1.8% after the internet services company said that its board has authorized a repurchase of up to $100 million of class A shares. Yandex said the buyback program will be in effect for up to 12 months.

Energy

Dow Jones US Energy Fund (IYE) was flat and Energy Select Sector SPDR (XLE) was down 0.2%.

Pacific Gas & Electric Co (PCG) dropped more than 5% after California state officials said Friday the company's power lines sparked a fire that swept northern California's wine country last fall, killing 46 people. Investigators said they had found "evidence of alleged violations of state law" by Pacific Gas & Electric Company and referred those cases to county prosecutors for further review. The state's insurance commissioner put insured losses from the tragedy at $9 billion. The company said, in response, it would review California Department of Forestry and Fire Protection (CAL FIRE) reports. It said it still believes its overall programs met state standards.

Commodities

Crude was down 1.1%. United States Oil Fund (USO) was down 1%. Natural gas was down 2.1% while United States Natural Gas Fund (UNG) was up 2.8%.

Gold was up 0.3%. SPDR Gold Trust (GLD) was up 0.3%. Silver was up 1.2%, while iShares Silver Trust (SLV) was up 1.3%.

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 territory.

Shake Shack (SHAK) filed on Friday an automatic shelf registration statement for the primary offering of an unspecified amount of its common and preferred stock, debt securities, warrants, depositary shares, rights and units, and the secondary offering of 12.3 million shares of its common stock. The prospectus provides for the sale of the securities from time to time, in one or more classes or series, in amounts and at prices to be determined at the time of each offering.

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: EWZ , EEM , SPY , QQQ , VXX


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