Quantcast

ETF Preview: Broad Market ETFs Gain in Line With Futures, Metals Funds Outperform


Shutterstock photo

Pre-Market movers Thursday:

NUGT +9%

GDXJ +6%

AGQ +6.5%

TVIX +0.6%

XIV -0.4%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were higher. Actively traded PowerShares QQQ ( QQQ ) was up 0.1%. Precious metal funds were the best performers, reflecting a gain in the underlying price of the commodities. Silver earlier this week entered a bull market on expectations a pick up in China will boost demand for the metal, which has widespread industrial uses. Direxion Daily Gold Miners Bull 3X ETF ( NUGT ) was up 10% and the best performer pre-bell while ProShares Ultra Silver ( AGQ ) was up 7%.

U.S. stock futures are pointing to a higher open as bullish jobless figures outweighed a miss in the April Philadelphia Fed Business Outlook survey. Initial jobless claims fell 6,000 to 247,000 in the week ending April 9th, handily topping estimates for a gain of 12,000 to 265,000.

However, the April Philadelphia Fed Business Outlook Index fell to -1.6 From +12.4, missing +9.0% estimates, while the March Chicago Fed National Activity Index fell to 0.44 from a revised 0.38 in February.

Power Play: Commodities

Crude was up 0.1%; United States Oil Fund ( USO ) gained 1.5%. Natural gas was barely changed and United States Natural Gas Fund ( UNG ) slipped 0.3%.

Gold was up 1.9%, while silver was up 1.3%. Among rare metal funds, SPDR Gold Trust (GLD) was up 2.7% and iShares Silver Trust (SLV) was up 3.8%.

Winners and Losers

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) all inactive after closing higher. 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 and closed higher.

Verizon Communications (VZ), a wireless network provider, reported Q1 results in line with the Street view on earnings per share as revenues fell short of expectations.

The company reported Q1 net income of $4.43 billion, or $1.06 per share, up from $4.34 billion, or $1.02 per share, in Q1 2015 and in line with analyst estimates of $1.06. No adjustments were made to EPS for the quarter.

Total revenues of $32.17 billion were up from $31.98 billion in Q1 2015 but fell short of analyst projections of $32.48 billion.

Financial

Select Financial Sector SPDRs (XLF) fell 0.7%. Direxion Daily Financial Bull 3X shares (FAS) gained 0.7% while its bearish counterpart, FAZ, was unchanged.

Home BancShares (HOMB), parent company of Centennial Bank, reported a 33.1% higher-than-expected profit for the first quarter, helped by solid organic loan growth.

Net income rose to $41.4 million, or $0.59 per diluted share, for the January-to-March quarter, from $31.1 million, or $0.46 per diluted share, for the year-earlier period.

That beat the $0.57 average estimate of eight analysts polled by Capital IQ.

Energy

Dow Jones U.S. Energy Fund (IYE) was flat; Energy Select Sector SPDR (XLE) was up 0.5%.

Consumer

Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK) and Vanguard Consumer Staples ETF (VDC) were inactive after a lower close.

Consumer Discretionary Select Sector SPDR (XLY) was leaning higher and retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were all flat after a positive close.

Under Armour (UA) shares were higher over 4% in recent pre-market trade after the company reported better-than-expected Q1 results and raised its guidance for 2016.

The maker of apparel, footwear and accessories said net income rose to $19.2 million or $0.04 per diluted share rom $11.7 million or $0.03 a year ago, exceeding the $0.02 average estimate from analysts polled by Capital IQ.

Revenue rose to $1.05 billion from $804.9 million and came in just ahead of the $1.04 billion consensus.

Health Care

Health Care SPDR (XLV) gained 0.8%, iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were inactive and Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was down 0.1%.

ADRs of Novartis (NVS) were slightly lower pre-market Thursday after the Swiss drugmaker reported mixed Q1 results, with better-than-expected core earnings on lower revenues that missed forecasts, and reaffirmed its full-year revenue outlook just above forecasts.

Q1 core EPS was $1.17 per share, down from $1.33 per share a year earlier but beating the $1.11 per share consensus compiled by Capital IQ.

Active broad-market exchange-traded funds in Wednesday's regular session:

iPath S&P 500 VIX ST Futures ETN (VXX): -1.7%

SPDR S&P 500 (SPY): +0.2%

Market Vectors Gold Miners ETF (GDX): +2%

ProShares Trust Ultra VIX Short Term Futures ETF (UVXY): -3%

iShares MSCI Emerging Index Fund (EEM): +0.6%

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: QQQ , NUGT , AGQ , USO , UNG



More from MT Newswires

Subscribe






MT Newswires
Contributor:

MT Newswires

Market News, Commodities










Research Brokers before you trade

Want to trade FX?