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

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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 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.


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.


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


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.

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This article appears in: Investing , ETFs
Referenced Symbols: QQQ , NUGT , AGQ , USO , UNG

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