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ETF Preview: Broad Market ETFs Edge Higher in Step With Futures Amid Positive Retail Sales, Jobs Data


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Pre-Market Movers

OIL +3.9%

DUST +3%

RUSS +2.4%

NUGT -3.6%

SQQQ -3.55%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were higher pre-market Thursday. Likewise, actively traded PowerShares QQQ ( QQQ ) was up 0.09%.

U.S. stock futures were pointing to a higher open after positive U.S. economic data and a rebound in oil prices . Retail sales data showed the biggest gain in eight months in November, while U.S. initial jobless claims fell 3,000 last week to 294,000, just below the view for 295,000. Retail sales were up 0.7% compared with the consensus for a gain of 0.4%, while sales for October were revised up to 0.5% from 0.3%.

Power Play:Consumer

Consumer Staples Select Sector SPDR ( XLP ), iShares Dow Jones US Consumer Goods ( IYK ), and Vanguard Consumer Staples ETF ( VDC ) were unchanged pre-bell and closed lower on Thursday.

Staples ( SPLS ) shares jumped in Thursday's pre-market session after regulatory filings showed hedge fund Starboard Value took a fresh take in the office-products retailer while increasing its position in Office Depot (ODP), leading to speculation the activist investor may push for a merger of the rivals.

SPLS was up 11% at $16.50 in recent pre-market trading , on track to surpass its 52-week high of $16.21 if the gain is sustained in the regular session.

ODP, meanwhile, climbed 7.1% in recent pre-market trading to $7.20, also on track to top its 52-week high of $7.01.

Winners and Losers

Energy

Dow Jones U.S. Energy Fund (IYE) was down 0.21% and Energy Select Sector SPDR (XLE) slipped 0.09%.

Gran Tierra Energy (GTE) Thursday reported it would slash its 2015 capital budget by $157 million YOY to $310 million, due in part to "uncertainty" regarding oil prices, and its projection of a $60 average for a Brent barrel in 2015.

GTE projected 2015 production to average between 26,000 and 27,000 barrels of oil equivalent per day, or 21,000 and 22,000 boe/pd net after royalties, from its fields in Brazil, Colombia and Peru. In Q3 2014, GTE reported 25,340 boe/pd or 19,297 boe/pd net after royalties.

Financial

Select Financial Sector SPDRs (XLF) edged up 0.12%. Direxion Daily Financial Bull 3X shares (FAS) gained 0.4%, while Direxion Daily Financial Bear 3X Shares (FAZ) tumbled 1.5%.

Assured Guaranty (AGO) says its close to buying Radian's (RDN) financial guaranty business for about $800 million, Reuters reports of the deal supposedly to be announced in the next few days.

The financial guaranty business provides insurance and reinsurance of municipal bonds, structured finance transactions and other credit-based risks.

AGO trades in a 52-week range of $20.02 to $26.78 with shares having closed down 1.9% at $25.50.

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) are inactive pre-market after ending lower on Wednesday. SPDR S&P International Technology Sector ETF (IPK) was also flat.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were also unchanged after a weaker close.

Qualcomm Technologies, a Qualcomm (QCOM) company, has upgraded its Snapdragon 810 processor to increase support of download speeds from peak data rates of 300 Mbps to the latest LTE standard.

Snapdragon 810 can now support LTE Category 9 Carrier Aggregation connectivity, displaying download speeds of up to 450 Mbps over three 20MHz LTE carriers.

Shares in the maker of digital communications were edging higher in the pre-market session Thursday. They were marginally higher Wednesday after hours but close to the bottom of 52-week range $67.67 - $81.97.

Commodities

Crude gained 0.77%; United States Oil Fund (USO) fell 1.2%. Natural gas was up 0.7% and United States Natural Gas Fund (UNG) rose 1%.

Gold was down 0.6%, and silver was down 0.77%. Among rare metal funds, SPDR Gold Trust (GLD) was down 0.3% and iShares Silver Trust (SLV) was up 0.18%.

Health Care

Health Care SPDR (XLV) slipped 0.16%, while iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were inactive. Likewise, Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was flat pre-market but fell after hours after a closing more than 2% lower.

Mylan (MYL), a pharmaceutical company, has launched its Methocarbamol injection, a generic version of Hikma Maple's Robaxin, in the U.S. The drug is used for the relief of discomfort associated with acute, painful musculoskeletal conditions.

The Methocarbamol injection had U.S. sales of approximately $15.1 million for the 12 months ending September 30, 2014, according to data provided by MYL and attributed to IMS Health.

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

SPDR S&P 500 (SPY): -0.71%

iShares MSCI Emerging Markets Indx (EEM): -1.05%

Energy Select Sector SPDR (XLE): -3.25%

iShares Russell 2000 Index (IWM): -0.81%

iPath S&P 500 VIX Short Term Futures (VXX): +3.68%

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 , Commodities
Referenced Symbols: QQQ , XLP , IYK , VDC ,




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