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ETF Preview: Broad Market ETFs Decline, Consumer Sector in Focus on Earnings Misses, Merger News

Pre-Market Movers Wednesday:

NUGT +7.6%

AGQ +4.7%

VGT +3.4%

ZSL -3.6%

UCO -2.9%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were weaker pre-bell. Actively traded PowerShares QQQ ( QQQ ) fell 0.2%..

U.S. stock futures are pointing to a lower open, pulled down in part by declines in some heavyweight stocks after disappointing earnings. Disney ( DIS ) is down more than 5% pre-market after Q2 earnings reported late Tuesday missed analysts' expectations, while office supplies company Staples ( SPLS ) plunged 15% after ending a merger accord with Office Depot ( ODP ), which tanked 33% pre-bell.

Power Play: Consumer

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

Consumer Discretionary Select Sector SPDR (XLY) fell 0.3% while retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were inactive.

Shares of Macy's (M) were slumping pre-market Wednesday after the company cut its FY16 earnings and comparable sales outlook while reporting better-than-expected Q1 adjusted earnings on lower sales that fell short of forecasts.

For Q1 ended April 30, the retailer reported adjusted EPS of $0.40 per share, two cents above the mean estimate provided by Capital IQ.

Reported earnings were $116 million or $0.37 per share, down from $193 million or $0.56 per share in the year-ago period.

Revenues fell 7.4% to $5.77 billion and fell short of the $5.94 billion consensus.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) was flat. Direxion Daily Financial Bull 3X shares (FAS) was up 0.2% while its bearish counterpart, FAZ, was up 1.5%.

German insurer Allianz reported lower operating profit for the first quarter as clients withdrew funds from its Pacific Investment Management Co. asset management unit, which was partially compensated by better results in the property and casualty business.

Operating profit decreased by 3.5% to 2.8 billion euros ($3.19 billion), the company said in a statement on its website. Revenue fell 6.4% to 35.4 billion euros, reflecting a product overhaul and lower life and health insurance premiums from the unit-linked business in Italy and Taiwan, it said.

Net income, however, soared to 2.2 billion euros from 1.8 billion a year earlier, owing to some one-off factors. The results of the property and casualty business were helped by fewer claims for natural disasters.

Technology

Technology Select Sector SPDR ETF (XLK) fell 0.5%, 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 unchanged after a higher close. Meanwhile, SPDR S&P International Technology Sector ETF (IPK) was edging higher.

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

Canadian Solar (CSIQ), a solar power generator, reported Q1 results that beat the Street view on both earnings per share and total revenues as the company raised full year revenue guidance.

The company reported Q1 net income of $22.6 million, or $0.39 per diluted share, down from $61.3 million, or $1.04 per diluted share, in Q1 2015 but topping analyst estimates of $0.18. The company made no adjustments to EPS for the quarter.

Total revenues of $772.4 million were down from $1.12 billion in Q1 2015 but exceeded analyst projections of $662.1 million.

Energy

Dow Jones U.S. Energy Fund (IYE) was flat; Energy Select Sector SPDR (XLE) was inching higher.

Yingli Green Energy (YGE), photovoltaic (solar) module provider, Wednesday reported Q4 earnings and revenues below street views, and forecast Q1 product shipments about flat quarter-over-quarter.

The China-based manufacturer reported Q4 adjusted non-GAAP loss per ADS of $7.20, compared to the street view of $2.06, if comparable, as compiled by Capital IQ. Yingli reported Q4 revenues of $325.7 million, below the street view of $372.3 million.

Yingli traded down pre-bell 3.22% to $3.31, inside a 52-week trading range of $2.86 to $17.50.

Commodities

Crude was up 0.2%; United States Oil Fund (USO) was up 0.4%. Natural gas leaning lower and United States Natural Gas Fund (UNG) fell 0.3%.

Gold was up 1.1%, while silver was flat. Among rare metal funds, SPDR Gold Trust (GLD) gained 2.9% and iShares Silver Trust (SLV) was up 2.2%.

Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were unchanged after a higher close. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was also flat.

Pernix Therapeutics Holdings (PTX), a specialty pharmaceutical company, said Doug Drysdale has agreed to step down as Chairman of the board, Chief Executive Officer and President, and has resigned as a member of the board of directors, effective May 9.

John Sedor, a current director of Pernix Therapeutics, has been appointed Chairman of the board and Interim Chief Executive Officer while the board of directors searches for a permanent CEO.

The board currently intends that Sedor will remain as chairman of the board when a new CEO is appointed.

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

SPDR S&P 500 (SPY): +1%

iPath S&P 500 VIX ST Futures ETN (VXX): -3.9%

iShares MSCI Emerging Index Fund (EEM): +1.5%

VelocityShares Daily 2x VIX ST ETN (TVIX): -6.7%

ProShares Trust Ultra VIX Short Term Futures (UVXY): -7.3%

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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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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