ETF Preview: Broad Market ETFs Decline Pre-Market in Line With Stock Futures

Pre-Market Movers

NUGT +8.8%

OIL +4.5%

GDXJ +3.8%

DUST -7.5%

SCO -2.9%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were all weaker pre-market. Actively traded PowerShares QQQ ( QQQ ) was down 0.7%.

U.S. stock futures are pointing to a lower open on Monday as markets reopen after the Easter break. Weak job figures released on Friday are expected to weigh on sentiment. Labor Department data showed U.S. employers last month added the fewest jobs in more than a year. The rise of 126,000 jobs was well below economists' expectations for a gain of 245,000.

Power Play: Consumer

Consumer Staples Select Sector SPDR ( XLP ), iShares Dow Jones US Consumer Goods ( IYK ), and Vanguard Consumer Staples ETF ( VDC ) were inactive after closing mostly higher Thursday.

Consumer Discretionary Select Sector SPDR ( XLY ), SPDR S&P Retail (XRT) , PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were also unchanged.

Shares of Tesla Motors (TSLA) gained 3% pre-market Monday after the electric carmaker said it delivered 10,030 cars in Q1, setting a new quarterly record.

Deliveries rose 55% year-on-year and were above the company's guidance of 9,500 units. The numbers suggest Tesla is on track to deliver more than 31,655 vehicles sold last year, the Wall Street Journal noted.

Going forward, Tesla said it will publish the number of new car deliveries within three days of quarter end, since inaccurate sources of information have sometimes been used by others to project the number of vehicle deliveries.

Winners and Losers


Select Financial Sector SPDRs (XLF) and Direxion Daily Financial Bull 3X shares (FAS) were lower pre-bell, while Direxion Daily Financial Bear 3X Shares (FAZ) was up 2.6%.

Realty Income (O) shares were down 2% in recent pre-market trade after the real estate company said it has started an underwritten public offering of 5 million shares in conjunction with its inclusion in the S&P 500 Index, expected to occur after the close of trading n April 6.

Realty Income said it plans to use net proceeds to repay borrowings under its $1.5 billion acquisition credit facility, which is generally used to fund real estate acquisitions.


Technology Select Sector SPDR ETF (XLK) was firmer, iShares Dow Jones US Technology ETF (IYW), iShares S&P North American Technology ETF (IGM) were unchanged and iShares S&P North American Technology-Software Index (IGV) was down 0.15%. SPDR S&P International Technology Sector ETF (IPK) was flat.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) was inactive, and Semiconductor Sector Index Fund (SOXX) was tipping into the red.

Cheetah Mobile (CMCM) said it has signed a commercial agreement with Nanigans, a provider of social mobile advertising software company in conjunction with a recent $24 million investment in the company's series B financing.

The mobile internet company said it will be the exclusive partner of Nanigans in the Greater China region to manage campaigns for advertisers using Nanigans advertising automation software.


Dow Jones U.S. Energy Fund (IYE) was flat and Energy Select Sector SPDR (XLE) was up 0.7%.

Williams Partners L.P (WPZ) said it has acquired another 21% stake in Utica East Ohio Midstream, of which the natural gas infrastructure company already owned 49%, from a subsidiary of EV Energy Partners (EVEP) for approximately $575 million.

Utica East Ohio Midstream is comprised of gathering, processing, fractionation and storage assets that are anchored by long-term, fee-based contracted commitments.


Crude was up 2.4%; United States Oil Fund (USO) rose 1.3%. Natural gas fell 2.8% and United States Natural Gas Fund (UNG) fell 2.5%.

Gold was up 1.5%, and silver fell 2.6%. Among rare metal funds, SPDR Gold Trust (GLD) gained 1.3% and iShares Silver Trust (SLV) rose 2%.

Mining firm Goldcorp (GG) said Monday it has entered into a binding letter of intent to sell its 40% stake in the South Arturo Mine Project in Nevada to Canada-based Premier Gold Mines for $20 million in cash and a further 5% interest in the Rahill-Bonanza joint venture in Ontario, subject to certain conditions

The South Arturo mine is a joint venture between Goldcorp and another Canada-based mining firm Barrick Gold (ABX).

Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were flat after a higher close Thursday. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was down 1.2%.

Ventas (VTR), a real estate investment trust, said Monday that it has signed a definitive agreement to acquire privately-owned Ardent Medical Services, Inc., a provider of health care services and one of the ten largest for-profit hospital companies in the U.S., for $1.75 billion in cash.

Ardent Health Services will be entitled to distribute up to $75 million in excess cash to its existing shareholders. It is owned by private equity funds managed by Welsh, Carson, Anderson & Stowe. Based in Nashville, Tennessee, Ardent Health Services and its subsidiaries own and operate leading health systems in major markets in the U.S.

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

SPDR S&P 500 (SPY): +0.3%

VelocityShares 3X Long Natural Gas ETN (UGAZ): +12%

VelocityShares 3X Long Crude ETN (UWTI): -4.7%

iShares MSCI Emerging Index Fund (EEM): +1.4%

Market Vectors Gold Miners ETF (GDX): -0.9%

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 All rights reserved. Unauthorized reproduction is strictly prohibited.

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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