ETF Preview: Broad Market ETFs Edge Lower in Pre-Market, Most at Multi-Year Highs

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

SPDR S&P 500 ( SPY ): +0.51%, hit an all-time high

iShares MSCI Emerging Markets Index ( EEM ): +0.36%, near its 52-week high

iShares Russell 2000 Index ( IWM ): +1.25%

iPath S&P 500 VIX ST Futures ( VXX ): -1.17%, with a record low

Direxion Daily Small Cap Bear 3X Shares ( TZA ): -3.57%, near record lows

Pre-Market Movers

FAZ +1.7%

TVIZ +1.4%

EVS -1.65%

TNA -1.33%

EPI -1%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were weaker pre-market after closing higher on Monday. Likewise, actively traded PowerShares QQQ (QQQ) is down 0.15% after reaching its highest levels in 14 years on Monday.

U.S. stock futures are pointing to a slightly lower open on Tuesday, signalling the indices are likely to take a pause after a record-breaking run. Markets across Europe are mixed, with the Euro Stoxx 50 edging higher, helped by gains in Germany, Switzerland and France.

Power Play: Technology

Technology Select Sector SPDR ETF (XLK), iShares Dow Jones US Technology ETF (IYW) and iShares S&P North American Technology ETF (IGM) are all flat pre-market after closing higher Monday; iShares S&P North American Technology-Software Index (IGV) and SPDR S&P International Technology Sector ETF (IPK) were also flat. IPK bucked the trend Monday to close lower.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were unchanged after touching record highs on Monday.

In corporate news, Analysts at Canaccord Genuity have initiated coverage of Applied Micro Circuits Corporation (AMCC) with a buy rating and a price target of $16 a share. The price target represents a potential upside of 55% from the stock's current market price. Shares of AMCC are up 0.88% to $10.30 in today's pre-market trading , moving within a 52-week spread of $7.64 - $15.09.

Winners and Losers


Select Financial Sector SPDRs (XLF) slipped after-hours after reaching multi-year highs during the regular session. Direxion Daily Financial Bull 3X shares (FAS) was down 0.9%, after also hitting record highs. Its bearish counterpart, FAZ, was up 0.9% pre-market.

Among sector news, Eagle Bancorp (EGBN) late Monday said it has signed an agreement to merge business with Virginia Heritage Bank, with Eagle Bancorp being the surviving company. As agreed, each Virginia Heritage Bank shareholder will be entitled to receive a combination of Eagle common stock and cash for each share of VHB common stock they own. The consideration for the acquisition will be $29 per share, so long as the average closing price of a share of Eagle common stock over a 20 trading day period ending five trading days prior to closing is at least $29 and not more than $35.50.


Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) all ended weaker after hitting records.

Retail ETFs SPDR S&P Retail (XRT), Market Vectors Retail ETF (RTH), and PowerShares Dynamic Retail (PMR) were flat and ended mixed.

Among stocks, Francesca's Holdings (FRAN), which operates retail boutiques, posted Q1 earnings and revenue below expectations and guided for mostly lower-than-expected Q2 and full-year results, partly because of a plan to dispose of slow-moving inventory. Net income fell to $8.6 million, or $0.20 per share from $10.9 million, or $0.24 per share a year ago and below the consensus for $0.22, according to analysts polled by Capital IQ. The shares are down 10% pre-bell.


Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) are unchanged and hit records on Monday.

Among stocks, HudBay Minerals (HBM, HBM.TO) late Monday said it has extended its offer to acquire Augusta Resource (AZC, AZC.TO) shares for consideration per Augusta Share of 0.315 of a Hudbay common share until 5:00 p.m. (Toronto time) on June 20. HBM was flat in U.S. pre-market trading on Tuesday after closing at $8.89 Monday.


Crude was up 0.3%; United States Oil Fund (USO) was up 0.4%. Natural gas was down 0.6% and United States Natural Gas Fund (UNG) was down 0.9%.

Gold was up 0.11% and silver was up 0.07%. Among rare metal funds, SPDR Gold Trust (GLD) was up 0.16% and iShares Silver Trust (SLV) was flat.

Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) all closed lower and are unchanged pre-market. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was also flat.

In corporate news, Avanir Pharmaceuticals (AVNR) is higher in pre-market trading after it said Tuesday that COMPASS, its Phase IIIb clinical trial comparing the efficacy and safety of the investigational product AVP-825 22mg to sumatriptan 100mg tablets for the treatment of acute migraines in adults, met the primary efficacy endpoint. Shares are up 7.68% at $5.75, with a 52-week range of $2.62 - $6.00.

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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