ETF Preview: Broad Market ETFs Edge Lower As Stock Futures Point to Lower Open

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

SPDR S&P 500 ( SPY ): -0.20%, but near its all-time high

iShares Russell 2000 Index ( IWM ): -0.72%

iShares MSCI Emerging Markets Index ( EEM ): +0.62%

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.19%, near its 13-year high

Direxion Daily Small Cap Bear 3X Shares ( TZA ): +2.21%

Pre-Market Movers

TZA +1.2%

TVIX +0.72%

TNA -1.5%

INDL -0.9%

EFA -0.9%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV are heading lower pre-market after closing down on Tuesday. Actively traded PowerShares QQQ ( QQQ ) edged down 0.008%.

U.S. stock futures are pointing to a slightly lower open. Investors are taking a breather with indices near record levels ahead of key data. The first figures out Wednesday morning were disappointing, with May ADP private payrolls adding 179,000 in the month compared with estimates of 210,000. Other data is expected to show the trade deficit at $41.0 billion, and Q1 non-farm productivity and costs -2.9% and +5.2% respectively.

Power Play: Energy

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) were firmer, nearing record highs.

Among stocks, Yingli Green Energy Holding Company (YGE) and other China solar power company shares are down pre-market after the U.S. decided to impose tariffs on solar energy imports from China. The company, which makes vertically integrated photovoltaic modules said it will be subject to a preliminary anti-subsidy tariff of 26.89% on certain PV solar module imports. The U.S. Commerce Department imposed the tariffs on certain products assembled in China using components from a third country claiming they had benefited from unfair subsidies.

Winners and Losers


Select Financial Sector SPDRs (XLF) was down 0.5%. Direxion Daily Financial Bull 3X shares (FAS) was unchanged and bearish counterpart, FAZ, was up 0.4%.

Among sector news, Dai-ichi Life Insurance Company has entered into an agreement to acquire all outstanding shares of Protective Life Corporation (PL) for $70.00 per share in cash, or a total transaction value of approximately $5.7 billion. The acquisition price represents a 34% premium over Protective's closing stock price of $52.30 on May 30. The transaction, which has been approved by both companies' boards of directors, is expected to close by the end of 2014 or early 2015.


Technology Select Sector SPDR ETF (XLK) and iShares Dow Jones US Technology ETF (IYW) are inactive, though both are within cents of their highest levels in more than a decad. iShares S&P North American Technology ETF (IGM), iShares S&P North American Technology-Software Index (IGV) and SPDR S&P International Technology Sector ETF (IPK) were unchanged pre-bell after a lower close Tuesday.

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

In corporate news, DragonWave (DRWI, DWI.TO) surged by 23% in recent U.S. pre-market trading on Wednesday after saying it now expects Q1 2015 revenue to show growth of approximately 60% over the revenue achieved in Q4 2014. Shares in the developer of broadband wireless equipment closed at $1.22 in the U.S. on Tuesday, in a 52-week range of $1.08 - $3.58.


Crude was up 0.6%; United States Oil Fund (USO) gained 0.4%. Natural gas rose 0.11% and United States Natural Gas Fund (UNG) was up 0.8%.

Gold is leaning higher and silver was also tipping into the green. Among rare metal funds, SPDR Gold Trust (GLD) is slightly lower and iShares Silver Trust (SLV) was inactive.

Health Care

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

In corporate news, Pfizer (PFE) and health technology company KineMed renewed their non-exclusive research collaboration for the advancement of novel approaches in Type II diabetes. The collaboration will KineMed's technology platform in testing the impact of potential drug candidates on specific metabolic pathways. PFE was flat in pre-market trading on Wednesday after losing 0.1% Tuesday after hours.


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

Retail ETFs SPDR S&P Retail (XRT), Market Vectors Retail ETF (RTH) and PowerShares Dynamic Retail (PMR) was unchanged after a mixed close Tuesday.

Among stocks, luxury goods company Coach Inc. (COH) has been downgraded by analysts at Sterne Agee to a neutral rating from a buy. The firm also lowered its price target on the stock to $41 from $51 a share. In pre-market trading, shares of COH are down 1.39% to $39.80, and have a 52-week trading range of $40.11 - $59.58.

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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