ETF Preview: Broad Market ETFs Gain After Summers Withdraws From Fed Chairman Race

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

SPDR S&P 500 ETF Trust ( SPY ): +0.14%

iShares MSCI Emerging Markets Index ( EEM ): +0.49%

iShares MSCI Japan Index ( EWJ ): +0.04%

Market Vectors Gold Miners ( GDX ): +0.40%

iPath S&P 500 VIX Short Term Futures ( VXX ): -1.36%, near 52 week lows

Pre-Market Movers Monday

EIDO +3.7%

FAS +3.19

AGQ -3.5%

SRTY -4.20%

SPY +1%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are all posting strong gains. Actively traded PowerShares QQQ (QQQ) is up 0.9% setting a 52-week high of $78.77.

U.S. stock market futures are sharply higher after Larry Summers said he wouldn't run for chairman of the Federal Reserve. Summers, who had been seen as a leading contender, was perceived by investors as keen to taper the Fed's stimulus program. Janet Yellen, the Fed's current vice chair is now seen as a leading contender and is seen as favoring a more gradual easing of stimulus.

Winners and Losers

Financial -

Select Financial Sector SPDRs (XLF) was up 1.1% and is near 52-week highs. Direxion Daily Financial Bull 3X shares (FAS) was up 3.2%. Its bearish counterpart, FAZ, was down 3.2%.

Among financial stocks, American Realty Capital Properties (ARCP) said it expects to raise about $481 million through the private placement of about 21.7 million convertible notes and 15.1 million in common shares. ARCP is flat at $12.74.

Technology -

Technology Select Sector SPDR ETF (XLK) was up 0.8%, setting a 52-week high of $32.53; iShares Dow Jones US Technology ETF (IYW) and iShares S&P North American Technology-Software Index (IGV) are flat after closing lower Friday. iShares S&P North American Technology ETF (IGM) is also unchanged.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) are quiet, though trading near the top of their 52-week ranges. SPDR S&P International Technology Sector ETF (IPK) is also flat after slipping Friday.

In sector news, shares in Internet Gold Golden Lines (IGLD) are up more than 19%, setting a 52-week high of $7.12, after Israeli regulators gave the go-ahead to the takeover of Bezeq Israeli Telecommunications Corp (BEZQ) in which it has a 31% stake, Bloomberg reported. Internet Gold owns the Bezeq stake through its B Communications unit (BCOM).

Energy -

Dow Jones U.S. Energy Fund (IYE) is unchanged but near 52-week highs. Energy Select Sector SPDR (XLE) is up 0.48%.

In sector news, L&L Energy (LLEN) said it has reached a strategic agreement with the China Low-Carbon Industry Investment Center to jointly develop new energy initiatives. The investment center has invited L&L to build new energy projects using low carbon and new energy technology on its land located at an industrial park in Zhuozhou City, Hebei Province, approximately 30 miles from Beijing City center. The shares are up 1.6% pre-bell.

Commodities -

Crude was down 1.6%, and United States Oil Fund (USO) was down 1.5%. Natural gas was down 0.45%, and United States Natural Gas Fund (UNG) is off 0.4%.

Gold was up 0.2% and the SPDR Gold Trust (GLD) was down 0.95%. Silver was up 0.64%, while the iShares Silver Trust (SLV) was down 1.8%.

Healthcare -

Health Care SPDR (XLV) is flat, but near 52-week highs after edging ahead Friday; Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) are also edging towards 52-week tops. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was flat after a higher close Friday.

In corporate news, Pluristem Therapeutics (PSTI) is up 8.4% at $3.49 after the FDA has lifted the clinical hold previously placed on the company's U.S. Phase II Intermittent Claudication (IC) study on June 4. In its letter to Pluristem, the FDA indicated Pluristem had satisfactorily addressed all the clinical hold issues and the company may proceed with the study.

Consumer -

Consumer Staples Select Sector SPDR (XLP) was up 0.71%; other consumer ETFs Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) are unchanged pre-bell.

In sector news, Sears Holdings Corporation (SHLD) says it intends to obtain a senior secured term loan facility of up to $1.0 billion. If consummated, the Incremental Term Loan would be issued under the Existing Credit Agreement, which currently provides for a $3.275 billion asset-based revolving credit facility. Sears is flat pre-market.

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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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