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ETF Preview: Broad Market ETFs Gain as Futures Rally After Rebound in Europe

Pre-Market Movers Friday:

DUST +6.5%

DDM +6%

ERX +4.3%

TVIX -7.7%

NUGT -6.1%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were higher pre-bell. Actively-traded PowerShares QQQ ( QQQ ) gained 1.3%.

U.S. stocks are pointing to a higher open after Federal Reserve Chair Janet Yellen said in a speech Thursday evening that she anticipates a rake hike sometime this year, saying the economy is "not far away from full employment" and that weak overseas growth won't have a significant impact on policy. However, she was forced to cut her speech short after feeling unwell.

Stock futures are also getting support from a rebound in European equities, which gained more than 3% towards the close of trading.

Power Play: Health Care

Health care funds were mostly higher and outperforming the broader market. Health Care SPDR ( XLV ) gained 3.2%, iShares Dow Jones US Healthcare ( IYH ) and Vanguard Health Care ETF ( VHT ) were flat. Biotech ETF iShares NASDAQ Biotechnology Index ( IBB ) was up 1.7%.

Shares of a biopharmaceutical company Arrowhead Research (ARWR) continue their rise in Friday's pre-market session after data showed that its hepatitis B treatment, ARC-520, significantly reduced the virus in humans and chimpanzees.

Clinical data show that ARC-520 achieves significant HBV s-Antigen (HBsAg) reductions in humans, particularly in HBeAg-positive patients. In an April analysts report, Jefferies' Eun K. Yang said that while Arrowhead's Arc 250 likely won't reach the market until 2020, it could see peak sales of $4.5 billion.

Winners and Losers

Technology

Tech funds were all inactive after closing the day mixed on Thursday. Technology Select Sector SPDR ETF (XLK), 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 flat. SPDR S&P International Technology Sector ETF (IPK) was also unchanged.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were also flat after closing lower.

BlackBerry (BBRY), a mobile communications company, reported a wider Q2 loss than expected by analysts as revenues missed Street projections.

The company reported a Q2 adjusted loss of $66 million, or $0.13 per share, wider than the loss of $11 million, or $0.02 per share, a year ago and wider than the loss of $0.09 anticipated by analysts. On a GAAP basis the company reported net income of $51 million, or a loss of $0.24 per diluted share, compared to a loss of $207 million, or $0.39 per diluted share, in the same period a year ago.

Total revenues of $490 million were down from $916 million in Q2 2014 and fell short of analyst projections of $603.5 million.

Financial

Funds in the financial sector were mostly higher with FAS significantly outperforming the broader market. Select Financial Sector SPDRs (XLF) was up 0.12%. Direxion Daily Financial Bull 3X shares (FAS) gained 3.6%; Direxion Daily Financial Bear 3X Shares (FAZ) fell 2.9%.

Industrial auctioneer Ritchie Bros. (RBA) Friday reported more than $70 million in gross sales at its "largest ever" auction in Texas on September 23 and 24. The auction has set a new record for online sales and and attracted over 4,325 bidders.

The company will be holding more than 90 live unreserved auctions in the remainder of the year, including three in Texas.

The stock wasn't moving in Friday's pre-market trade in New York but was slightly lower Thursday after hours, at the bottom half of 52-week range $21.58 - $30.85.

Energy

Energy funds were either flat or higher in line with the broader market. Dow Jones U.S. Energy Fund (IYE) was flat and Energy Select Sector SPDR (XLE) was up 1%.

Genesis Energy (GEL) shares were initiated by Wunderlich Securities with a buy rating and $50 price target.

Commodities

Crude was up 0.9%; United States Oil Fund (USO) was up 0.5%. Natural gas was down 1.2% and United States Natural Gas Fund (UNG) fell 1.1%. Gold fell 0.8%, and SPDR Gold Trust (GLD) dropped 0.8%.

Consumer

Funds in the consumer sector were mostly inactive after a mixed close Thursday. Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK) and Vanguard Consumer Staples ETF (VDC) were unchanged.

Consumer Discretionary Select Sector SPDR (XLY) gained 0.2%, SPDR S&P Retail (XRT) was up 0.9%, PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were flat.

The Finish Line (FINL) Friday reported earnings in line with street expectations, but slipped below revenue estimates.

The athletic shoe and apparel retailer reported fiscal Q2 ended Aug. 29 EPS of $0.57 a share, up from $0.54 in the year-earlier period, and exactly in line with the street consensus, as compiled by Capital IQ. Finish Line reported net income of $25.9 million on revenues of $483.2 million, the latter figure below the street view of $490.8 million, although up 3.5% YOY. The fiscal Q2 2015 net income figure was actually below the net of $26.2 million of a year earlier, but on a lower share count.

Finish Line traded down 2.30% pre-bell to $24.20, inside a 52-week trading range of $22.40 to $29.05.

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

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

VIX Short-Term Futures ETN Ipath (VXX): +6.4%

Direxion Daily Gold Miners Index Bull 3X Shares (NUGT): +16.6%

Market Vectors Gold Miners ETF (GDX): +5.7%

iShares MSCI Emerging Index Fund (EEM): -0.5%

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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