ETF Preview: Broad Market ETFs Gain In Line With Futures

Pre-Market Movers Friday:

DUST +4.7%

UPRO +3.5%

BIB +3%

SDOW -5.2%

NUGT -4.6%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were all rebounding pre-market with gains of about 1%. Actively-traded PowerShares QQQ ( QQQ ) was up 1.1%.

U.S. stocks futures are pointing to a higher open after steep selloffs this week took the markets into bear territory. Crude oil has staged a rebound and is up more than 4% in early trading, while European data produced no nasty surprises. Gross domestic product in the 19 countries sharing the euro rose 0.3 percent quarter-on-quarter in the last three months of last year, the same as in the July-September period and in line with expectations.

In the U.S., data out Friday is likely to show imports fell 1.4% from a 1.2% drop in December while exports are seen dropping 0.6%. Retail sales data is expected to show a 0.2% headline increase, while the ex-autos rises 0.1%.

Power Play: Consumer

Consumer Staples Select Sector SPDR ( XLP ) had a stronger bias, iShares Dow Jones US Consumer Goods ( IYK ), and Vanguard Consumer Staples ETF ( VDC ) were unchanged after a lower close.

Consumer Discretionary Select Sector SPDR ( XLY ) was edging higher, SPDR S&P Retail (XRT) was down 0.1%, PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were inactive.

Radio broadcasting company Beasley Broadcast (BBGI) Friday said earnings almost doubled in Q4 2015 as a result of a sizable increase in revenues.

Net income was $3.3 million, or $0.14 per diluted share, compared to $1.8 million, or $0.08 per diluted share, for the same period last year. Revenues totaled $28.4 million, up sharply from last year's $18.6 million.

Looking ahead, the company said: "We remain focused on operating our station clusters to match or exceed their market's revenue performance. Our focus on localism supports our solid ratings in most markets, and in 2016 we look forward to benefiting from the programming, personnel, cost-efficiency and operating changes put in place over the last year as well as the return of political advertising."

Winners and Losers


Select Financial Sector SPDRs (XLF) gained 1.7%. Direxion Daily Financial Bull 3X shares (FAS) jumped 3.4%; Direxion Daily Financial Bear 3X Shares (FAZ) declined 1%.

Brookfield Asset Management (BAM, BAM.TO), an alternative asset manager focused on property, renewable energy, infrastructure and private equity, reported Q4 revenues that increased over the prior year and topped the Street projection.

The company reported Q4 funds from operations of 981 million, or $0.97 per share, up from $535 million in Q4 2015. On a GAAP basis the company reported net income of $1.19 billion, or $0.66 per share, down from $1.70 billion, or $1.06 per share, in the prior year period. Analysts expected adjusted EPS of $0.44 for the quarter.

Total revenues of $5.54 billion were up from $4.69 billion in Q4 2014 and exceeded analyst projections of $4.77 billion.


Technology Select Sector SPDR ETF (XLK) gained 1%, 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 unchanged after closing down. SPDR S&P International Technology Sector ETF (IPK) was also flat.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were inactive.

USA Technologies (USAT) says Q2 sales rose 44% to $18.5 million year over year, topping the CapIQ mean for $16.91 million.

Non-GAAP EPS were $0.02, a penny above estimates.

For full fiscal year 2016, management expects to add more than 75,000 net new connections, bringing total connections on the service to more than 400,000 and expects total revenue to be between $69 million and $71 million. Forecasts are for sales of $71.45 million.


Dow Jones U.S. Energy Fund (IYE) was unchanged and Energy Select Sector SPDR (XLE) was 1.1% higher.

Yuma Energy (YUMA) says it will merge with privately held Davis Petroleum Acquisition Corp in an all-stock deal.

Yuma will reincorporate in Delaware, implement a one for ten reverse split of its common stock, and convert each share of its existing Series A preferred stock into 35 shares of common stock prior to giving effect for the reverse split (3.5 shares post reverse split). Following these actions, Yuma will issue additional shares of common stock in an amount sufficient to result in approximately 61.1% of the common stock being owned by the current common stockholders of Davis. In addition, Yuma will issue approximately 3.3 million shares of a new Series D preferred stock to existing Davis preferred stockholders, which is estimated to have a conversion price of approximately $5.70 per share, after giving effect for the reverse split.


Crude rose 4.6%. United States Oil Fund (USO) rose 0.6%. Natural gas slipped 0.2%. United States Natural Gas Fund (UNG) was down 0.2%. Gold was down 0.7% and SPDR Gold Trust (GLD) fell 0.5%. Silver slipped 0.5% and iShares Silver Trust (SLV) was 0.13% lower.

Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were unchanged. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) gained 1.2%.

LifePoint Hospitals (LPNT) says Q4 sales were $1.3707 billion, up 8.5% from the year-ago period but below the CapIQ mean for $1.38566 billion.

Adjusted EPS were $1.11, above estimates for $1.05.

2016 sales are seen between $6.45 billion and $6.55 billion, more than forecasts for $6.01 billion. EPS are seen between $3.65 and $3.91, below estimates for $4.27 normalized and $4.26 GAAP.

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

SPDR S&P 500 (SPY): 1.9%

VIX Short-Term Futures ETN Ipath (VXX): +8.3%

Market Vectors Gold Miners ETF (GDX): +7.8%

SPDR Select Sector Fund - Financial (XLF): -3.2%

iShares MSCI Emerging Index Fund (EEM): -2%

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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