Markets
IYW

ETF Preview: Broad Market ETFs Gain In Line With Futures Ahead of Economic Data

Pre-market movers:

EDC +2.2%

NUGT +2.0%

TVIX -3%

RUSL -2.2%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were all higher pre-market. Actively-traded PowerShares QQQ ( QQQ ) was up 0.3%.

U.S. stock futures are pointing to a higher open, despite worse-than-expected Chinese factory data that showed the world's second-largest economy is still straining to gain traction. In the U.S., investors will be looking towards a slew of data releases later Tuesday for further signs as to whether the Federal Reserve will raise interest rates at its final meeting of the year later this month. Reports include October construction spending, which is expected to gain 0.6%, the November ISM Manufacturing Index is forecast to edge up to 50.5 and the November PMI Manufacturing is expected to be unchanged from the preliminary release at 52.6.

Power Play: Technology

Tech funds were mostly inactive, though with a negative bias. Technology Select Sector SPDR ETF ( XLK ) was edging lower, 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 after a lower close.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were flat after a higher close.

Giga-tronics (GIGA) shares more than doubled in value in recent pre-market trade after saying it has struck a strategic software licensing deal with Lockheed Martin (LMT).

The maker of instruments, subsystems and microwave components that have applications in defense electronics, aeronautics and wireless telecommunications said it will develop and license threat simulation software as a commercial product that brings advanced threat environment simulation capability to its new Advanced Signal Generator Hardware Platform.

Winners and Losers

Financial

Funds in the financial sector were mixed and lagging the broader market. Select Financial Sector SPDRs (XLF) slipped 0.1%. Direxion Daily Financial Bull 3X shares (FAS) was leaning higher; Direxion Daily Financial Bear 3X Shares (FAZ) was down 0.6%.

Bank of Montreal (BMO) Tuesday announced better-than-expected results for Q4 2015, prompting the Canadian lender to increase dividends.

Adjusted earnings were C$1.26 billion ($945 million), or C$1.90 per share, ahead of last year's C$1.11 billion, or C$1.63 per share, and the Capital IQ consensus of C$1.74. The improvement reflects growth in the Canadian personal and commercial banking, U.S. personal and commercial banking, wealth management, and BMO Capital Markets segments.

Energy

Energy funds were also mixed pre-market. Dow Jones U.S. Energy Fund (IYE) was down 0.3% and Energy Select Sector SPDR (XLE) was up 0.3%.

Anadarko Petroleum (APC) was ordered by a federal judge Monday to pay $159.5 million in fines for its role in the 2010 Deepwater Horizon disaster that caused an oil spill in the Gulf of Mexico that lasted nearly three months.

The amount is far less than the amount sought by the government. BP has already agreed to pay $5.5 billion over 15 years as part of a U.S. Department of Justice settlement.

Commodities

Crude was up 0.1%. United States Oil Fund (USO) gained 0.15%. Natural gas futures gained 0.2%. United States Natural Gas Fund (UNG) was down 0.4%. Gold was down 1.2% and SPDR Gold Trust (GLD) rose 0.2%. Silver gained 0.5% and iShares Silver Trust (SLV) gained 0.8%.

Health Care

Health care funds were mixed, though generally lagging the broader market. Health Care SPDR (XLV) was leaning lower, iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were inactive after a lower close. Meanwhile, Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 0.4%.

Henry Schein (HSIC) a provider of health care products and services to office-based dental, animal health and medical practitioners, said its board has agreed to boost its share buyback plan by $400 million.

The program is in addition to the $300 million repurchase program announced in December 2014, which as of Tuesday had approximately $25 million remaining.

The new buyback represents about 3% of the total outstanding stock of 83 million shares.

Consumer

Consumer staples funds were underperforming the broader market. Consumer Staples Select Sector SPDR (XLP) was weaker, iShares Dow Jones US Consumer Goods (IYK) was inactive, and Vanguard Consumer Staples ETF (VDC) were flat after a lower close.

Consumer discretionary and retail funds were also lagging the broader market. Consumer Discretionary Select Sector SPDR (XLY) was edging lower, SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were all flat.

Starwood Hotels & Resorts Worldwide (HOT) Friday reported it agreed with Sunmarina Operations, a part of Ishin Hotels, to debut its Sheraton brand in Okinawa, Japan.

Starwood said the existing 200-room Sunmarina Resort, on Sunmarina Beach, will be re-branded for a mid-2016 opening, with an additional 45 rooms slated for early 2017 in a new tower.

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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