Markets
QQQ

ETF Preview: Broad Market ETFs Gain in Line With Futures: China Funds Outperform on Stimulus Hopes

Pre-Market Movers

YANG -4.4%

FXP -2.9%

EWY -2%

YINN +4%

INDL +3.5%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were moving higher pre-market. Actively traded PowerShares QQQ ( QQQ ) increased 0.25%. China funds were among the best performing pre-market, with the Direxion Daily China Bull ( YINN ), up 4%. China reported an unexpected drop in exports to 6.4% in April, while imports dropped a larger-than-expected 16.2% raising hopes for fresh stimulus from Beijing.

U.S. stock futures are pointing to a higher open following on from gains in Europe, where the U.K.'s benchmark FTSE Index soared on the back of an election victory by Conservative Party, which is seen as pro-business. Sterling also gained to a two-month high. In the U.S., key jobs data out Friday missed the mark. April private payrolls increased by 213,000 compared with estimates for 223,000, while the unemployment rate declined as expected to 5.4%.

Power Play: Consumer

Consumer Staples Select Sector SPDR ( XLP ) was down 0.12%, iShares Dow Jones US Consumer Goods ( IYK ), and Vanguard Consumer Staples ETF ( VDC ) were inactive and closed higher.

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

Crocs (CROX) posted sharply lower adjusted Q1 net income and swung to a loss on a GAAP basis, as revenue at the maker of colourful plastic shoes fell in line with expectations.

Non-GAAP adjusted net income fell to $4.7 million in the quarter versus $14.5 million in the first quarter of 2014.

The company swung to a GAAP net loss of $6.0 million or $0.08 per share, compared with net income of $6.4 million or $0.06 per diluted share in the same quarter of the prior year.

Revenue fell to $262.2 million from $312.4 million, about in line with the $262.5 million analysts had been looking for.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) and Direxion Daily Financial Bull 3X shares (FAS) were up 0.2% and 0.75% respectively, while Direxion Daily Financial Bear 3X Shares (FAZ) was unchanged.

Newcastle Investment Corp (NCT), a real estate investment trust, posted Q1 earnings that beat expectations, while operating revenue declined.

Adjusted funds from operations were $7 million, or $0.11 per share. Analysts were expecting $0.10 if comparable, according to Capital IQ. Core earnings for the quarter were $0.12 per share, two cents better than the Street view.

Total operating revenue fell to $60.8 million from $62.6 million a year ago. Net interest income fell to $10.35 million from $24.3 million a year earlier.

Technology

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 inactive after all closing higher. SPDR S&P International Technology Sector ETF (IPK) flat.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were also inactive after a stronger session Thursday.

AOL (AOL) was higher in pre-market trade Friday after comfortably beating Q1 estimates.

Shares were up 2% at $40.22 in recent trade. The stock has a 52-week range of $32.31 - $49.86.

The media and technology company reported Q1 revenue of $625.1 million, up from $583.3 million in the same period last year and ahead of the $594.0 million Capital IQ consensus. Net income for the quarter came in at $7.0 million, down from $9.3 million in Q1 2014. EPS were $0.09, versus $0.11 in the year-ago quarter. Adjusting for certain items, Q1 2015 EPS were $0.34, versus $0.35 last year. This beat the $0.32 Capital IQ mean estimate.

Industrial

Industrial ETFs iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ), Vanguard Industrials (VIS) and Select Sector SPDR-Industrial (XLI) were higher.

Energy

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) were unchanged.

Glori Energy (GLRI) reported a Q1 loss on wider than the Street view Friday while revenue results fell short.

Net loss for the first quarter of 2015 was $3.0 million, or a net loss of $0.09 per common share, which included a gain on commodity derivatives of approximately $1.4 million, of which $1.1 million was received as a cash settlement. Excluding the impact of the unrealized gain on commodity derivatives, adjusted net loss for the first quarter of 2015 was $3.2 million or an adjusted net loss of $0.10 per common share. The Street expected a loss of $0.09 per share and revenue of $3.4 million.

Q1 revenues grew $1.6 million from prior-year quarter to $2.6 million, up 156% but short of the $3.4 million the Street expected, according to Capital IQ

Commodities

Crude was up 0.7%; United States Oil Fund (USO) was up 1.2%. Natural gas was up 1.3% and United States Natural Gas Fund (UNG) was up 1%.

Gold was up 0.23%, and silver was down 0.6%. Among rare metal funds, SPDR Gold Trust (GLD) gained 0.4% and iShares Silver Trust (SLV) rose 0.3%.

Health Care

Health Care SPDR (XLV) rose 0.58% pre-bell, iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were flat. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 0.3%.

Aldeyra Therapeutics (ALDX) shares were lower over 6% in recent pre-market trade after the biotechnology company priced the follow-on offering of 2.7 million shares at $7.50 each, a 9.2% discount to Thursday's closing price.

Aldeyra said it has granted underwriters a 30-day option to purchase up to an additional 405,000 shares of common stock.

ALDX is trading near the mid-point of the 52-week range between $3.00 and $13.50.

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

SPDR S&P 500 (SPY): +0.5%

VelocityShares 3X Long Crude ETN (UWTI): -4.1%

United States Oil Fund (USO): -1.4%

iPath S&P 500 VIX Short Term Futures ETN (VXX): -1%

ProShares Trust Ultra VIX Short Term Futures ETF (UVXY): -1.8%

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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