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ETF Preview: Broad Market ETFs Gain in Line With Futures: Oil Continues to Slide

Pre-Market Movers:

NUGT +4.9%

PEK +3.3%

XIV +2.6%

TVIX -5.9%

YANG -3%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were all higher. Actively-traded PowerShares QQQ ( QQQ ) was up 0.7%.

U.S. futures are pointing to a higher open Monday, despite an ongoing slide in global oil prices . Crude oil slid a further 1.4% taking the WTI January contract to $34.23 a barrel on concern over a global supply glut.

In economic news, the November Chicago Fed National Activity index is due Monday at 8:30 a.m. ET and is expected to show a headline of +0.15 from -0.04 previously.

Power Play: Energy

Energy funds were lower, underperforming the broader market. Dow Jones U.S. Energy Fund ( IYE ) was flat and Energy Select Sector SPDR ( XLE ) was up 0.4%.

Emerson Electric Company ( EMR ) slips more than 1% in pre-market trade after the company says in a SEC filing trailing three-month orders decreased 13% as monthly orders continue to reflect low oil prices, reduced levels of industrial capital spending, demand weakness in emerging markets, and strength of the U.S. dollar, which deducted 3 percentage points through currency translation.

Underlying orders were down 10%, reflecting slow market conditions in all segments, consistent with the range of underlying orders over the prior 8 months.

Winners and Losers

Financial

Funds in the financial sector were higher and outperforming the broader market. Select Financial Sector SPDRs ( XLF ) was up 0.6%. Direxion Daily Financial Bull 3X shares (FAS) gained 2%; Direxion Daily Financial Bear 3X Shares (FAZ) was inactive.

Opus Bank (OPB), a California-chartered commercial bank, has joined the S&P Regional Banks Select Industry Index and the S&P Total Market Index. The change is effective December 18.

The Regional Banks Select Industry Index captures 90 stocks in the S&P Total Market Index that are classified in the Global Industry Classification Standard regional banks sub-industry.

Technology

Technology Select Sector SPDR ETF (XLK) was leaning higher, 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 a lower close Friday. Meanwhile, 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 unchanged.

Shares of AU Optronics (AUO), a Taiwan-based maker of thin-film displays for computers and mobile devices, traded up pre-bell following reports of a possible tie-in with Apple (AAPL).

AU traded up 6.23% pre-bell to $2.73, inside a 52-week range of $2.38 to $6.03 a share.

Apple has opened a production laboratory in northern Taiwan to work on thinner display screens, Bloomberg reported. AUO has worked with Apple in the past, on thin-screens for phones.

Commodities

Crude was down 1.3%. United States Oil Fund (USO) fell 0.7%. Natural gas was up 1.2%. United States Natural Gas Fund (UNG) was up 0.6%. Gold was up 1.5% and SPDR Gold Trust (GLD) gained 0.4%. Silver was up 3.1% and iShares Silver Trust (SLV) was up 0.3%.

Consumer

Consumer Staples Select Sector SPDR (XLP) is edging higher, iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were flat after closing lower Friday.

Consumer Discretionary Select Sector SPDR (XLY) were up 0.14%, SPDR S&P Retail (XRT) rose 0.3%, PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were unchanged.

Garnero Group Acquisition Company (GGAC), a special investment vehicle formed to make an acquisition, has amended the terms of its proposed merger with Brazilian retailer Grupo Colombo to take into account changes in foreign exchange rates.

GGAC will now issue 4 million shares to Grupo Colombo's shareholders down from 6 million originally, while a cash contribution to the group and an obligation to raise $100 million through a private placement of new Garnero Group shares have been eliminated.

Health Care

Health Care SPDR (XLV) gained 0.5%, iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were flat after a lower close. Meanwhile, Biotech ETF iShares NASDAQ Biotechnology Index (IBB) rose 0.3%.

Lion Biotechnologies (LBIO) jumps more than 5% after the company says it has entered into a collaboration to conduct clinical and preclinical research in immuno-oncology with MedImmune.

Lion will fund and conduct two Phase 2a clinical trials combining MedImmune's investigational PD-L1 inhibitor durvalumab with TIL for the treatment of patients with metastatic melanoma, and head and neck cancer. MedImmune will supply durvalumab for the clinical trials. The purpose of the studies is to establish a dosing regimen for this combination therapy and assess its safety and efficacy.

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

SPDR S&P 500 (SPY): -1.2%

VIX Short-Term Futures ETN Ipath (VXX): +6.3%

SPDR Select Sector Fund - Financial ( XLF ): -2.6%

iShares MSCI Japan Index Fund (EWJ): -1.3%

iShares MSCI Emerging Index Fund (EEM): -0.1%

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 MTNewswires.com. 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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