ETF Preview: Broad Market ETFs Gain in Line With Stock Futures: Emerging Markets Among Top Performers

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

SPDR S&P 500 ( SPY ): -0.23%

Select Financial Sector SPDRs ( XLF ): -0.20%

Consumer Staples Select Sector SPDR ( XLP ): -0.50%

iShares Russell 2000 Index ( IWM ): -0.85%

iShares MSCI Emerging Markets Index ( EEM ): +0.35%

Pre-market Movers

SCIF +1.7%

NUGT +1.54%

EWY +1.1%

RUSL -3.2%

TZA -1.58%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV higher pre-market after closing mixed on Monday. Actively traded PowerShares QQQ (QQQ) was up 0.25%. Emerging markets funds were among the best-performers early, with the Market Vectors India Small Cap (SCIF) up 1.7% and the iShares MSCI South Korea Index (EWY) up 1.1%.

U.S. stock futures are pointing to a higher open in line with global markets with corporate earnings continuing to provide the main investor focus. Data out Tuesday includes the S&P/Case Shiller 20-city home price index at 09:00 a.m. E.T. It is expected to have risen 0.4% in May, up from a 0.2% increase seen in April. The consensus range is from a decline of 0.5% to a gain of 1.4%, according to data compiled by Econoday.

At 10:00 a.m., the Conference Board's consumer confidence index is expected to have edged higher to 85.5 in July from 85.2 in June within the consensus range from 83.5 to 88.5.

Power Play: Technology

Technology Select Sector SPDR ETF (XLK) was up 0.6% pre-bell, iShares Dow Jones US Technology ETF (IYW) gained 0.55%, 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.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were unchanged after closing mixed Monday.

Windstream Holdings (WIN) is higher Tuesday morning after it said it plans to spin off certain telecommunications network assets into an independent, publicly traded real estate investment trust (REIT).

The transaction will enable Windstream to accelerate network investments, provide enhanced services to customers and maximize shareholder value, according to a statement. The transaction will allow the REIT, which will own Windstream's existing fiber and copper network and other fixed real estate assets, to expand its network and diversify its assets through acquisitions. The company's board of directors approved the plan following the receipt of a favorable private letter ruling from the Internal Revenue Service.

Windstream anticipates that the REIT will raise approximately $3.5 billion in new debt, which will be used to repay existing Windstream debt to effect the transaction.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) rose 0.13%. Direxion Daily Financial Bull 3X shares (FAS) rose 0.2% while its bearish counterpart, FAZ, was down 0.9%.

Independent Bank Group (IBTX), which provides commercial banking services, reported Q2 earnings that top the Street view. Core earnings were $9.0 million, or $0.57 per diluted share, for the quarter ended June 30, 2014 compared to $4.1 million, or $0.34 per diluted share a year prior.

The Street expected earnings of $0.56 per share, according to Capital IQ estimates. The bank reported $35.0 million in interest income whereas, if comparable, the Street expected revenue of $34.7 million


Dow Jones U.S. Energy Fund (IYE) inactive pre-market; Energy Select Sector SPDR (XLE) was up 0.4%.

Arch Coal (ACI) shares edged higher pre-market Tuesday after the coal producer reported a narrower-than-expected Q2 net loss, even as revenue came in slightly below expectations and the company cut its 2014 targets for sales volume and capital spending.

ACI was up 1.4% at $2.90 in recent pre-market trading , in a 52-week range of $2.82 to $5.37. The stock had just hit the low end of that range in Monday's session.

The company reported a net loss for the latest quarter of $96.9 million, or $0.46 per diluted share, compared with a prior-year net loss of $72.2 million, or $0.34 per diluted share. Adjusted for one-time items, the prior-year loss was $0.29 per share. Analysts were expecting a loss of $0.49 per share for the latest quarter.


Crude was down 0.45%; United States Oil Fund (USO) was down 0.5%. Natural gas was up 0.6% and United States Natural Gas Fund (UNG) gained 0.63%.

Gold was up 0.18%, and silver was up 0.33%. Among rare metal funds, SPDR Gold Trust (GLD) rose 0.13% and iShares Silver Trust (SLV) was up 0.25%.


Consumer Staples Select Sector SPDR ( XLP ), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were all inactive pre-market and weaker on Monday.

Wynn Resorts (WYNN) reported Q2 revenue of $1.412 billion, below the analyst consensus of $1.434 billion on Capital IQ. Adjusted EPS was $2.11, ahead of expectations of $1.94 per share. The company noted in its Macau operations, Q2 net revenues were $960.6 million, a 3.2% increase from the $930.9 million generated in the second quarter of 2013. Adjusted property EBITDA in the second quarter of 2014 rose to $307.0 million, up 5.8% from $290.1 million in the second quarter of 2013.

Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were weaker Monday and unchanged pre-market. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was also flat.

Pfizer (PFE) shares edged up in Tuesday's pre-market session, after the pharmaceutical giant reported Q2 adjusted earnings and revenue above analysts' expectations while reiterating its forecast for 2014 adjusted earnings and narrowing its revenue forecast.

Net income fell to $2.91 million, or $0.45 per share, from $14.1 billion, or $1.98 per share, a year earlier. Adjusted for one-time items, its earnings were $0.58 per share in the latest quarter, up from $0.56 per share a year earlier and above the $0.57 per share expected on average by analysts polled by Capital IQ. Revenue slipped 1.5% to $12.77 billion, topping analysts' mean estimate of $12.5 billion.

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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