ETF Preview: Broad Market ETFs Gain Pre-Market, Rebounding in Line With Stock Futures

Pre-Market Movers Tuesday:

GASL +9.3%

INDL +7.3%

DUST +3.3%

SCO -2%

TVIX -1.9%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were higher pre-bell. Actively-traded PowerShares QQQ ( QQQ ) gained 0.5%.

U.S. stocks are pointing to a higher open despite sharp falls in Europe, led by a rout in commodity prices. The U.S. data out Tuesday includes consumer confidence and new housing price figures.

The Conference Board's consumer confidence report for September is out at 10 a.m. ET and is expected to fall to 96.0 from 101.5 in August, which was a seven-month high. The S&P/Case-Shiller Home Price index for July is due at 9 a.m. ET and is expected to rise 0.1% on a seasonally adjusted basis after dropping 0.1% in June.

Power Play: Technology

Tech funds all closed lower Monday and are mostly inactive pre-market. Technology Select Sector SPDR ETF ( XLK ) was down 0.08%, iShares Dow Jones US Technology ETF ( IYW ), iShares S&P North American Technology ETF ( IGM ), iShares S&P North American Technology-Software Index ( IGV ) and SPDR S&P International Technology Sector ETF (IPK) were all inactive.

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

China Information Technology (CNIT), an internet service company, swung to a net loss in the first half of 2015 as revenue fell amidst efforts to reorganize the company towards cloud-based services.

The net loss attributable to the company was $6.8 million, compared with a net income of $31,000 for the first six months of 2014.

The adjusted net loss was $4.9 million, compared to an adjusted net income of $2.8 million for the year ago period. On a per share basis, the adjusted loss was $0.15 compared with income of $0.10. Analyst estimates weren't available.

Revenue decreased by 46.4% to $16.1 million.

Winners and Losers


Funds in the financial sector were higher and ahead of the broader market. Select Financial Sector SPDRs (XLF) gained 0.4%. Direxion Daily Financial Bull 3X shares (FAS) was up 1.6%; Direxion Daily Financial Bear 3X Shares (FAZ) was down 1.6%.

Shares of Phoenix Companies (PNX) skyrocketed in Tuesday's pre-market session prior to a trading halt after the insurance holding company entered into a definitive agreement to be acquired by Nassau Reinsurance Group Holdings LP for $37.50 per share in cash, representing a 188% premium over the stock's last closing price, for an aggregate purchase price of $217.2 million.

Upon consummation of the transaction, Phoenix will be a privately-held, wholly owned subsidiary of Nassau.


Energy funds were in the red, underperforming the broader market. Dow Jones U.S. Energy Fund (IYE) was flat and Energy Select Sector SPDR (XLE) was down 1.5%.

Ferrellgas Partners, L.P. (FGP), a Kansas-based propane company, reported adjusted EBITDA of $300.2 million for fiscal 2015, up 4% from the previous year of $288.1 million despite temperatures that were 8% warmer than the prior year.

For Q4, revenue was $382.5 million and earnings loss was $0.64 per share, vs. year ago levels of $399 million in revenue and a loss of $0.58 per share. Analysts polled by Capital IQ were forecasting a loss of $0.25 per share on $404.0 million in revenue.


Crude was up 1.5%; United States Oil Fund (USO) gained 1.3%. Natural gas fell% and United States Natural Gas Fund (UNG) fell 1.5%. Gold declined 0.4%, and SPDR Gold Trust (GLD) was down 0.5%.

Health Care

Health care funds were mostly higher, in line with the market. Health Care SPDR (XLV) edged higher, iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were flat after a weaker close. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was up 0.5%.

OvaScience (OVAS), developer of fertility treatments, late Monday said it doesn't expect to meet its 2015 goal of 1,000 AUGMENT treatment cycles.

The company said evolving market dynamics in the fertility space, including recent merger and acquisition activities at the key commercial IVF clinics where the AUGMENT treatment is offered, have hindered its ability to drive major volume that was anticipated in Q4.

Despite this, goals for the firm's OvaPrime and OvaTure treatments remain on track for 2015, with plans to introduce the OvaPrime treatment in patients outside the U.S. and to communicate its development strategy for the OvaTure treatment.


Funds in the consumer sector were all lower Monday and inactive so far pre-bell. Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were all flat.

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

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

SPDR S&P 500 (SPY): -2%

VIX Short-Term Futures ETN Ipath (VXX): +7.8%

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

iShares Russell 2000 ETF (IWM): -2%

Daily Inverse VIX ST ETN Velocityshares (XIV): -7.6%

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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