ETF Preview: Broad Market ETFs Mixed Pre-Bell, in Line With Stock Futures
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM and IVV were mixed pre-bell. Actively-traded PowerShares QQQ ( QQQ ) was inactive after a higher close.
U.S. stock futures are pointing to a mixed open, with oil prices volatile after Saudi Arabia said it was willing to work with non-OPEC countries to help stem the slump in oil prices. Oil was recently trading down, with the WTI Jan. contract off about 0.5% at $41.67, slipping back from a high of around $42.33 on the Saudi statement. In corporate news, Pfizer ( PFE ) and Allergan plc ( AGN ) confirmed earlier reports their boards of directors have unanimously approved a $160 billion all stock merger.
Economic data pre-market showed the October Chicago Fed National Activity Index improved to negative 0.04 From negative 0.37 but misses positive 0.08 estimates.
Power Play: Financial
Funds in the financial sector were mixed, in line with the broader market. Select Financial Sector SPDRs ( XLF ) was edging higher. Direxion Daily Financial Bull 3X shares ( FAS ) slipped 0.06%; Direxion Daily Financial Bear 3X Shares (FAZ) was flat
Shares of Capital Bank Financial (CBF) were up pre-market Monday after the company said it sealed a definitive merger agreement to acquire CommunityOne Bancorp (COB) in a deal valued at $350 million.
Under the terms of the merger, CommunityOne shareholders will be entitled to receive $14.25 per share in cash or 0.43 of a CBF share, with the total consideration consisting of 85% stock and 15% cash.
Winners and Losers
Tech funds were all inactive after a higher close. 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 unchanged. SPDR S&P International Technology Sector ETF (IPK) closed up more than 1% and was flat Monday.
Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) both finished higher and were flat.
Zayo (ZAYO), provider of bandwidth infrastructure in the U.S. and Europe, has entered into a binding agreement to buy Allstream from Canada's Manitoba Telecom Services for $465 million.
As part of this transaction, Manitoba Telecom has agreed to retain the pension obligations and related pension plan assets with respect to retirees and other former employees of Allstream under the current defined benefit pension plans. The transaction has been approved by the Manitoba Telecom board and will close in Q1 2016.
Energy funds were flat to higher, above the broader market. Dow Jones U.S. Energy Fund (IYE) was unchanged and Energy Select Sector SPDR (XLE) was up 0.3%.
Crude was down 1.2%. United States Oil Fund (USO) was up 0.08%. Natural gas futures were down 1.8%. United States Natural Gas Fund (UNG) was down 1.2%.
Gold was down 0.5% and SPDR Gold Trust (GLD) was down 0.5%. Silver was down 0.9%.
Health care funds were showing a negative bias pre-market. Health Care SPDR (XLV) was leaning lower, iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were flat. Meanwhile. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was down 0.23%.
ADRs of Israel-based Can-Fite Biopharma Ltd (CANF) have jumped 41% in Monday's pre-market session after the biotechnology announced that its liver cancer drug candidate CF102, which is currently in Phase II trials, will be expanded into treatment for non-alcoholic steatohepatitis (NASH).
"Results from our recently concluded preclinical study of CF102 in liver disease revealed compelling data," said Can-Fite CEO Pnina Fishman. "Based on these findings, we've filed a patent for CF102 in the treatment of NASH."
Consumer staples funds were in modestly higher, in line with the broader market. Consumer Staples Select Sector SPDR (XLP) was up 0.15%, iShares Dow Jones US Consumer Goods (IYK) and Vanguard Consumer Staples ETF (VDC) were flat.
Consumer discretionary and retail funds were mostly weaker, behind the broader market. Consumer Discretionary Select Sector SPDR (XLY) was leaning lower, SPDR S&P Retail (XRT) slipped 0.08%, PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were flat.
Tyson Foods (TSN), the owner of the Sara Lee and Hillshire Farm brands, posted mixed fiscal Q4 results, missing on EPS, but reporting revenue that was slightly better-than-expected.
Q4 Net income attributable to Tyson was $258 million, or $0.63 a share, compared with $137 million, or $0.35 a share a year earlier.
Adjusted net income slipped to $0.83 from $0.87, missing estimates for $0.88, according to Capital IQ.
Sales edged up to $10.5 billion from $10.1 billion in the prior year and were slightly ahead of estimates for $10.2 billion.
Active broad-market exchange-traded funds in Friday's regular session:
SPDR S&P 500 (SPY): +0.4%
iShares MSCI Emerging Index Fund (EEM): +1%
VIX Short-Term Futures ETN Ipath (VXX): -3.3%
United States Oil Fund (USO): -0.1%
3X Long Natural Gas ETN Velocityshares (UGAZ): -10.5%
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