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ETF Preview: Broad Market ETFs Mostly Higher in Line With Futures, Energy Underperforms

Pre-Market Movers

BZQ +6.99%

DUST +3.5%

SCO +3.2%

NUGT -3.7%

EWZ -3.5%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM were higher, though IVV edged lower. Actively-traded PowerShares QQQ ( QQQ ) was up 0.12%.

U.S. stock futures are pointing to a higher open Wednesday, ahead of a raft of economic data. At 8.30 a.m. ET durable goods orders for October are expected to rise to 1.5% after a 1.2% drop in September.

The October personal income and spending data are expected to show income rose 0.4%from 0.1% in September while spending is seen up 0.3% from 0.1%.

The University of Michigan's final index on consumer sentiment for November is due at 10.00 a.m., as is a report on single-family home sales for October.

The markets will be closed on Thursday for the Thanksgiving holiday and will only open in the morning on Friday.

Power Play: Energy

Energy funds had a weaker bias underperforming the broader market. Dow Jones U.S. Energy Fund ( IYE ) was flat and Energy Select Sector SPDR ( XLE ) fell 0.6%.

Abengoa, S.A ( ABGB ), a Spanish multinational in energy, telecommunications, transportation, Wednesday sank 41.5% in pre-bell trading to $2.72 on reports that a financial rescue plan has not jelled. The previous 52-week trading was $3.91 to $19.25.

Abengoa confirmed it has received notice from Gonvarri Corporacin that a framework agreement is terminated, and Gonvarri will not invest $371 million into Abengoa, known for its renewable energy projects.

Winners and Losers

Financial

Funds in the financial sector were in negative territory, underperforming the broader market. Select Financial Sector SPDRs ( XLF ) was down 0.04%. Direxion Daily Financial Bull 3X shares (FAS) slipped 0.2%; Direxion Daily Financial Bear 3X Shares (FAZ) was flat.

Gramercy Property Trust (GPT), a real estate investment trust, said Wednesday that it closed on the acquisition of two industrial buildings totaling 222,100 square feet in Norcross, Georgia for a total consideration of $12.5 million in cash.

The acquired assets consist of a 142,000-square foot warehouse leased to a producer of engines, and a 80,000-square foot warehouse leased to a distributor of tools, equipment and machinery to the stone fabrication industry.

Technology

Tech funds were mixed. Technology Select Sector SPDR ETF (XLK) was leaning into the red, iShares Dow Jones US Technology ETF (IYW) edged higher, iShares S&P North American Technology ETF (IGM) and iShares S&P North American Technology-Software Index (IGV) were flat. Meanwhile SPDR S&P International Technology Sector ETF (IPK) was also unchanged.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were inactive after a higher close Tuesday.

58.com (WUBA) shares were slightly higher in recent pre-market trade after the online marketplace operator said it plans to spin off its consumer-to-consumer used car trading platform Guazi.com Inc.

The company said it is divesting a controlling stake in Guazi to its co-CEO Mark Haoyong Yang in exchange for a cash injection. After this, 58.com will hold a 46% stake in Guazi while Yang will step down as co-CEO and assume the role of chairman and CEO of Guazi.com.

Commodities

Crude fell 1.68%%. United States Oil Fund (USO) fell 1.8%. Natural gas futures were down 1.1%. United States Natural Gas Fund (UNG) was off 0.7%. Gold was down 0.1% and SPDR Gold Trust (GLD) slipped 0.3%. Silver was up 1.1% and iShares Silver Trust (SLV) was down 0.6%.

Health Care

Health care funds were mostly inactive pre-bell. Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were flat after closing higher. Meanwhile, Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was also unchanged after ending in the red Tuesday.

BioMarin (BMRN) is down more than 3% in pre-market trade, coming off a halt started early Tuesday.

On Tuesday, a panel of outside advisers to the U.S. Food and Drug Administration indicated that efficacy data from BioMarin on its experimental drug for treating a muscle wastage disorder was not persuasive enough.

Consumer

Consumer staples funds had a firmer bias, but were behind the broader market. Consumer Staples Select Sector SPDR (XLP) nudged higher, iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were unchanged after a higher close.

Consumer discretionary and retail funds were also mostly inactive. Consumer Discretionary Select Sector SPDR (XLY) was leaning into the green, SPDR S&P Retail (XRT) was flat, PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were flat.

CST Brands (CST), a distributor of motor fuel and convenience store merchandise, said Wednesday that it has entered into a definitive agreement to acquire the Flash Foods store network of convenience stores in Georgia and Florida from the Jones Company and its affiliates for a purchase price of $425 million.

The acquisition includes 164 Flash Foods convenience stores, 21 quick service restaurants, a land bank of 13 real estate sites, a merchandise distribution company and a 90,000-square foot distribution facility in Georgia, and a fuel supply company.

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

SPDR S&P 500 (SPY): -0.1%

iShares MSCI Emerging Index Fund (EEM): +0.2%

VIX Short-Term Futures ETN Ipath (VXX): +1.8%

3X Long Crude ETN Velocityshares (UWTI): +9.2%

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.4%

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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