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IBB

ETF Preview: Broad Market ETFs Rise Pre-Market In Line With Stock Futures

Pre-Market Movers

OIL +3.3%

SCO +2.4%

DTO +1.5%

UCO -2.4%

BIS -1.9%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were higher pre-market after all closing lower Thursday. Meanwhile, actively traded PowerShares QQQ ( QQQ ) was up 0.4%.

U.S. stock futures were pointing to a higher open amid optimism the European Union will reach an accord to support the ailing Greek economy. Greek Prime Minister Alexis Tsipras has said his leftist-led coalition would present a full set of economic reforms to the EU to unlock cash to stave off bankruptcy.

Key speakers in the U.S. Friday include Atlanta Federal Reserve Bank President Dennis Lockhart, who is scheduled to speak on the economy and monetary policy at 10.20 a.m. ET, while at 11:30 a.m. ET, Chicago Fed President Charles Evans will be on a panel discussing risk management in Washington.

Power Play: Health Care

Health Care SPDR ( XLV ), iShares Dow Jones US Healthcare ( IYH ) and Vanguard Health Care ETF ( VHT ) were inactive after closing higher on Thursday. Meanwhile, Biotech ETF iShares NASDAQ Biotechnology Index ( IBB ) jumped 2.44%.

Intercept Pharmaceuticals (ICPT) was up more than 9% pre-market after the company announced new subgroup analyses from the Phase 2b FLINT trial of obeticholic acid in patients with nonalcoholic steatohepatitis. The commercial launch of obeticholic acid in the U.S. and Europe is planned in 2016. Obeticholic acid was also recently granted breakthrough therapy designation by Food and Drug Administration for the treatment of nonalcoholic steatohepatitis with liver fibrosis.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) gained 0.4% and Direxion Daily Financial Bull 3X shares (FAS) gained 1.5%, while Direxion Daily Financial Bear 3X Shares (FAZ) was inactive.

Zions Bancorporation (ZION) said Vice Chairman and Chief Financial Officer Doyle L. Arnold will retire in early May, after the filing of the company's Q1 results. He will be succeeded as CFO by Paul E. Burdiss, corporate treasurer at SunTrust Banks (STI) in Atlanta.

Technology

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 mostly weaker Thursday and all inactive pre-market. SPDR S&P International Technology Sector ETF (IPK) was flat.

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

Cheetah Mobile (CMCM) shares gained more than 4% pre-bell after the company said Q4 sales more than doubled to RMB588.9 million (US$94.9 million). The Thomson Reuters mean estimate was for $91.76 million. GAAP net income increased by 24% to RMB32.2 million (US$5.2 million). Diluted earnings per ADS increased to RMB0.23 (US$0.04) from RMB0.21 in the prior year period.

Energy

Dow Jones U.S. Energy Fund (IYE) was inactive and Energy Select Sector SPDR (XLE) was down 0.3%.

Petrobras (PBR) reported late Thursday its total oil and natural gas production was 2.8 million barrels of oil equivalent per day in February, down 1.5% relative to January. The company's oil production in Brazil was 2.1 million barrels per day last month, falling 2.1% relative to January. The slight drop in production in February was due to the planned maintenance shutdowns of two platforms in the Campos Basin and one platform in Santos Basin's Lula field. The production drop was partially offset by the start-up of seven new offshore wells in the Campos and Santos Basins.

Commodities

Crude fell 1%; United States Oil Fund (USO) slipped 0.3%. Natural gas was up 1.4% and United States Natural Gas Fund (UNG) was up 1.3%.

Gold was up 0.26%, and silver was up 0.3%. Among rare metal funds, SPDR Gold Trust (GLD) gained 0.3% and iShares Silver Trust (SLV) rose 0.7%.

Consumer

Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were in the red Thursday and inactive pre-bell.

Consumer Discretionary Select Sector SPDR (XLY) was weaker while retail funds SPDR S&P Retail (XRT) , PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) unchanged after a mixed close.

Darden Restaurants (DRI) shares rose Friday, putting the stock on track for a fresh record high after the operator of restaurants including Olive Garden and LongHorn Steakhouse reported fiscal Q3 adjusted earnings above the Street view and forecast Q4 and fiscal-year earnings above analysts' estimates. Shares of DRI were up 5.5% in recent pre-market trading at $68.45, within a 52-week range of $43.56 to $65.75; the high end of that range, also an all-time high was reached Thursday.

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

SPDR S&P 500 (SPY): -0.6%

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

SPDR Select Sector Fund - Financial (XLF): -1.2%

iPath S&P 500 VIX Short Term Futures ETN (VXX): +1.4%

United States Oil Fund (USO): -4.1%

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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