ETF Preview: Broad Market Funds Head Lower In Line With Futures As Jobs Data Comes in As Expected

Pre-Market Movers Thursday:

BZQ +12.2%

RUSL +3.6%

TVIX +2.7%

EWZ -5.9%

VIIX -2.8%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM were edging lower, while IVV was firmer. Actively-traded PowerShares QQQ ( QQQ ) was also inching lower.

U.S. stock futures are pointing to a lower open after in line jobless claims data. Claims for unemployment insurance fell by 6,000 to 275,000 in the week ended Sept. 5, from a revised 281,000 in the prior period, a report from the Labor Department showed Thursday.

The employment situation is one of the key factors that the Federal Open Market Committee will consider when it decides whether to raise the interest rate at its Sept. 16-17 meeting.

Power Play: Health Care

Health care funds were mostly unchanged pre-bell after closing lower. Health Care SPDR ( XLV ), iShares Dow Jones US Healthcare ( IYH ) and Vanguard Health Care ETF ( VHT ) were weaker. Biotech ETF iShares NASDAQ Biotechnology Index ( IBB ) was up 0.22%.

La Jolla Pharmaceutical (LJPC), a biopharmaceutical company, said Thursday that it has priced its underwritten offering of 2.5 million shares of common stock at $38 per share, or a 10% discount from the stock's previous close, resulting in total gross proceeds of $96.9 million.

Shares were down 8.5% in pre-market trading , near the high end of the 52-week range of $7.20 - $44.99.

Winners and Losers


Funds in the financial sector were modestly higher, outperforming the broader market. Select Financial Sector SPDRs (XLF) was up 1.3%. Direxion Daily Financial Bull 3X shares (FAS) slipped 0.05%; Direxion Daily Financial Bear 3X Shares (FAZ) was down 0.4%.

Wheeler Real Estate Investment Trust (WHLR) said Thursday that it has acquired the Grove Park Shopping Center in Orangeburg, South Carolina for approximately $6.6 million.

The 106,557-square-foot grocery-anchored retail center is currently 90% leased.


Tech funds ended lower Wednesday, in line with the broader market and are mostly inactive pre-bell. Technology Select Sector SPDR ETF (XLK), iShares Dow Jones US Technology ETF (IYW) and iShares S&P North American Technology ETF (IGM) were inactive, while iShares S&P North American Technology-Software Index (IGV) was up 1%. SPDR S&P International Technology Sector ETF (IPK) was flat.

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

Taiwan Semiconductor Manufacturing (TSM) reported early Thursday that revenues in August fell 3.2% year-over-year.

The Taiwan-based contract chip maker said August sales totaled NT$67.04 billion ($2.07 billion), down from NT$69.3 billion a year earlier and also below NT$81.0 billion reported for July 2015.

Sales in the eight months through August totaled NT$575.47 billion, up 23.6% relative to the same period in 2014.


Energy funds were mixed. Dow Jones U.S. Energy Fund (IYE) was edging into the green and Energy Select Sector SPDR (XLE) was down 0.05%.

Royale Energy (ROYL) on Thursday said it has appointed Jonathan Gregory as its new chief executive officer. Previously, Stephen Hosmer and Donald Hosmer held the positions of co-president and co-CEO of the natural gas company.

Donald Hosmer will retain his position as president of business development, and Stephen Hosmer remains as chief financial officer and president.


Crude was up 0.2%; United States Oil Fund (USO) unchanged after closing sharply lower. Natural gas was up 1.2% and United States Natural Gas Fund (UNG) was up 1.3%. Gold rose 0.4%, and SPDR Gold Trust (GLD) was edging into the red.


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

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

Lululemon Athletica (LULU) turned negative in Thursday's pre-market session, wiping out initial gains as soft guidance overshadowed robust results for Q2 2015 that were driven by the strong performance of the athletic apparel retailer's store and e-commerce channels.

The company said it expects Q3 to result in diluted EPS of $0.35 to $0.37 and revenues of $477 million to $482 million. The Street view is $0.43 per share in earnings on revenue of $478 million.

Guidance for 2015 is $1.87 to $1.92 for diluted EPS and $2.025 billion to $2.055 billion for revenues. Analysts are expecting earnings of $1.93 per share on revenue of $2.03 billion.

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

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

VIX Short-Term Futures ETN Ipath (VXX): -1.6%

iShares MSCI Japan Index Fund (EWJ): +0.7%

Direxion Daily Gold Miners Index Bull 3X Shares (NUGT): -5.5%

iShares MSCI Emerging Index Fund (EEM): -0.9%

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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