ETF Preview: Broad Market Funds Mixed, India-Focused Funds Decline on Oil Price Concern

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

SPDR S&P 500 ( SPY ): -0.38%

iShares Russell 2000 Index ( IWM ): -0.40%

Market Vectors Gold Miners ETF ( GDX ): +1.88%

iShares MSCI Emerging Markets Index ( EEM ): -0.26%

Direxion Daily Small Cap Bear 3X Shares ( TZA ): +1.26%

Pre-Market Movers

AUSE -9.7%

INDL -4.5%

EPI -2.6%

VYM +2.8%

JO +1.7%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were mixed pre-market after closing lower on Thursday. Likewise, actively traded PowerShares QQQ (QQQ) is up 0.2%. India-focused funds were among the biggest decliners after stocks in the country dropped the most in four months on concern about the impact of rising oil prices . The country needs to import about 80% of its oil needs.

U.S. stock futures are little changed with the main indices on track to close the week lower, despite having touched new records earlier in the week. Unrest in Iraq has triggered concern about global oil supplies, while data out Friday was weaker-than-expected. Wholesale prices fell 0.2% against an expected gain of 0.1%.

Power Play: Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were unchanged after closing lower. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) fell 0.2% after hours.

In corporate news, Neptune Technologies & Bioresources (NEPT, NTB.TO) shares were higher by more than 4% in recent pre-market trade after saying its Sherbrooke production facility in Quebec has received all required operating permits and that production will resume. The plant is now also equipped to double capacity.

Winners and Losers


Select Financial Sector SPDRs (XLF) was flat Direxion Daily Financial Bull 3X shares (FAS) was up 0.3%. Its bearish counterpart, FAZ, was leaning lower.

Among sector news, Liberty Property Trust (LPT) said it has acquired five industrial buildings in Durham, North Carolina, for $44 million. The buildings are located within five miles of the Raleigh-Durham International Airport and are 100% occupied. LPT closed lower 0.7% on Thursday, in the upper half of the 52-week range between $31.96 and $40.38. It was inactive in recent pre-market trade.


Technology Select Sector SPDR ETF (XLK) is unchanged after reaching a new 13-year high; other tech funds iShares Dow Jones US Technology ETF (IYW), iShares S&P North American Technology-Software Index (IGV) and iShares S&P North American Technology ETF (IGM) are flat after ending lower Thursday. SPDR S&P International Technology Sector ETF (IPK) is also unchanged.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) are flat. SOXX was up 0.4% pre-bell. In corporate news, analysts at Northland Securities have initiated coverage of Arista Networks Inc. (ANET), a supplier of cloud networking solutions, with a market perform rating. The firm set its price target on the stock at $70 a share. In the pre-market session, shares of ANET are up 3.3% to $68.15, move above its 52-week regular session trading range of $55 - $67.83.


Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) closed higher and continued to gain after hours. They are both near record highs. So far they are inactive.

Among stocks, Apollo Global Management (APO) is in talks to buy Encana's (ECA, ECA.TO) Bighorn properties in Alberta, Canada, for as much as $1.8 billion, the Wall Street Journal said, citing unnamed sources. The talks are exclusive, a deal hasn't yet been reached and the talks could still collapse, the report said. The Bighorn properties primarily produce natural gas.


Crude was up 0.3%; United States Oil Fund (USO) was up 0.2%. Natural gas was up 0.2% and United States Natural Gas Fund (UNG) was up 0.4%.

Gold was edging into the red and silver was up 0.09%. Among rare metal funds, SPDR Gold Trust (GLD) was down 0.11% and iShares Silver Trust (SLV) was up 0.11%.


Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) all fell Thursday, but remain near multi-year highs. They are flat pre-market.

Retail ETFs SPDR S&P Retail (XRT), Market Vectors Retail ETF (RTH), and PowerShares Dynamic Retail (PMR) all closed lower and are unchanged pre-bell.

Among stocks, The Priceline Group (PCLN) has agreed to acquire OpenTable, Inc. (OPEN) for $103 per share in an all cash transaction valued at $2.6 billion. The Boards of Directors of The Priceline Group and OpenTable have unanimously approved the transaction, which will be effected through a tender offer and is expected to close in Q3. OpenTable will continue to be headquartered in San Francisco, CA and will operate as an independent business led by its current management team within The Priceline Group.

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.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.