ETF Preview: ETF, Futures Higher as Philly Fed Manufacturing Index Soars to Highest Level Since 1984

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

SPDR Select Sector Fund - Financial ( XLF ): -0.2%

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

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): +0.1%

iShares MSCI Emerging Index Fund ( EEM ): -0.1%

Direxion Daily Junior Gold Miners Index Bull 3X Shares ( JNUG ): +2.3%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were weaker. Actively traded PowerShares QQQ (QQQ) was up 0.04%.

U.S. stock futures were in positive territory after the Philadelphia Fed reported that its manufacturing index rose to a reading of 43.3 in February from 23.6 in January - the highest level since early 1984 and well above the forecasts for a reading of 20.

U.S. housing starts, meanwhile, slipped 2.6% in January to an annual rate of 1.25 million, versus expectations for housing starts to total 1.23 million. Building permits rose 4.6% in January to a 1.29 million pace.

Weekly jobless claims rose by 5,000 to 239,000, versus expectations for claims to total a seasonally adjusted 242,000. Continuing jobless claims declined by 3,000 to 2.08 million.

Power Play: Health Care

Health care funds Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were flat. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.1%.

Acura Pharmaceuticals (ACUR) was down 26.7% after it said late Wednesday it has received notification from the Nasdaq stock market that it is subject to delisting, effective Feb. 23, after failing to regain compliance after not maintaining a minimum of $2.5 million in stockholders' equity. The company said it doesn't intend to request an appeal and will transition the listing of its stock to the OTCQB market.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was down 0.2%. Direxion Daily Financial Bull 3X shares (FAS) was up 0.2% and its bearish counterpart, FAZ was down 1.1%.

On Deck Capital (ONDK) reported Q4 adjusted net loss of $0.44 per diluted share, wider than last year's adjusted net loss of $0.02 per diluted share and the Capital IQ consensus of an adjusted net loss of $0.17 per diluted share. Revenues grew 21% year-over-year to $81.8 million, exceeding the mean estimate of $80.7 million provided by Capital IQ. The company expects Q1 revenues of between $89 million and $93 million, at and below the $93 million estimate, and FY revenue of $377 million and $387 million, straddling the $384.4 million consensus.


Tech funds 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 quiet in pre-market trading . SPDR S&P International Technology Sector ETF (IPK) was flat.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were inactive.

American depository shares of NetEase (NTES) were up 7.8% after the provider of online role-playing games reported late Wednesday Q4 adjusted earnings of $4.30 per ADS, up from $2.56 per ADS a year earlier and topping the $3.61 per ADS consensus. Revenues rose to RMB12.1 billion ($1.74 billion) from RMB7.90 billion in the year-ago quarter and beat the $1.55 billion average estimate.


Dow Jones U.S. Energy Fund (IYE) was flat and Energy Select Sector SPDR (XLE) were up 0.1% pre-market.

Ballard Power Systems (BLDP) was up 5.1% after the company said it has truck a deal under which Zhongshan Broad-Ocean Motor Co will manufacture fuel cell modules in three strategic regions in China, including Shanghai. Ballard said the deal has an estimated value of approximately $25 million in revenue over the initial 5-year term, including $12 million in technology solutions revenue. Ballard said Broad-Ocean plans to engage with local governments as well as with bus and commercial vehicle original equipment manufacturers for deployment of fuel cell buses and commercial vehicles incorporating Ballard-designed modules manufactured by Broad-Ocean. Broad-Ocean will make payments to Ballard at closing and based on certain commissioning milestones, initial supply agreements, and recurring royalty payments. Ballard will also have the exclusive right to purchase fuel cell engines from any of the Broad-Ocean manufacturing operations for sale outside China.


Crude was up 0.4%. United States Oil Fund (USO) was up 0.6%. Natural gas was down 0.7% while United States Natural Gas Fund (UNG) was down 0.5%.

Gold was up 0.4%. SPDR Gold Trust (GLD) was up 0.4%. Silver was up 0.3% while iShares Silver Trust (SLV) was up 0.5%.


Consumer staples funds Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples ETF (VDC), and iShares Dow Jones US Consumer Goods (IYK) were unchanged.

Consumer Discretionary Select Sector SPDR (XLY) and retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were also flat.

Kate Spade (KATE) was up 10.6% after the apparel company said it begun a strategic review and reported Q4 adjusted earnings which were better-than-expected on in line revenues. Q4 adjusted EPS was $0.41 per share, up from $0.32 per share a year earlier and above the $0.34 per share consensus compiled by Capital IQ. Revenues rose 9.8% year-over-year to $470.8 million and met analysts' expectations. Kate Spade said it is conducting a strategic review to further enhance shareholder value in consultation with financial advisor Perella Weinberg Partners and its legal counsel Paul, Weiss, Rifkind, Wharton & Garrison. The company noted there are no guarantees that the review process will result in an actual transaction and said it will not pro

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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