Markets

ETF Preview: ETFs Flat to Lower as Markets Digest Trump's Inaugural Speech; Gold ETFs Gain

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

VelocityShares Daily 2x VIX Short Term ( TVIX ): +0.8%

PowerShares QQQ Trust ( QQQ ): -0.2%

VelocityShares 3x Long Gold ( UGLD ): +1.3%

VanEck Vectors Gold Miners ( GDX ): +1.3%

S&P 500 ETF Trust ( SPY ): -0.3%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were flat to lower. Actively traded PowerShares QQQ ( QQQ ) was down 0.2%.

U.S. stock futures were lower as traders reacted to newly-inaugurated U.S. President Donald Trump's Friday address and news over the weekend that the president planned talks "soon" with the leaders of Canada and Mexico to begin renegotiating the North American Free Trade Agreement (NAFTA).

With nothing on the economic calendar today, all eyes are on earnings figures from companies including McDonald's (MCD) and Halliburton (HAL), which both report prior to the open.

In news abroad, markets in Japan and Europe fell as local currencies gained strength against the dollar following Donald Trump's comments.

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 down 0.1%.

Cynosure (CYNO) shares jumped nearly 9% in pre-market after a report from Bloomberg cited two people familiar with the matter as saying the company, valued at about $1 billion, is exploring strategic options, including a sale. Botox maker Allergan Plc (AGN) as well as other medical-device businesses are seen as potential suitors.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) was down 0.4%. Direxion Daily Financial Bull 3X shares (FAS) was down 0.7% and its bearish counterpart, FAZ was up 0.6%.

Lloyds Banking Group (LYG) is working with law enforcement agencies to find out who was behind a cyber-attack that caused intermittent outages for customers on the personal banking websites nearly two weeks ago, Reuters reported, citing unnamed people with knowledge of the matter. Shares were down more than 1% in pre-bell trade.

Technology

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 also flat.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was inactive and Semiconductor Sector Index Fund (SOXX) was down 0.1%.

Qualcomm (QCOM) was down nearly 5% after news Friday it is being sued by Apple (AAPL) for roughly $1 billion, saying Qualcomm has been "charging royalties for technologies they have nothing to do with."

Apple also alleges that once it began cooperating with Korean authorities' antitrust investigation of Qualcomm, the company withheld $1 billion in retaliation. In a retort Monday, Qualcomm general counsel Don Rosenberg said, "while we are still in the process of reviewing the complaint in detail, it is quite clear that Apple's claims are baseless," adding that Apple has "intentionally mischaracterized our agreements and negotiations, as well as the enormity and value of the technology we have invented, contributed and shared with all mobile device makers through our licensing program."

Energy

Dow Jones U.S. Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was down 0.4% in pre-market trade.

Westlake Chemical Partners (WLKP) and Suncoke Energy (SXC) both issued statements Monday in response to the regulatory freeze issued by White House Chief of Staff. Suncoke last week said it was "disappointed" by the Internal Revenue Service Jan. 19 regulation under section 7704(d)(1)(E) of the Internal Revenue Code that excludes coke-making as a qualifying income generating activity for publicly traded partnerships. On Monday the company said "we are closely monitoring developments from the new administration and are aware of the memorandum that was issued on Jan. 20, 2017 by the White House Chief of Staff regarding a regulatory freeze pending review."

The company added that it believes "the qualifying income regulations" issued Jan. 19 "do not constitute emergency regulations and thus will be withdrawn for review by the new administration. We will continue to monitor these developments and are evaluating our options for engaging with the IRS to address our concerns with the scope of the proposed qualifying income regulations."

Meanwhile, Westlake, which received a letter from the IRS on January 19 confirming that its production, transportation, storage and marketing of ethylene constitutes "qualifying income" within the meaning of section 7704(d)(1)(E), said: "we look forward to the new administration's prompt review of the regulations issued by the IRS and Treasury."

SXC shares were up 1.0%, while WLKP was flat.

Commodities

Crude was down 1.5%. United States Oil Fund (USO) was down 1.6%. Natural gas was down 1.0% while United States Natural Gas Fund (UNG) was down 1.4%.

Gold was up 0.8%. SPDR Gold Trust (GLD) was up 0.5%. Silver was up 0.8% while iShares Silver Trust SLV) was up 0.3%.

Consumer

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) was down 0.3%. Retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were flat.

Shares of Kate Spade (KATE) were up almost 3% pre-market Monday after sources cited by Bloomberg said the luxury handbag maker is drawing takeover interest from Coach Inc. (COH), Michael Kors Holdings (KORS) and other luxury-brand companies as it pursues a sale.

Sources also said Coach and Michael Kors are talking to their respective boards about going ahead with a possible bid for Kate Spade. However, they noted that talks are ongoing and that final decisions have not been made.

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 MTNewswires.com. 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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