ETF Preview: ETFs, Futures Edge Higher as Traders Pause Trade War Worries Ahead of July 4 Holiday

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Active broad-market exchange-traded funds ahead of Tuesday's regular session:

iShares MSCI Emerging Index Fund ( EEM ): +0.8%

SPDR Select Sector Fund - Financial ( XLF ): +0.3%

SPDR S&P 500 ( SPY ): +0.5%

iShares MSCI EAFE ETF ( EFA ): +0.7%

Vanguard FTSE Emerging Markets ETF ( VWO ): +0.3%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were firmer. Actively traded PowerShares QQQ (QQQ) was up 0.6%.

US stock futures were higher ahead of the open of Tuesday's shortened trading session ahead of the US Independence Day holiday, as traders took a break from fretting over a possible global trade war between the US and some of its major trading partners.

Looking ahead to the one piece of economic data for release, US factory orders are expected to be unchanged for the month of May compared with the prior month's decline of 0.8%. The figures will be released at 10 am ET.

Auto and truck manufacturers are also set to report their June sales throughout the session.

Power Play: Health Care

Health Care SPDR (XLV) and other health care funds Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were flat. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was also inactive.

Gevo (GEVO) jumped more than 20% after the company said it has strengthened its balance sheet, raising approximately $36.3 million in gross proceeds from selling over 6.1 million shares via an at-the-market program with H.C. Wainwright & Co. It noted that as of July 3, it had cash and cash equivalents of approximately $41 million. The company said it plans to use some of its money at its specialty production facility in Luverne, Minnesota to make certain changes and improvements to produce low-carbon ethanol side-by-side with low-carbon isobutanol and to strategically develop its isobutanol and related hydrocarbon businesses.It said it believes it could become profitable on a non-GAAP cash EBITDA basis if it is able to obtain binding offtake agreements for its isobutanol and related hydrocarbon products that justify an expansion of the Luverne Facility whereby, upon obtaining adequate additional funding.

Winners and Losers


The Select Financial Sector SPDRs ( XLF ) was up 0.3%. Direxion Daily Financial Bull 3X shares (FAS) and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was flat.

Bank of the Ozarks (OZRK) said late Monday approved a $0.20 per share quarterly dividend, representing a 2.6% increase over its most recent distribution to investors of $0.195 per share. The upcoming dividend is payable on July 20 to shareholders of record on July 13.


Technology Select Sector SPDR ETF (XLK) and other tech funds 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 inactive.

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

Acxiom (ACXM) said after markets closed on Monday that it has agreed to sell its Acxiom Marketing Solutions business (AMS) to Interpublic Group (IPG) for $2.3 billion in cash. Upon closing, Acxiom expects to realize $1.7 billion in net cash proceeds, after taxes and fees. The deal is expected to close by the end of calendar 2018. Acxiom will retire its existing $230 million debt balance, resulting in a debt-free balance sheet; start a $500 million cash tender offer for its common stock; increase its outstanding share repurchase authorization by up to $500 million, and extend the duration of the program to December 31, 2020; transfer the Acxiom brand name and associated trademarks to IPG; and rename the company LiveRamp and, shortly thereafter, begin trading its common stock under the new ticker symbol "RAMP". ACXM shares rose more 9% in pre-market trade.


Dow Jones US Energy Fund (IYE) was flat and Energy Select Sector SPDR (XLE) was up 0.8% in pre-market trading .

Keane Group (FRAC) fell more than 9% after provider of oil-and-gas well completion services in the US said that on Sunday a hydraulic frac-fleet operating in the Permian Basin was involved in a fire, resulting in damage to a portion of the fleet, but that there were no injuries. The expense of replacing the damaged equipment is expected to be covered by the company's insurance program. Keane said it is working closely with its customer to ensure continuity of operations, and anticipates promptly resuming work with no material impact from the fire.


Crude was up 1.1%. United States Oil Fund (USO) was up 1.2%. Natural gas was down 0.1% while United States Natural Gas Fund (UNG) was quiet.

Gold was up 0.7%. SPDR Gold Trust (GLD) was up 0.6%. Silver was up 1.1%, while iShares Silver Trust (SLV) was up 0.7%.


Consumer Staples Select Sector SPDR (XLP) was up 0.1% and other funds Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were flat.

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 inactive in pre-market territory.

Herman Miller (MLHR) rose some 10% after it reported late Monday adjusted EPS rose to $0.66 in Q4 from $0.64 a year earlier, beating analysts' estimates of $0.58 in a Capital IQ poll. Revenue rose to $618.0 million from $577.2 million a year ago, exceeding the $601.10 million estimate. Looking forward, it expects net sales of $610 million to $630 million in Q1 and diluted EPS of $0.63 to $0.67. The Street expected EPS of $0.65 on revenue of $612.6 million.

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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