ETF Preview: ETFs, Futures Flat to Lower as Tax Reform Worries Resurface; Street Mulls NY Manufacturing Data

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

SPDR S&P 500 ( SPY ): -0.2%

SPDR Select Sector Fund - Financial ( XLF ): -0.04%

iShares MSCI Emerging Index Fund ( EEM ): -0.02%

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): -0.3%

iShares Russell 2000 ETF ( IWM ): +0.5%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV edged lower. Actively traded PowerShares QQQ (QQQ) was up 0.3%.

US stock futures were flat to lower, as worries about a possible stall in the tax reform plans resurfaced and as investors digested the latest reading of the Empire State manufacturing index.

The New York Fed reported that its manufacturing index fell to a reading of 18 in December from 19.4 in November -- matching expectations.

Industrial production data was released at 9:15 am, showing a gain of 0.2%, below forecasters consensus reading of a gain of 0.3% in November vs a prior gain of 0.9%.

Power Play: Consumer

Consumer Staples Select Sector SPDR (XLP) was down 0.3% while other funds Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were inactive.

Consumer Discretionary Select Sector SPDR (XLY) rose 1.6% while retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were flat.

Under Armour (UA) shares rose 4.7% after the maker of athletic apparel, footwear and accessories said it has formed an official partnership with the Canadian Olympic Committee. Under the terms of the partnership, Under Armour becomes the official "high performance footwear supplier for Team Canada" for the next eight years. This is Under Armour's first sponsorship with a National Olympic committee. Team Canada athletes will first appear in Under Armour high performance footwear at the Olympic Winter Games PyeongChang 2018 opening ceremony.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was down 0.1%. Direxion Daily Financial Bull 3X shares (FAS) was down 0.6% and its bearish counterpart, FAZ was up 0.7%.

BGC Partners (BGCP) said its subsidiary Newmark Group has priced an initial public offering of 20 million shares at $14 per share. Newmark is expected to start trading on the Nasdaq global select market Friday under the symbol NMRK. Underwriters have a 30-day option to purchase an additional three million shares at the IPO price. At closing, BGC said it will own about 85.3% of Newmark's shares. BGC plans to distribute all its Newmark shares to BGC shareholders. Timing of the distribution will be at BGC's discretion.


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 flat.

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

Adobe Systems (ADBE) rose 2% after it reported Q4 revenue catapulted to $2.01 billion, from $1.61 billion a year ago, the company said in its earnings statement. The sales came in well above the $1.95 billion average analyst estimate compiled by Capital IQ and the company's own target of $1.95 billion. Adjusted earnings per share climbed to $1.26 from $0.90, also beating Street's expectations of $1.16 per share and an internal forecast of $0.86. In the fiscal year 2018, the company expects to clock in a revenue of about $8.725 billion, above its October forecast of $8.700 billion and just shy of the analyst consensus of $8.730 billion. Adjusted earnings are seen at $5.50 per share versus the Street's outlook of $5.51 per share. In the first fiscal quarter, the company is targeting sales of about $2.04 billion in-line with a Street projection of $2.04 billion. Earnings are targeted at $1.27 per share, above the analyst forecast of $1.25 per share for the same quarter.


Dow Jones US Energy Fund (IYE) was up 0.02% and Energy Select Sector SPDR (XLE) was down 0.4%.

Noble Energy (NBL) said it has agreed to sell a 50% interest in Cone Gathering LLC to CNX Resources (CNX) for $305 million in cash. The company is retaining its 21.7 million common limited partner units, with plans to divest the units over the next few years. Cone Gathering owns the general partner of Cone Midstream Partners LP (CNNX). The transaction is expected to close in early 2018, subject to customary closing conditions.


Crude was up 0.3%. United States Oil Fund (USO) was up 0.1%. Natural gas was up 0.1% while United States Natural Gas Fund (UNG) was up 0.4%

Gold was up 0.4%. SPDR Gold Trust (GLD) was up 0.7%. Silver was up 0.9%, while iShares Silver Trust (SLV) was up 0.9%.

Health Care

Health care funds Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH), were quiet. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.2%.

Radius Health (RDUS) shares fell more than 3% after the company said Friday that the European Medicines Agency's Committee for Medicinal Products for Human Use will issue a third list of outstanding issues in its review of abaloparatide-SC, a bone building agent to treat osteoporosis in postmenopausal women at increased risk of fracture. The committee informed the company it intends to refer the marketing authorization application to a scientific advisory group for additional advice. Radius now expects the CHMP to issue an opinion regarding the marketing authorization application during H1 next year.

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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