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ETF Preview: ETFs, Futures Give Up Gains as September Jobs Report Disappoints

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

SPDR S&P 500 ETF Trust ( SPY ): -0.7%

VIX Short-Term Futures ETN Ipath ( VXX ): +2%

iShares MSCI Emerging Index Fund ( EEM ): -0.2%

iShares Russell 2000 ETF ( IWM ): -0.7%

SPDR Select Sector Fund - Financial ( XLF ): -1.7%

Broad-Market Indicators

Most broad-market exchange-traded funds, including SPY, IWM, IVV and others, inched higher. Actively traded PowerShares QQQ (QQQ) was down 0.9%.

U.S. stock futures reversed early pre-market gains and were pointing to a negative open after the government reported that the U.S. economy created 142,000 new jobs in September, missing expectations for 200,000 jobs. The number of new hires in August and July was also revised lower by a combined 59,000. Meanwhile, the unemployment rate remained unchanged at 5.1%.

Hourly wages were unchanged in September, missing forecasts. The typical worker earned $25.09 an hour last month, down a penny from August. Year over year, hourly wages rose 2.2%.

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Power Play: Consumer

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

Consumer Discretionary SPDR (XLY) was down 0.1% while SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were flat.

Wynn Resorts (WYNN) rose 8.7% after reports that authorities in mainland China are reviewing plans on boosting the Macau enclave's economy. Wynn owns a 72.3% stake in Wynn Macau, a 1,008-room casino-hotel in the special administrative district, Gaming stocks on on the Hong Kong Hang Seng traded higher Friday, such as Galaxy Entertainment, up 10.15% at the close. Macau gaming houses have been crimped by the mainland anti-corruption program, one goal of which is to reduce illegal outflow of cash from China. Macau monthly gaming revenues have been off by about one-third, year-over-year.

Winners and Losers

Financial

Select Financial Sector SPDRs ( XLF ) was down 1.8%. Daily Financial Bull 3X shares (FAS) was down 4.1% and its bearish counterpart, FAZ, was up 3.5%.

CRC Insurance Services Inc., a wholesale insurance subsidiary of BB&T Corporation's principal subsidiary Branch Banking and Trust Company, agreed to acquire Connecticut Underwriters, Inc. (CUI). Terms were not disclosed. Founded in 1964, Connecticut Underwriters is a premier wholesale broker/managing general agent (MGA) that has grown into one of the northeast's leading independent excess and surplus lines brokers.

Technology

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 inactive. SPDR S&P International Technology Sector ETF (IPK) was also unchanged.

Semiconductor ETFs SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were flat in pre-market trading .

Microsoft (MSFT) and ASUSTeK Computer Inc. said late Thursday that they had expanded an earlier patent licensing agreement between the companies. The deal includes a broad cross-license covering, for example, ASUS Android-based phones and tablets and Microsoft software, devices and services. The agreement also paves the way for closer integration between the two companies, including pre-installation by ASUS of Microsoft Office productivity services on ASUS Android smartphones and tablets. MSFT shares were up 0.7%.

Industrial

Select Sector SPDR-Industrial (XLI), Vanguard Industrials (VIS), and iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ) were flat.

Dynamic Materials (BOOM) said Friday it now expects its Q3 revenues to range from $38 million to $40 million, representing a 23% to 27% decrease versus the $51.9 million reported in Q3 2014. Analysts are expecting Q3 revenue of $46.7 million, according to Capital IQ. The company previously forecast revenues to be down 8% to 12% versus last year's Q3. Gross margin for the quarter is now expected to range from 25% to 27%, compared to the previous guidance of 27% to 29%.

Energy

Dow Jones U.S. Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was down 1%.

Teekay LNG Partners L.P (TGP) said Friday that it will pay a quarterly cash distribution of $0.70 per unit on November 13 to shareholders of record on October 30. The LNG and crude oil marine transportation company maintained its distribution rate from the previous quarter.

Commodities

Crude was up 0.9%. United States Oil Fund (USO) was up 0.7%. Natural gas futures were up 0.5%. United States Natural Gas Fund (UNG) was up 0.7%. Gold was up 1.4% and SPDR Gold Trust (GLD) was up 1.9%.

Health Care

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 0.7%.

Novartis (NVS) was off 0.2% after the Swiss drugmaker said the Food and Drug Administration accepted for review an application for a biosimilar copy of Amgen's (AMGN) Enbrel (etanercept). Novartis said its Sandoz unit is seeking approval for all indications included in the label for Enbrel, including rheumatoid arthritis and psoriasis.

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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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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