ETF Preview: ETFs, Futures Higher Following Friday's Solid Jobs Report

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

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

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

SPDR Select Sector Fund - Financial ( XLF ): +0.1%

iPath S&P 500 VIX Short Term Futures TM ETN ( VXX ): +1.9%

PowerShares QQQ Trust, Series 1 ( QQQ ): +0.3%

Broad Market Indicators

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

US stock futures were in positive territory ahead of the open, still riding on the momentum following Friday's nonfarm payrolls data for February, which showed a smaller increase in wages despite jobs growth. The mixed data eased some of the concerns about the timing of the Federal Reserve's plans to implement interest rate increases this year.

No major economic data releases are set for Monday, with only the Federal budget for February due for release at 2 pm ET.

Looking ahead for the rest of the week, data on consumer prices and core CPI will be reported on Tuesday; retail sales, the producer price index and business inventories on Wednesday; and weekly jobless claims and the import price index, among others, on Thursday. Friday will see the most economic data releases, with data on housing starts, building permits, industrial production, capacity utilization, consumer sentiment all on tap.

Power Play: Health Care

Health Care SPDR (XLV) was down 0.4% and other health care funds Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were quiet. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.1%.

Sarepta Therapeutics (SRPT) rose nearly 5% after it said it intends to complete a rolling submission of its therapeutic candidate, golodirsen, after it received the final minutes from a February 2018 Type C meeting held with the Division of Neurology Products, US Food and Drug Administration, to solicit the division's guidance on golodirsen's development pathway. Golodirsen is a phosphordiamidate morpholino oligimer engineered to treat those patients with Duchenne muscular dystrophy who have genetic mutations subject to skipping exon 53 of the DMD gene. Based on the results of its Study 4053-101, in addition to the FDA's feedback, the company said that it will submit its golodirsen NDA by year-end 2018, seeking accelerated approval of golodirsen based on an increase in dystrophin protein as a surrogate endpoint.

Winners and Losers


The Select Financial Sector SPDRs ( XLF ) was up 0.1%. Direxion Daily Financial Bull 3X shares (FAS) was up 0.5% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was down 0.4%.

Deutsche Bank (DB) is seeking to raise as much as 1.8 billion euros ($2.22 billion) in an IPO of its asset management unit DWS. The bank is offering 40 million shares in the unit as a base offering, a 20% stake, it said in a statement on its website on Sunday. It said it may also sell 4.8 million shares, a 2.4% stake, from its indirect holdings "in the event of particularly strong demand." It may make available in the offering an additional 5.2 million shares, a 2.6% stake, from its indirect holdings to cover potential over-allotments. The price range for the offering is between EUR30.00 and EUR36.00 per share. Japan's Nippon Life Insurance agreed to acquire a 5% stake in DWS in the IPO at the IPO issue price. DB shares fell 0.1%.


Technology Select Sector SPDR ETF (XLK) was up 0.4% 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 quiet.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was flat while Semiconductor Sector Index Fund (SOXX) was up 0.7%.

CyberArk Software (CYBR) said it acquired certain assets of privately-held Vaultive, a cloud security provider. Building on the Vaultive technology, CyberArk will deliver greater visibility and control over privileged business users, and Software-as-a-Service, Infrastructure-as-a-Service and Platform-as-a-Service administrators, the company said. The assets will extend the CyberArk product to highly privileged users, which are frequent targets for cyber attacks, it said. The deal closed on Monday. Financial terms were not disclosed.


Dow Jones US Energy Fund (IYE) was inactive and Energy Select Sector SPDR (XLE) was down 0.2%.

GasLog LP (GLOG) disclosed early Monday that it placed an order for a vessel with Samsung Heavy Industries.

The newbuild 180,000 cubic meter Flex Plus vessel with XDF propulsion - Hull No. 2274 - is scheduled to be delivered in Q2, 2020, and is currently unchartered, according to a GasLog statement that did not disclose the value of its order. The company said it has also agreed on options for additional newbuild vessels from Samsung.


Crude was down 0.8%. United States Oil Fund (USO) was down 0.7%. Natural gas was up 1.5% while United States Natural Gas Fund (UNG) was up 1.9%.

Gold was down 0.5%. SPDR Gold Trust (GLD) was down 0.5%. Silver was down 0.9%, while iShares Silver Trust (SLV) was down 0.8%.


Consumer Staples Select Sector SPDR (XLP) 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 also quiet in pre-market trading .

Clorox (CLX) said it agreed to acquire Sunrise, Florida-based health and wellness company Nutranext for $700 million. Clorox expects the acquisition to dilute earnings per share by $0.07 to $0.11 in fiscal Q4, which ends June 30. It is expected to dilute earnings by $0.08 to $0.12 in fiscal 2019 and to be accretive to earnings per share in fiscal 2020. Nutranext's products include Rainbow Light and Natural Vitality multivitamins. The company also manufactures multivitamins and specialty minerals through its direct-to-consumer business, primarily under the Stop Aging Now brand. About 90% of Nutranext sales are in the US. The company generated sales of about $200 million in 2017. The company expects to fund the transaction through a combination of cash and debt financing, while maintaining a Debt/EBITDA ratio within its target range of 2.0x to 2.5x. The acquisition is expected to close in Clorox's fiscal Q4.

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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