ETF Preview: ETFs, Futures Higher Following January PPI Growth; Fed Chair Yellen's Testimony Still Ahead

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

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

SPDR S&P 500 ( SPY ): +0.02%

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): -0.4%

VanEck Vectors Gold Miners ETF ( GDX ): +1.4%

Direxion Daily Gold Miners Index Bull 3X Shares ( NUGT ): +4%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were higher. Actively traded PowerShares QQQ (QQQ) was up 0.03%.

U.S. stock futures were pointing to a higher open as investors awaited Federal Reserve Chair Janet Yellen's Humphry-Hawkins testimony to the Senate Banking Committee at 10 am ET.

In economic data, the producer price data rose 0.6% in January, versus forecasts for a 0.3% increase. Core producer prices, which excludes energy and food, rose 0.2%.

Equities, however, could face pressure on news that President Donald Trump's national security adviser has resigned from his appointment following allegations over his contacts with Russian officials.

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 up 0.2%.

Axsome Therapeutics (AXSM) was up 12% after it reported it received U.S. Food and Drug Administration Fast Track designation for AXS-05, its drug therapy for treatment-resistant depression. The FDA Fast Track program is designed to expedite review of drugs that treat serious or life-threatening conditions. Axsome noted the drug combination AXS-05, of bupropion and dextromethorphan, is being evaluated in a ongoing phase 3 study.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was up 0.04%. Direxion Daily Financial Bull 3X shares (FAS) was up 0.6% and its bearish counterpart, FAZ was flat.

NewStar Financial (NEWS) reported Q4 earnings of $0.23 per share, compared with the prior-year period's $0.09 per share. One analysts on Capital IQ was expecting EPS of $0.16. Revenue, calculated as the sum of net interest income and non-interest income, was $40.5 million, up from $28 million in the same quarter last year. The single analyst estimate was for revenue of $25.3 million. The company also said its board of directors adopted a new dividend policy and declared a quarterly dividend of $0.02 per share of common stock. The dividend is expected to be paid on March 17, 2017, to shareholders of record at the close of business on March 2, 2017.


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 flat.

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

T-Mobile (TMUS) was down 0.3% after it reported improved Q4 results from a year earlier that beat forecasts compiled by Capital IQ. Q4 EPS was $0.45 per share, up from $0.34 per share a year earlier and well above the $0.29 per share consensus. Revenues surged 23% year-over-year to $10.18 billion and beat expectations for $9.86 billion. For FY17, the company expects to add between 2.4 and 3.4 million branded post-paid net additions and adjusted EBITDA of $10.4 billion to $10.8 billion.


Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) were flat pre-market.

Noble Energy (NBL) was up 1.8% after it reported late Monday Q4 adjusted earnings of $0.26 per share, compared with the prior-year period's $0.44 per share. Analysts polled by Capital IQ were expecting a loss of $0.10 per share. Revenue was $1.01 billion, up from $860 million in the same quarter last year. The Street view was for revenue of $1.04 billion. The company said full-year sales volumes are now expected to be 415 - 425 MBoe/d, up nearly 5% from last year, after adjusting for 2016 divestment impacts. Total company oil volumes are anticipated to be higher by approximately 9%.


Crude was up 0.6%. United States Oil Fund (USO) was up 0.8%. Natural gas was down 1.3% while United States Natural Gas Fund (UNG) was down 1%.

Gold was up 0.7%. SPDR Gold Trust (GLD) was up 0.5%. Silver was up 1% while iShares Silver Trust (SLV) was up 0.8%.


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) and retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were also flat.

Dr Pepper Snapple Group (DPS) was down 2.8% after it reported that Q4 core EPS increased 4% to $1.04, but lagged behind the $1.06 average estimate of analysts surveyed by Capital IQ. Q4 sales increased to $1.58 billion from $1.55 billion. Analysts had predicted $1.58 billion. Looking ahead, the company expects 2017 core EPS in the $4.44 to $4.54 range, and sales growth of about 4.5%. Analysts had projected EPS of $4.41 and sales growth of 4.2%. The company expects a 9.4% dividend increase and repurchases of its common stock of $450 million to $500 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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