ETF Preview: ETFs, Futures Higher on Mostly Upbeat Retail Sales, Empire State Manufacturing Data

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

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

VelocityShares Daily 2x VIX Short Term ETN ( TVIX ): +6.9%

iShares MSCI Emerging Index Fund ( EEM ): -1.7%

SPDR Select Sector Fund - Financial ( XLF ): -0.2%

VanEck Vectors Gold Miners ETF ( GDX ): -1.7%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were higher. Actively traded PowerShares QQQ (QQQ) was up 0.2%.

US futures were higher after the report that April retail sales rose 0.3%, versus expectations for an increase of 0.4%. March sales were revised to an increase of 0.8% from the initial growth of 0.6%.

Meanwhile, the Empire State manufacturing index rose to a May reading of 20.1 from 15.8 in April. Forecasts had been for a reading of 15.5.

Looking ahead, business inventories and the NAHB housing market index will both be released at 10 am.

Power Play: Technology

Technology Select Sector SPDR ETF (XLK) was down 0.5% 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 flat.

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

Vodafone Group (VOD, VOD.L) disclosed that its chief executive officer Vittorio Colao will step down on Oct. 1, capping his 10-year stint with a fiscal 2017 operating profit that exceeded the company's own expectations. Group chief financial officer Nick Read will replace Colao, while deputy chief financial officer Margherita Della Valle will succeed Read, according to a company statement.

In a separate statement on its earnings, Vodafone said group service revenue fell to EUR41.07 billion ($48.8 billion) during the year ended March 31, from EUR42.99 billion a year ago. On an organic basis, group service sales were up 1.6%, with growth driven by broadband market share gains and strong data demand as well as good data monetization in emerging markets, offsetting declines related to regulatory factors in the European Union and a drag from handset financing in the UK. Vodafone reported a "strong" growth in its organic adjusted earnings before interest, tax, depreciation, and amortization, which surged by 11.8% to 14.7 billion euros, exceeding the company's own guidance of about 10% organic growth. VOD ADRs fell more than 3%.

Winners and Losers


The Select Financial Sector SPDRs ( XLF ) was down 0.3%. Direxion Daily Financial Bull 3X shares (FAS) was down 1.1% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was up 1%..

Corporate Capital Trust (CCT) reported financial results for Q1, with earnings and revenue that topped analysts' expectations. The business development company posted adjusted earnings of $0.57 per share, compared with the prior-year period's $0.62 per share. Analysts polled by Capital IQ were expecting EPS of $0.42. Revenue was $99.6 million, up from $92.8 million in the same quarter last year. The Street view was for revenue of $95.1 million.


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

Goodrich Petroleum (GDP) reported net loss per diluted share of $0.47 for Q1, narrower than last year's net loss per diluted share of $0.63. Analysts were expecting net profit per diluted share of $0.04. Revenue grew year-over-year to $11.8 million from $9.4 million but still missed Street view of $15 million. For 2018, the company reduced its production guidance to a new range of 65,000 to 75,000 Mcfe per day from 77,000 - 83,000 Mcfe per day.


Crude was up 1.1%. United States Oil Fund (USO) was up 1%. Natural gas was up 0.3% while United States Natural Gas Fund (UNG) was up 0.5%.

Gold was down 0.8%. SPDR Gold Trust (GLD) was down 0.8%. Silver was down 1.7%, while iShares Silver Trust (SLV) was down 1.3%.


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

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 quiet in the pre-market session.

Bravo Brio Restaurant Group (BBRG) shares rose marginally after the company said its board has rejected the offer of Romano's Macaroni Grill to purchase all of the fully diluted outstanding common shares of the company for approximately $4.78 per share. The board said that pursuing the proposal, which relies on significant third party financing and debt sources, would be potentially detrimental to Bravo Brio given the substantial liquidity constraints facing the company. Correspondingly, the board continues to unanimously recommend that Bravo Brio's shareholders support the proposal to approve and adopt the merger agreement with GP Investments, an affiliated unit of Spice Private Equity

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 down 0.2%..

Synlogic (SYBX) rose 2.8% after the clinical-stage drug developer reported Q1 loss per share of $0.55, narrower than the Street view for a loss of $0.66 as compiled by Capital IQ. The company reported Q1 revenue of $354,000, up from $111,000 a year earlier, and above the Street view of $110,000. Synlogic said at end of Q1 it had cash, cash equivalents, and short-term investments of $125.8 million. and that In April it completed a registered direct offering generating $28.9 million in net proceeds. Synlogic expects its cash position to be sufficient to fund operations to mid-2020.

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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