ETF Preview: ETFs, Futures Higher; Street Focus Returns to Earnings as Trade Worries Ease

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

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

iShares MSCI Emerging Index Fund ( EEM ): +1.3%

VanEck Vectors Gold Miners ETF ( GDX ): +1%

iPath S&P 500 VIX ST Futures ETN ( VXX ): -1..2%

iShares Inc iShares MSCI Brazil ETF ( EWZ ): +1.3%

Broad Market Indicators

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

US stock futures were pointing higher as trade issues took a backseat to upbeat corporate earnings, with ETSY (ETSY) and Office Depot (ODP) among gainers.

In economic data news, job openings for June will be released at 10 am ET, while consumer credit for June will be reported 3 pm ET.


Power Play: Health Care

Health Care SPDR (XLV) was up 0.2% and other health care funds Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were inactive. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.1% in pre-market trading .

Array BioPharma (ARRY) rose 9% after the company said it received Breakthrough Therapy Designation from the US Food and Drug Administration for encorafenib (BRAFTOVI), in combination with binimetinib (MEKTOVI) and cetuximab to treat patients with BRAFV600E-mutant metastatic colorectal cancer (mCRC) as detected by an FDA-approved test, after failure of one to two prior lines of therapy for metastatic disease.

Winners and Losers


The Select Financial Sector SPDRs (XLF) was inactive. Direxion Daily Financial Bull 3X shares (FAS) were also quiet while its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) were up 1% in the pre-market session.

Visa (V) rose marginally after it unveiled an investment and partnership with Israeli start-up Behalf that will support small business growth via easy-to-access capital and financing. As part of Visa's investment in Behalf, the credit card company will offer Behalf's small-business clients a tokenized Visa Virtual Card that will provide businesses with instant financing for their business purchases. Initially, the Visa Virtual Card will be offered in the US with plans to expand to other markets in coming months. The investment in Behalf is part of Visa's $100 million FinTech investment program.


Technology Select Sector SPDR ETF (XLK) 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 inactive.

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

Twilio (TWLO) rose nearly 18% late Monday after the company said revenue jumped 54% year-on-year to $147.8 million, beating the consensus on Capital IQ for $130.4 million. The company also reported non-GAAP net income of $0.03 a share compared with a year earlier loss of $0.05 and the Street's expectations for another loss of $0.06 a share. For Q3, Twilio sees revenue between $150 million to $152 million with net income of $0.02 to $0.03 a share. The Street's view is for flat earnings and revenue of $135 million. On the year, the company's projecting $585.5 million to $589.5 million for revenue and income of $0.02 to $0.04 a share. Analysts were looking for a loss of $0.09 a share and revenue of $543 million.


Dow Jones US Energy Fund (IYE) was flat and Energy Select Sector SPDR (XLE) was up 0.8% in pre-market trade.

Sanchez Energy (SN) fell more than 9% after the company reported Q2 loss of $0.71 per share, compared with the prior-year period's $0.40 per share. Analysts polled by Capital IQ were expecting EPS of $0.03. Revenue was $259.3 million, from $175.7 million in the same quarter last year. The Street view is for revenue of $250.6 million.


Crude was up 0.8%. United States Oil Fund (USO) was up 1.3%. Natural gas was up 0.4% while United States Natural Gas Fund (UNG) was up 0.4%.

Gold was up 0.3%. SPDR Gold Trust (GLD) was up 0.5%. Silver was up 0.6%, while iShares Silver Trust (SLV) was up 1%.


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 inactive in pre-market trade.

Dean Foods Company (DF) fell more than 10% after it said Q2 GAAP loss per share was $0.46 and adjusted EPS was $0.16. The CapIQ mean was for GAAP EPS of $0.04 and normalized EPS of $0.15. Sales rose to $1.95 billion from $1.93 billion and beat expectations for $1.91 billion. It cut its full-year 2018 adjusted earnings expectation to between $0.32 and $0.52 from a prior view of $0.55 to $0.80, below forecasts for $0.65.

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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