ETF Preview: ETFs, Futures Hold on to Losses Following Surprise Devaluation of Yuan; Investors Mull Q2 Productivity Data

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

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

Market Vectors Gold Miners ETF ( GDX ): +1.3%

Direxion Daily Gold Miners Index Bull 3X Shares ( NUGT ): +4.5%

3X Long Natural Gas ETN Velocityshares ( UGAZ ): -2.9%

iShares MSCI Emerging Index Fund ( EEM ): -1.8%

Broad-Market Indicators

Most broad-market exchange-traded funds, including SPY, IWM, IVV and others, slipped lower. Actively traded PowerShares QQQ (QQQ) was down 0.5%.

U.S. stock futures were looking to open in the negative territory after China devalued the yuan in a surprise move that put upward pressure on the dollar and sent oil prices lower.

In economic data news, the National Federation of Independent Business (NFIB) said that its small business optimism index for July rose 1.3 points to a reading of 95.4

Meanwhile, U.S. productivity for Q2 rose by a 1.3% annual pace. Output increased 2.8% while hours worked rose 1.5%. Unit-labor costs rose by a 0.5% annual rate. Hourly compensation for all workers rose 1.8%; adjusted for inflation, it fell 1.1%.

Still ahead, wholesale inventories for June are due out 10 am ET.

Power Play: Industrial

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

Terex (TEX) rose 26.8% after the company said it will merge with Konecranes Plc in an all-stock deal. Closing is expected to occur during the first half of 2016. Konecranes and Terex will combine to create a single company with estimated pro forma 2014 revenues and EBITDA of $10.0 billion and $845 million, respectively. Upon completion of the transaction, Terex shareholders will own approximately 60% of the combined company and Konecranes shareholders will own approximately 40%. The new company will be named Konecranes Terex Plc and will be incorporated in Finland. Konecranes Chairman and the Terex CEO will become, respectively, the Chairman and the CEO of the combined company at closing.

Winners and Losers


Select Financial Sector SPDRs (XLF) was up 0.1% in pre-market trading . Daily Financial Bull 3X shares (FAS) was down 2.5% and its bearish counterpart, FAZ, was up 1.7%.

Symetra Financial (SYA) was up 6.9% after it said it agreed to be bought by Japan's Sumitomo Life Insurance Co. for $32.00 per share in cash, plus a previously announced special dividend of $0.50 per share in cash, for a total transaction value of about $3.8 billion. The price represents a 32% premium over Symetra's average stock price for the 30 days ending Aug. 30th. Symetra will become Sumitomo Life's platform in the U.S., where Sumitomo Life does not currently have a material operational presence. Symetra President and CEO, Thomas M. Marra, and the current management team will continue to lead the business from the company's headquarters in Bellevue, Washington.


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.

Symantec (SYMC) was up 7.3% after it said Q1 sales were $1.499 billion, below the CapIQ mean for $1.5273 billion. Non-GAAP EPS were $0.40, missing forecasts by three cents. Q2 sales are seen between $1.485 and $1.525 billion with non-GAAP EPS seen between $0.40 and $0.43, Street views are for sales of $1.54367 billion and EPS of $0.45 normalized. FY16 sales are seen between $6.21 billion and $6.35 billion, compared with forecasts for $6.27382 billion. Non-GAAP EPS are seen between $1.80 and $1.90, compared with estimates for $1.86. It declared a quarterly cash dividend of $0.15 per common share to be paid on September 16 to all shareholders of record as of the close of business on August 26. The ex-dividend date will be August 24. Separately, it says it will sell its information management business, Veritas, to a group of investors led by The Carlyle Group for $8 billion. The deal is expected to close by January 1.


Dow Jones U.S. Energy Fund (IYE) was down 0.03% and Energy Select Sector SPDR (XLE) was up 0.2% in pre-market trading.

DAQQ New Energy (DQ) reported that for Q2, its loss narrowed on lower revenue vs. year ago levels. The company, which manufactures and sells polysilicon and wafers in China, posted Q2 net loss attributable to shareholders of $0.9 million or $0.09 loss per ADS, compared with the prior-year period's $4.5 million or $0.57 loss per ADS. Revenue was $34.3 million, down from $43.7 million in the same quarter last year. Analysts polled by Capital IQ were expecting earnings of $0.05 per ADS on revenues of $34.7 million.


Crude was down 2.4%. United States Oil Fund (USO) was down 1.8%. Natural gas futures were down 1.1%. United States Natural Gas Fund (UNG) was flat. Gold was up 0.4% and SPDR Gold Trust (GLD) was up 0.5%.


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

Gap (GPS) said late Monday July comparable sales fell 3% versus a 2% increase in the year-ago period. July net sales were $1.12 billion compared with net sales of $1.17 billion a year ago. Q2 net sales decreased 2% to $3.90 billion compared with $3.98 billion last year and the CapIQ mean for $3.96759 billion. Q2 same-store sales fell 2% compared with flat a year ago. Q2 adjusted EPS are seen between $0.63 to $0.64, compared with the CapIQ mean for $0.66. Reported EPS are seen between $0.51 to $0.52,

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 down 0.4%.

ICU Medical (ICUI) was up 9.9% after the company late Monday reported Q2 adjusted net earnings was $0.97 per share, versus $0.51 per share in the same quarter the previous year. The Capital IQ analyst estimate is for $0.54 EPS. Revenue was $83.7 million, up from $78.6 million in the same quarter last year. Analysts were expecting revenue of $78.9 million. The company now expects fiscal 2015 EPS of $3.49 - $3.69 on revenue of $325 million - $330 million. The Street view is for EP

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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