ETF Preview: ETFs, Futures Look to Open Higher as Wall Street Focuses on Earnings

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

SPDR S&P 500 ( SPY ): +0.3%

VanEck Vectors Gold Miners ETF ( GDX ): -0.7%

Direxion Daily Gold Miners Index Bull 3X Shares ( NUGT ): -2.1%

Direxion Daily Junior Gold Miners Index Bull 3X Shares ( JNUG ): -2.8%

SPDR Select Sector Fund - Financial ( XLF ): +0.6%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were higher. Actively traded PowerShares QQQ (QQQ) was up 0.5%.

U.S. stock futures were pointing higher, on track to extend the gains from the previous session, with the Dow Jones Industrial Average hovering once again near the 20,000 level.

Wall Street is digesting a slew of earnings reports including from Boeing (BA), Texas Instruments (TXN) and Alcoa (AA), which were trading higher. Meanwhile, Freeport-McMoRan (FCX), State Street (STT) and Abbott (ABT) were lower. After the close, AT&T (T), Qualcomm (QCOM), Las Vegas Sands (LVS), and eBay (EBAY) will be reporting their results.

In economic data news, the Mortgage Bankers' Association application index rose 4%, along with a 6% gain on the purchase index and a 0.2% rise on the refinancing index.

Crude futures were lower after the America Petroleum Institute (API) projected that US stockpiles of oil rose last week and despite a weaker greenback. Investors will also be awaiting the report of the Energy Information Administration (EIA),which is slated to release its weekly stockpile data later.

Power Play: Technology

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.

Seagate Technology (STX) rose 13% after it reported late Tuesday Q2 revenue of $2.9 billion, ahead of the analyst consensus of $2.83 billion on Capital IQ. Earnings were $1.38 per share, vs. expectations of $1.08 per share.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was up 0.6%. Direxion Daily Financial Bull 3X shares (FAS) was up 1.4% and its bearish counterpart, FAZ was flat.

State Street (STT) was down 1.3% after it reported Q4 adjusted earnings of $1.48 per diluted share compared with an income of $1.21 per share a year ago, beating the $1,32 average EPS estimate from analysts polled by Capital IQ. Revenues over the three months that ended Dec. 31 jumped to $2.75 billion from $2.59 billion a year ago, coming in below the $2.77-billion consensus.


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

Alcoa (AA) was up 2.6% after it reported late Tuesday Q4 adjusted net income, excluding the impact of special items, of $0.14 a share, missing the average of estimates on Capital IQ for $0.24. A year earlier, the company reported an adjusted loss of $0.58. The number was reported on a carved-out basis as prior to November Alcoa's earnings were consolidated as part of the former parent. Revenue was $2.54 billion, ahead of the Street's view for $2.37 billion. A year earlier sales were $2.45 billion.


Dow Jones U.S. Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was down 0.04% in pre-market trade.

Freeport-McMoRan (FCX) was down 3.9% after it said that for Q4, it swung to an adjusted profit of $0.25 per share from an adjusted loss of $0.02 per share a year earlier, which missed the $0.34 per share consensus. Revenues rose to $4.38 billion from $3.52 billion but were below the $4.44 billion average estimate. For FY17, Freeport expects total capital expenditures of $1.8 billion, down from $2.8 billion in 2016.


Crude was down 0.8%. United States Oil Fund (USO) was down 0.4%. Natural gas was up 0.03% while United States Natural Gas Fund (UNG) was down 0.2%.

Gold was down 0.7%. SPDR Gold Trust (GLD) was down 0.5%. Silver was down 1.3% while iShares Silver Trust SLV) was down 0.9%.


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.

Toyota Motor (TM) was up 0.3% after it said that it will add 400 jobs at the plant in Princeton, Indiana, investing USD600 million to meet the strong and growing demand for the Highlander midsize SUV and modernise the entire plant. The investment will be used for retooling, new equipment and advanced technologies to make the plant more competitive. The project is scheduled to begin in fall 2019 and will add 40,000 Highlanders annually.

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 0.9%.

Abbott Laboratories (ABT) was down 0.2% after it reported Q4 adjusted earnings of $0.65 per share, up from $0.62 per share in the prior year period and came in line with the Street estimate provided by Capital IQ. Net sales were $5.33 billion, up from $5.19 billion reported for the same period last year but shy of the $5.38 billion Street estimate. The company expects adjusted earnings to range from $0.42 to $0.44 per share for Q1, below the $0.50 average estimate. For 2017, Abbott expects EPS from $2.40 to $2.50 per share, straddling the $2.43 estimate.

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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