ETF Preview: ETFs, Futures Lower Ahead of Speeches from Fed Officials, Consumer Credit Data

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

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

iShares MSCI Emerging Index Fund ( EEM ): -0.4%

SPDR Select Sector Fund - Financial ( XLF ): -0.4%

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.1%

SPDR Select Sector Fund - Utilities ( XLU ): -0.02%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV edged lower. Actively traded PowerShares QQQ ( QQQ ) was down 0.1%.

US stock futures were pointing to a lower open as earnings season begins this week, with investors looking ahead to speeches from a few officers from the Federal Reserve as well as consumer credit data later in the afternoon.

Boston Fed President Eric Rosengren will give a speech at 4 pm ET; Atlanta Fed President Raphael Bostic, at 12:40 pm ET; and San Francisco Fed President John Williams, at 1:35 pm ET. All three officials are voting members.

At 3 pm, data are expected to show consumer credit rising $18 billion in November as compared to the $20.5 billion increase in October, according to data compiled by Econoday.

Power Play: Technology

Technology Select Sector SPDR ETF (XLK) was down 0.1% while 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 both inactive.

Micro Focus International (MFGP, MCRO.L) fell more than 16% after the software company disclosed a decline in sales in the six month period to Oct. 31 when the contribution from a recently acquired software unit of Hewlett Packard Enterprise was stripped out of the equation. Sales at Micro Focus declined by 2.9% to $664.7 million in the six months ended Oct. 31, when Hewlett Packard's contribution to reported revenues of $569.8 million was excluded. When this contribution was factored in, sales were up by 80.3% to $1.23 billion. Profit in the six month period rose to $106.6 million from $90.6 million in the prior-year period and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was up by 67.7% from the comparable period of the prior year.

Micro Focus also disclosed a management shake-up of sorts. It named Chris Kennedy, previously the chief financial officer of ARM Holdings (ARM) and easyJet (EZJ), as its new chief financial officer, replacing Mike Phillips, who has been moved to a newly created role - director for mergers and acquisitions.

Winners and Losers


The Select Financial Sector SPDRs ( XLF ) was down 0.4%. Direxion Daily Financial Bull 3X shares (FAS) was down 0.1% and its bearish counterpart FAZ was up 0.7%

Diamondrock Hospitality (DRH), a self-advised real estate investment trust, said pre-market Monday that chief financial officer Sean Mahoney will leave the company on March 31 "to pursue other opportunities." DiamondRock said in a statement that his departure is not related to any issues involving the company's financial results. The company said it has engaged Spencer Stuart to consult a nationwide search for a successor.


Dow Jones US Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was up 0.03%.

Royal Dutch Shell (RDS.A) CEO Ben van Beurden told the Financial Times in an interview published Monday that the growth of the company's oil and gas operations over the next ten years "will depend on shale production". The report added that van Beurden said the company would probably want to keep investing in shale "because we will really want to grow this business quite quickly."


Crude was up 0.4%. United States Oil Fund (USO) was up 0.1%. Natural gas was up 0.9% while United States Natural Gas Fund (UNG) was up 1.2%.

Gold was down 0.1%. SPDR Gold Trust (GLD) was down 0.02%. Silver was down 0.5%, while iShares Silver Trust (SLV) was down 0.3%.

Health Care

Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were quiet. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.2%.

Matinas BioPharma Holdings Inc. (MTNB) rose more than 13% after it reported positive data from a third patient enrolled in a phase 2a clinical study of its lead anti-infective product candidate MAT2203 to treat chronic refractory mucocutaneous candidiasis (CMC) infection. The company said MAT2203 was well tolerated with any adverse events observed being mild in severity and unrelated to study drug. As a result of the third positive response, the study has met its statistical hurdle for success.


Consumer Staples Select Sector SPDR (XLP), 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 also quiet in pre-market trade.

Crocs (CROX) gained 4% after it updated Q4 and full-year revenue guidance ahead of its presentation at the 20th Annual ICR Conference. The company is increasing its previous Q4 revenue guidance to between $195 and $198 million from between $180 and $190 million. This is ahead of the $186.7 million Street view. The company continues to expect 2017 revenue to be down low single digits compared with $1.036 billion in 2016. The Street is at $1.01 billion, which represents a decrease of approximately 3%.

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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