ETF Preview: ETFs, Futures Lower as April Jobs Report Misses Expectations; Unemployment Remains at 5%

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

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

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

Market Vectors Gold Miners ETF ( GDX ): +2.2%

iPath S&P 500 VIX ST Futures ETN ( VXX ): +0.5%

ProShares Trust Ultra VIX Short Term Futures ETF ( UVXY ): +0.9%

Broad-Market Indicators

Most broad-market exchange-traded funds, including SPY, IWM, IVV and others, were weaker. Actively traded PowerShares QQQ (QQQ) was down 0.3%.

U.S. stocks were lower ahead of Friday's open following the government's report that th U.S. economy added 160,000 jobs, well below expectations for a 203,000 increase in new nonfarm jobs and the smallest increase since September The disappointing figure could imply that the economy has yet to get over the so called early-year chill.

Meanwhile, the unemployment rate was flat at 5%. Also, average wages rose 0.3% to $25.53 an hour. Hourly pay rose 2.5% in the past 12 months, up from 2.3%.

Employment gains for March and February were revised downward - the government now says 208,000 new jobs were created in March instead of the initially reported 215,000; The February figure was cut to 233,000 from 245,000.

Power Play: 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 0.1%.

KemPharm (KMPH) was down 42.6% in pre-market trading after a committee of the U.S. Food and Drug Administration voted against abuse deterrent labeling for its pain management drug Apadaz. The committee did vote in favor of approving the drug for its proposed indication of the management of acute pain that requires an opioid.

Winners and Losers


Select Financial Sector SPDRs (XLF) was down 0.1%. Daily Financial Bull 3X shares (FAS) was down 1.4% while its bearish counterpart, FAZ, was down 0.7%.

Weyerhaeuser (WY) reported Q1 adjusted net income of $150 million, or $0.24 per share , ex one-time items, versus $99 million or $0.19 per share in the same quarter the previous year. Revenue was $1.84 billion, up from $1.72 billion in the same quarter last year. Analysts polled by Capital IQ were expecting EPS of $0.20 on revenue of $1.97 billion. Weyerhaeuser anticipates comparable earnings and higher adjusted EBITDA from the Timberlands segment in Q2.


Technology Select Sector SPDR ETF (XLK), Shares 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.

Apple Inc (AAPL) Chief Executive Tim Cook plans to visit Beijing later this month to meet high-level government officials, Reuters reports, citing unnamed sources. He plans to meet senior government and Communist Party leaders - including officials in charge of propaganda, it said. The report noted the time comes amid a serious of problems for the tech giant in its second-largest market, including the loss of an iPhone trademark dispute and the suspension of some of its online entertainment services.


Dow Jones U.S. Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was down 0.5% in the pre-market session.

Buckeye Partners (BPL) reported weaker-than-expected results for Q1 2016 but said it expects to raise quarterly dividends for the remainder of the year. Net income was $135 million, or $1.01 per diluted share, compared to last year's $112 million, or $0.88 per diluted share. The Capital IQ consensus was for $1.03. Revenues for the period were $780.6 million versus $1.09 billion a year earlier. The mean estimate was for $1 billion.


Crude was down 1.4% while natural gas futures were down 0.6%. United States Oil Fund (USO) was down 0.9% and United States Natural Gas Fund (UNG) was down 1.6%.

Gold was up 1.6% and SPDR Gold Trust (GLD) was up 1.2%. Silver was up 1% while iShares Silver Trust (SLV) was up 0.7%.


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

Revlon (REV) reported Q1 adjusted net income jumped to $0.25 per diluted share from $0.01 a year ago while its revenue was near unchanged at $439.6 million from $438.5 million a year earlier. The maker of beauty and personal care products said its reported net income was $11 million or $0.21 per diluted share compared to a loss of $0.09 million or $0.02 in the year ago period. The year earlier included $15.9 million in losses on foreign currency. No analyst estimates were available for comparison.

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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