ETF Preview: ETFs, Futures Lower Following FOMC Rate Hike; Street Digests Economic Data

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

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

VanEck Vectors Gold Miners ETF ( GDX ): -2.8%

SPDR S&P 500 ( SPY ): +0.1%

Direxion Daily Gold Miners Index Bull 3X Shares ( NUGT ): -10%

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): -1.6%

Broad-Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, inched higher. Actively traded PowerShares QQQ (QQQ) was up 0.04%.

U.S. stock futures were lower following the Federal Open Market Committee decision to raise U.S. interest rates 25 basis points, which sent the dollar soaring, and Treasury yields as much as 5 basis point higher.

Investors are also digesting a slew of economic data. Initial weekly jobless claims fell 4,000 to 254,000 from an unrevised 258,000 in the week before and a touch better than the 255,000 expected. Continuing claims rose 11,000 to 2.018 million from 2.007 million in the last week.

The consumer price index (CPI) rose 0.2% in November with the core, ex-food and energy, input rate also up 0.2%. There were no revisions to October's 0.4% headline increase and the 0.1% gain in the ex-food and energy figure.

The New York Empire State manufacturing index increased to 9.0 in December versus an expected 3.0, after rebounding 8.3 points to 1.5 in November -- just inside this year's range of -19.4 to 9.6, but the components were mixed.

Meanwhile, the Philly Fed manufacturing business index bounced 13.9 points to 21.5 in December, more than doubling the 10.0 expected. The December reading fell from 2.1 points to 7.6 in November and 3.1 points to 9.7 in October.

Still ahead, Markit's flash Manufacturing Purchasing Managers' Index (PMI) will be reported at 9:45 am and the November home builders' index will be released at 10 am ET.

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 up 0.2%.

Catalyst Biosciences (CBIO) was up 74.7% after the biopharmaceutical company said it has agreed to collaborate with Pfizer (PFE) subsidiary Wyeth on the development of human Factor VIIa products. Wyeth granted Catalyst an exclusive license to the proprietary rights on Factor VIIa variants CB 813a and CB 813d so it can research, develop, manufacture and commercialize the products. Catalyst agreed to make payments up to $17.5 million when milestones are achieved. Following commercialization of any product Wyeth would also receive a single-digit royalty on net product sales.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was up 0.7%. Daily Financial Bull 3X shares (FAS) was down 0.3% and its bearish counterpart, FAZ was up 0.9%.

KKR (KKR) rose 2.9% after it said it has reached a deal to sell Capsugel, a manufacturer of hard gelatin capsules, to Swiss pharmaceutical supplier Lonza for $5.5 billion in cash. Lonza will refinance existing Capsugel debt of approximately $2 billion with a combination of debt and equity financing. The transaction is expected to close in Q2.


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 down 0.2%.

Semiconductor ETFs SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were flat in pre-market trading .

Nokia (NOK) was down 0.2% after it said that it plans to acquire U.S.-based Deepfield, a provider of analytics for IP network performance management and security. Terms of the transaction were not disclosed.


Dow Jones U.S. Energy Fund (IYE) was flat and Energy Select Sector SPDR (XLE) was down 0.4% in pre-market trading.

Stone Energy (SGY) plummeted 20% after the company revealed late Wednesday that it had filed for chapter 11 bankruptcy relief. The filing came as the company hopes to pursue a reorganization effort. The company and its subsidiaries agreed upon a new restructuring support agreement. The note holders, who owns the company's 1.75% senior convertible notes due in 2017 or 7.5% senior notes due in 2022, will receive a pro rata share of $100 million in cash, 96% of the stock in organized Stone Energy and $225 million of new 7.5% second lien notes, due in 2022. Additionally, the new agreement allows for all shareholders to receive a pro rata share of 4% of the reorganized stock and up to 10% of the post-petition equity exercisable once the company hits a variety of benchmarks. The company said it plans to eliminate about $1.2 billion in outstanding debt is the plan is implemented.


Crude was down 0.9% while natural gas futures was down 0.6%. United States Oil Fund (USO) was down 1.3% and United States Natural Gas Fund (UNG) was up 1.8%.

Gold was down 2.7% and SPDR Gold Trust (GLD) was up 1%. Silver was down 6.7% while iShares Silver Trust (SLV) was down 4.7%.


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.

Sanderson Farms (SAFM) was up 5.3% after the company reported mixed fiscal Q4 results, with earnings well above expectations on higher revenues that were shy of views compiled by Capital IQ. For Q4 ended Oct. 31, the poultry company said EPS was $3.36 per share, up from $1.22 per share, beating the $2.55 per share consensus. Revenues rose to $790.8 million from $679.6 million in the year-ago quarter but narrowly missed the $795.3 million average 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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