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ETF Preview: ETFs, Futures Lower as Partial Government Shutdown Looms; Street Mulls Q3 GDP, Durable Goods Data

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

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

iShares MSCI Emerging Index Fund ( EEM ): +0.5%

SPDR Select Sector Fund - Financial ( XLF ): -0.3%

Invesco QQQ Trust, Series 1 ( QQQ ): +1.2%

iShares MSCI EAFE ETF ( EFA ): -0.0%

Broad Market Indicators

Broad-market exchange-traded funds, including IWM and IVV were higher. Actively traded PowerShares QQQ ( QQQ ) was up 1.2%.

US stock futures were lower ahead of the opening bell as a partial government shutdown looms and oil futures drop for the fifth time in six days. Wall Street is also digesting data on the Q3 gross domestic product (GDP) as well as durable goods.

The partial shutdown could happen should the Democrats and the Republicans in the Senate fail to come to a compromise over the border wall funding issue. Congress had approved a bill that sets more than $5 billion as funding for the border wall, but it is expected that the bill would not pass the Senate.

In economic data news, the third estimate of Q3 GDP showed an expansion of 3.4% versus estimates for 3.5%, unchanged from the second estimate.

Meanwhile, November durable goods orders increased 0.8% compared with forecasts for an increase of 1.4%. Excluding transportation, durable orders decreased by 0.3%. For the prior month, the durable goods reading was revised to a decline of 4.3% from a decline of 4.4%; excluding transportation, the prior-month figure was revised to an increase of 0.4% from an increase of 0.1%.

Looking ahead, personal income, consumer spending, and core inflation -- all for the month of November -- will be released at 10 am ET. At the same time, the December reading of the consumer sentiment index will also be reported.

Power Play: Health Care

Health Care SPDR (XLV) and other health care funds including Vanguard Health Care ETF (VHT) and iShares Dow Jones U.S. Healthcare (IYH) were flat in pre-market trade. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was also inactive.

Perrigo Company (PRGO) fell nearly 9% after it said late Thursday it will file an appeal with the Irish Tax Appeals Commission after the Irish Revenue Commissioners sought EUR1.64 billion ($1.9 billion) tax payment from company resulting from the sale of a stake in multiple sclerosis drug Tysabri intellectual property and related assets to Biogen (BIIB) in 2013. The deadline for filing an appeal is Dec. 28, 2018. The tax dispute is related to the sale by Elan, acquired by Perrigo in 2013, of its interests in Tysabri to Biogen, with Elan paying taxes on the profits from the deal at the corporation tax rate of 12.5%, while the Irish revenue agency said the company was liable at the trading income tax rate of 33%.

Winners and Losers

Financial

The Select Financial Sector SPDRs ( XLF ) was down 0.4%. Direxion Daily Financial Bull 3X shares (FAS) and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) were both quiet in pre-market trade.

Banco Macro (BMA) said late Thursday the board has approved the repurchase of up to ARS900 million ($23.7 million) common shares. Daily purchases will be limited to 25% of the daily average traded volume of the bank's shares during the previous 90 days.

Technology

Technology Select Sector SPDR ETF (XLK) and other tech funds iShares Dow Jones US Technology ETF (IYW) and iShares S&P North American Technology ETF (IGM) were inactive.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were both flat.

Amazon.com (AMZN) rose marginally after it said it has leased an additional 10 aircraft within its partnership with Air Transport Services Group (ATSG). The 10 additional cargo planes will consist of Boeing (BA) 767-300 aircraft and will join the online retailer's air cargo operation over the next two years. Amazon said it will open a new regional air hub next year at Fort Worth Alliance Airport, and that an air hub at the Cincinnati/Northern Kentucky International Airport will open in 2021. The company is also planning a gateway operation to launch in Wilmington, Ohio, in 2019 and an expanded operation in Rockford, Ill. Amazon previously leased 40 Boeing 767 freighter aircraft in 2016, 20 of those with ATSG, all of which are serving customers in the Amazon Air network.

Energy

Dow Jones US Energy Fund (IYE) was inactive and Energy Select Sector SPDR (XLE) was down 1.4% in pre-market trade.

Ultra Petroleum (UPL) rose more than 4% as the natural gas reserves developer said it expects to close on transactions that will reduce long-term debt by at least $235 million before year-end. Ultra Petroleum's consolidated net leverage ratio will decrease to 3.5x from 3.9x as a result of the transactions. The company modified terms of the exchange agreement disclosed Oct. 17. It has agreed to exchange approximately $505 million of its 6.875% senior notes due 2022 and $275 million of its 7.125% senior notes due 2025 for new 9.00% cash / 2% payment in-kind senior secured second lien notes due July 2024 and new warrants for one common share. The transactions will extend the maturity of the exchanged 2022 notes to July 2024, leaving about $195 million in 2022 notes. Ultra Petroleum said it will retain the ability to exchange an additional $54.8 million of notes within a year on the same or more favorable terms.

Commodities

Crude was down 0.5%. United States Oil Fund (USO) was down 1.7%. Natural gas was up 0.9% while the United States Natural Gas Fund (UNG) was down 1%.

Gold was down 0.4%. SPDR Gold Trust (GLD) was up 0.1%. Silver was down 0.8%, while iShares Silver Trust (SLV) was up 0.4%

Consumer

Consumer Staples Select Sector SPDR (XLP) and Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones U.S. Consumer Goods (IYK) were inactive.

Consumer Discretionary Select Sector SPDR (XLY) and retail funds SPDR S&P Retail (XRT) and Market Vectors Retail ETF (RTH) were quiet in pre-market trade.

Nike (NKE) rose more than 8% after the company reported late Thursday fiscal Q2 earnings of $0.52 per share, compared with the prior-year period's $0.46 per share. Analysts polled by Capital IQ were expecting EPS of $0.46. Revenue was $9.37 billion, up 10% from $8.55 million in the same quarter last year. The Street view was for revenue of $9.17 billion.

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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