ETF Preview: ETFs, Futures Lower As Weak Private-Sector Growth in the Eurozone Overshadows Improved Manufacturing in China; U.S. Housing Data, Flash PMI Still Ahead

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

SPDR S&P 500 ( SPY ): -0.77%

iShares S&P 500 ( IVV ): -0.78%

PowerShares QQQ ( QQQ ): -0.93%

iShares Russell 2000 ( IWM ): -1.40%

iShares Russell 1000 Growth ( IWF ): -0.97%

iShares MSCI Emerging Markets Index (EEM): -1.52%

United States Oil Fund (USO): -1.10%

SPDR Gold Shares (GLD): -0.20%

Select Financial Sector SPDRS (XLF): -0.68%

Tuesday's Pre-Market Most Active:

SPY, -0.36%

EEM, -0.40%

QQQ, -0.39%

IWM, -0.52%

GDX, +1.13%

Broad-Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, were mixed to lower. Actively traded PowerShares QQQ ( QQQ ) is down 0.4%.

U.S. stock futures were also heading into the negative territory early Tuesday, ahead of a number of economic data releases and speeches from Federal Reserve officials. The U.S. Markit 'flash' Purchasing Managers Index will be released at 9:45 am ET.

Minneapolis Fed President Narayana Kocherlakota will speak at a town hall forum at Northern Michigan University at 2 p.m. ET, while Kansas City Fed President Esther George will speak on the economy in Cheyenne, Wyoming at 9:15 p.m. ET.

Market sentiment was gloomy as investors mulled mixed economic data from around the globe. HSBC's flash manufacturing Purchasing Managers' Index showed China's manufacturing sector improved to 50.5 in September, from August's final reading of 50.2. It topped expectations for a drop to 50.0. Meanwhile, Markit's monthly composite purchasing managers index, which measures activity in the manufacturing and services sectors in the eurozone, fell to 52.3 in September from 52.5 in August--the lowest level so far this year.

Power Play: Industrial -

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

Mechel OAO (MTL) shares plunged for a second straight day, down 26% recently, on concerns that the Russian mining company will be forced to declare bankruptcy. Russia's economic minister Alexei Ulyukayev told Interfax that bankruptcy was "a probable scenario" after Mechel reportedly opposed a proposal from its three biggest lenders to convert part of the company's debt to shares, according to media reports. The company took debt to fund large projects right as the price of steel fell amid a supply glut.

Winners and Losers


Select Financial Sector SPDRs (XLF) was down 0.04%. Direxion Daily Financial Bull 3X shares (FAS) was down 0.7% while its bearish counterpart, FAZ was up 0.8%.

Parkway Properties (PKY) was down 0.1% after the real-estate investment trust priced the sale of 10 million common shares at $18.60 each, a discount of $0.09 per share to Monday's closing price. Underwriters have a 30-day option to purchase up to an additional 1.5 million shares of common stock at the public offering price. The company expects to raise net proceeds of $178.1 million, or $204.8 million if the underwriters exercise their option to purchase additional shares in full. PKY intends to use the proceeds to fund a portion of the purchase price of a portfolio of 22 properties located in six states and aggregating approximately 3.1 million net leasable square feet, or to repay debt.


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 also unchanged.

Semiconductor ETFs SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were also flat.

Google (GOOG) was down 0.6% as the European Union's competition chief said the European Commission has "fresh evidence and solid arguments against several aspects of the latest proposals put forward by Google," adding if the technology giant doesn't improve its proposals as requested, "the logical next step is to prepare a Statement of Objections." The proposals at issue seek to settle European Union concerns over Google's search practices. The Tuesday warning, made in a press release issued by Joaquin Almunia, vice president of the European Commission responsible for competition policy, noted the European Commission asked Google at the beginning of the month to improve the proposals.


Dow Jones U.S. Energy Fund (IYE) was flat, while Energy Select Sector SPDR (XLE) was off 0.01%.

Genesis Energy L.P (GEL) was down nearly 5% in recent pre-market trading as it announced the sale of 4 million units for $50.71 each. The midstream energy company said underwriters have a 30-day option to buy an additional 600,000 units. It plans to use net proceeds for general partnership purposes, including funding acquisitions or repaying a portion of the borrowings outstanding under our revolving credit facility.


Crude was down 1.03%. United States Oil Fund (USO) was up 0.9%. Natural gas futures was up 1.1%. United States Natural Gas Fund (UNG) was up 1.1%.

Gold was up 1.13% while silver was up 0.3% . Among rare metal funds, SPDR Gold Trust (GLD) was up 1.2% while iShares Silver Trust (SLV) was up 0.1%.


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

CarMax (KMX) was down 6.3% after the used-cars retailer reported fiscal Q2 adjusted earnings below analysts' consensus estimate despite higher-than-expected revenue. For the quarter ended Aug. 31, the company posted net earnings of $154.5 million, or $0.70 per diluted share, up from $140.3 million, or $0.62 per diluted share, a year earlier. However, the latest quarter's earnings included a benefit of $0.06 per share in connection with the receipt of settlement proceeds in a class-action lawsuit; excluding that, its earnings for the latest quarter were $0.64 per share, below the $0.67 expected on average by analysts polled by Capital IQ.

Net sales and operating revenue climbed to $3.60 billion from $3.25 billion a year earlier, topping analysts' mean estimate of $3.57 billion. Used-unit sales in comparable stores increased 0.2% while total used-unit sales rose 6.3% and total wholesale-unit sales increased 7.4%.

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 1.15%.

Salix Pharmaceuticals (SLXP) is in renewed talks to be acquired by Allergan (AGN), according to a report from The Wall Street Journal. Talks between the companies began in July as Allergan attempted to defend itself against a takeover by Valeant (VRX) but broke down because Salix wanted a higher price than Allergan wanted to pay, according to the report. Privately-held Actavis PLC also recently made a bid for Allergan but the offer was rejected. An Allergan acquisition of Salix would likely be valued at more than $10 billion in cash and could be announced late this week or next week, according to the report. Salix has agreed to merge with a unit of Italy's Cosmo Pharmaceuticals and plans to locate the combined company in Ireland for tax purposes. An agreement with Allergan could stop that deal, which is in danger of getting voted down by Salix shareholders. SLXP shares were up 8.60% while AGN shares were up 0.08%.

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.

In This Story


Other Topics


Latest Markets Videos