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ETF Preview: ETFs, Futures Maintain Modest Gains Following Revised Q3 GDP Growth Data

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

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

iShares MSCI Emerging Index Fund ( EEM ): -0.1%

VIX Short-Term Futures ETN Ipath ( VXX ): -2.8%

Market Vectors Gold Miners ETF ( GDX ): -0.2%

iShares China Large-Cap ETF ( FXI ): -0.6%

Broad-Market Indicators

Most broad-market exchange-traded funds, including SPY, IWM, IVV and others, inched higher. Meanwhile, actively traded PowerShares QQQ (QQQ) edged higher, up 0.3%.

U.S. stock futures held on to modest gains following the report that Q3 gross domestic product growth was revised to 2.1%. Forecasts had called for the GDP to be revised downward to 1.8% from the 2.1% previously released. Exports rose a 0.7% instead of the initially reported 0.9% and imports climbed 2.3% instead of the initially reported 2.1%.

In other economic data, home construction spending in Q3 rose at 8.2% pace, faster than the initially reported pace of 7.3%, according to the Commerce Department figures.

Power Play: Technology

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 flat in pre-market trading .

NetApp (NTAP) declined 5.7%, on track to sink below the 52-week low of $27.41, after it said late Monday that it will pay $870 million to acquire SolidFire, which makes all-flash storage systems built for next-generation data centers. The deal is expected to close in Q4 of fiscal 2016, NetApp said. SolidFire's products will be eventually be incorporated into NetApp for data management across flash, disk and cloud resources.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) was flat. Daily Financial Bull 3X shares (FAS) was up 0.5% and its bearish counterpart, FAZ, was down 0.1%.

Retail Properties of America (RPAI) said late Monday that it has obtained binding commitments for a $1.2 billion amended and restated unsecured credit facility. The funding is expected to close in January 2016, subject to the satisfaction of certain conditions, all of which are within the sole control of the company.

Energy

Dow Jones U.S. Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was up 0.6% in the pre-market session.

Energy Recovery (ERII), a pressure technology company, has won a $2.3 million order to supply its PX Pressure Exchanger technology for a desalination plant in China. Energy Recovery will partner with Beijing Originwater Technology on the project. The order is expected to ship during the Q2 2016. Energy Recovery will supply its PX-Q300 Pressure Exchanger devices for the Dongjiakou desalination plant, located in Shandong province in China.

Commodities

Crude was up 0.6%. United States Oil Fund (USO) was up 0.6%. Natural gas futures were down 1.6%. United States Natural Gas Fund (UNG) was down 2.3%. Gold was down 0.5% and SPDR Gold Trust (GLD) was down 0.3%. Silver was down 0.1% and iShares Silver Trust (SLV) was up 0.6%.

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 0.3%.

Express Scripts (ESRX) was up 3.3% after it said it expects 2016 earnings to grow by 10%-14% over the mid-point of the 2015 guidance, exceeding analysts' expectations. The pharmacy benefit management services said it expects 2016 adjusted earnings of $6.08 per share to $6.28 per share, well above the $6.05 average estimate from analysts polled by Capital IQ. For 2015, Express Script reaffirmed its previously issued guidance 2015 with adjusted EPS between $5.51 to $5.55, growth of 13% to 14% over 2014 and compared to the $5.53 average estimate.

Consumer

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.

ConAgra Foods (CAG) was up 1% after it reported a mixed bag in its second-quarter earnings report Tuesday morning as earnings topped expectations while revenues fell short. Per-share earnings totaled $0.71, up from analyst estimates of $0.59 and last year's $0.61 last year on a non-GAAP basis. Revenues came in at $3.09 billion, down from analyst projections of $3.12 billion and last year's second-quarter sales of $3.14 billion. The move was part of a $300 million restructuring plan that will help the company realize $300 million in efficiency benefits in the next three years. Of that, $200 million will come partly from lower headcount. The company expects to let between 1,000 and 1,500 people go, and layoffs already have started.

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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