ETF Preview: ETFs, Futures Mixed as Economic Growth Slows, Durable Orders Decline

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

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

VelocityShares 3X Inverse Natural Gas ETN ( DGAZ ): +1.3%

VanEck Vectors Gold Miners ETF ( GDX ): -0.7%

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

Direxion Daily Junior Gold Miners Index Bull 3X Shares ( JNUG ): -2.9%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV edged higher. Actively traded PowerShares QQQ (QQQ) was up 0.1%.

U.S. stock futures were mixed, with the Dow Industrial Average in positive territory while the S&P 500 and Nasdaq were lower, after data that showed economic growth slowed to an annual rate of just 1.9% rattling Wall Street investors.

Meanwhile, durable goods orders fell 0.4% last month, well below expectations for an increase of 2.6%. Excluding a 2.2% decline in transportation-related orders, durable goods orders increased an as-expected 0.5%, while November was revised higher to +1.0% from +0.5% previously.

Markets continued to digest a flurry of Q4 results. Starbucks (SBUX) and Alphabet (GOOG, GOOGL) reported mixed results, and Microsoft's (MSFT) results came in well above expectations. Meanwhile American Airlines (AAL) crushed earnings estimates, driving the entire airline sector higher in premarket trading .

Still ahead, consumer sentiment for January will be reported at 10 an ET.

Power Play: Technology

Tech funds 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 quiet in pre-market trading . SPDR S&P International Technology Sector ETF (IPK) was flat.

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

Alphabet (GOOGL) was down 0.5% after it reported late Thursday Q4 revenue of $26 billion, up from $21.3 billion in the year ago quarter and better than the analyst consensus of $25 billion on Capital IQ. Earnings were $9.36 per share, up from $8.67 per share last year but below expectations of $9.62 per share.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was up 0.3%. Direxion Daily Financial Bull 3X shares (FAS) was up 0.1% and its bearish counterpart, FAZ was flat.

Franklin Resources (BEN) reported Q1 EPS of $0.77, versus $0.74 last year. This beat the $0.68 Capital IQ estimate. Revenue for the quarter came in at $1.56 billion, versus $1.76 billion last year. This missed the $1.59 billion Capital IQ consensus.


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

American Airlines Group (AAL) was up 2% after it reported a Q4 adjusted earnings of $1.48 per diluted share compared with an income of $2 per share a year ago, beating the $0.92 average EPS estimate from analysts polled by Capital IQ. Sales rose to $9.79 billion from $9.63 billion a year ago, coming in above the $9.75 billion consensus estimate.


Dow Jones U.S. Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was up 0.1% in pre-market trade.

GasLog Partners LP (GLOP) was up 1.2% after it reported Q4 earnings of $0.59 per share, compared with the prior-year period's $0.62 per share. Analysts polled by Capital IQ were expecting EPS of $0.55. Revenue was $58.2 million, up from $57.9 million in the same quarter last year. The Street view was for revenue of $53.9 million. The company said its demand outlook for LNG carriers with long-term charters remains positive. It continues to see tenders for multi-year charters for vessels, which they expect will be used to transport volumes from new liquefaction facilities coming online over the coming years. The company believes that these new LNG volumes will create demand for additional ships over and above those available in the market today.


Crude was down 0.5%. United States Oil Fund (USO) was down 0.7%. Natural gas was down 2% while United States Natural Gas Fund (UNG) was down 2%.

Gold was down 0.6%. SPDR Gold Trust (GLD) was down 0.9%. Silver was down 1% while iShares Silver Trust SLV) was down 1%.


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

Consumer Discretionary Select Sector SPDR (XLY) and retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were also flat.

Starbucks (SBUX) fell 4.1% after the coffee retailer reported late Thursday fiscal Q1 EPS increased to $0.52 in the 13-week ended Jan. 1, from $0.46 in the year-earlier period. That met the $0.52 average estimate of analysts surveyed by Capital IQ. Q1 revenue rose 7% to $5.7 billion. That lagged behind the analyst consensus of $5.85 billion. Moving forward, the company anticipates 2017 revenue growth in the range of 8% to 10%, and projects non-GAAP EPS in the range of $2.12 to $2.14. Analysts expected revenue growth of 8.5% and non-GAAP EPS of $2.14.

Health Care

Health care funds 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 flat.

Celgene (CELG) was up 1.2% after it said the European Medicines Agency's Committee for Medicinal Products for Human Use has adopted a positive opinion for use of Revlimid as monotherapy for the maintenance and treatment of adult patients with newly diagnosed multiple myeloma. The recommendation moves the company a step closer to gaining final approval from the EMA for the drug.

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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