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ETF Preview: ETFs, Futures Mixed to Firmer as Small Business Sentiment Edged Higher; JOLTS Data Still Ahead

Active broad-market exchange-traded funds at the close of Monday's regular session:

SPDR S&P 500 ( SPY ): +0.29%

iShares S&P 500 ( IVV ): +0.31%

PowerShares QQQ ( QQQ ): +0.59%

iShares Russell 2000 ( IWM ): +0.95%

iShares Russell 1000 Growth ( IWF ): +0.51%

iShares MSCI Emerging Markets Index (EEM): +1.28%

United States Oil Fund (USO): +0.28%

SPDR Gold Shares (GLD): -0.18%

Select Financial Sector SPDRS (XLF): +0.09%

Tuesday's Pre-Market Movers

SPY, +0.11%

EEM, -0.41%

VXX, -0.69%

IWM, -0.16%

QQQ, +0.10%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV, were mixed to higher in Tuesday's pre-market trading . Actively traded PowerShares QQQ ( QQQ ) was up 0.10%.

U.S. stock futures were edging higher ahead of the open. Market sentiment was modestly upbeat following the National Federation of Independent Business' report that its small-business optimism index rose 0.7 points to a reading of 95.7, which showed sentiment was higher in July as business conditions and outlook for expansion improved.

Still ahead, Bureau of Labor Statistics is set to release its June job openings and labor turnover survey, or JOLTS, at 10 am ET.

Power Play: Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were unchanged. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was flat.

Intercept Pharmaceuticals (ICPT) surged 51.8% after it reported late Monday a swing to a Q2 net profit. Net income was $33.5 million, vs. a year ago loss of $13.5 million. Included in net income for Q2 was a $55.8 million non-cash gain recorded for the revaluation of all outstanding warrants which were exercised in April 2014.

The company also detailed some of its development programs, noting its NASH program phase 3 initiation is anticipated in the first-half of 2015, pending regulatory feed back, as is its phase 2 lipid metabolism trial initiation - anticipated in first half of 2015. It's PBC program phase 3 confirmatory trial protocol finalization is anticipated in Q3 2014, and pre-NDA and pre-MMA meetings are anticipated in Q4 of 2014, with completed filings anticipated in first half of 2015.

Leerink Swann upgraded ICPT's stock to an outperform rating from market perform, and boosted its price target to $445 from $270 a share, which represents a potential upside of 88% from its Monday close.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) was flat; Direxion Daily Financial Bull 3X shares (FAS) was down 0.01% and its bearish counterpart, Direxion Daily Financial Bear 3X shares (FAZ), was down 0.05%.

American depositary shares of Noah Holdings Limited (NOAH) were up over 3% after the company posted strong Q2 results that beat analysts' consensus estimates compiled by Capital IQ. The company, which provides wealth management services in China, posted Q2 adjusted net income attributable to shareholders of $24.6 million, or $0.44 per diluted ADS, up from $16.1 million, or $0.29 per diluted ADS. Analysts were expecting EPS of $0.33 per ADS.

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 flat.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were unchanged after posting losses in the previous session.

Nuance Communications (NUAN) was down nearly 8% after it reported late Monday Q3 earnings of $0.27 per share on revenue of $475.5 million, versus the Street view of $0.27 per share on $500 million in revenue, according to Capital IQ estimates. Nuance reported GAAP net loss of $54.2 million, or $0.17 per share, compared with GAAP net loss of $35.0 million, or $0.11 per share, a year prior.

Nuance also announced that it is calling for redemption the remaining $250 million aggregate principal amount of its 2.75% senior convertible debentures due 2027.

Energy

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) were both flat in pre-market trading.

Renesola (SOL) American Depositary Receipts were about 3% higher after the solar module manufacturer returned to profitability in Q2 ended June 30, resulting from stronger revenues and increased solar module shipments during the period. The company swung to net income of $0.8 million, or $0.01 per diluted ADS, from a net loss of $21.1 million, or $0.24 per diluted ADS, in the same period last year. This was due to a year-over-year increase in net revenues to $387.1 million from $377.4 million. Two analysts were expecting a $0.10 loss per diluted ADS and revenues of $401 million. Total solar module shipments were 498.7 megawatts versus 434.1 MW in Q2 2013. For Q3, total solar module shipments is targeted to be 530 MW to 550 MW.

Commodities

Crude was down 0.81%; natural gas was up 0.91%. United States Oil Fund (USO) was down 0.44%; United States Natural Gas Fund (UNG) was up0.36%.

Gold was up 0.37%, and silver was up 0.17%. Among rare metal funds, SPDR Gold Trust (GLD) was up 0.42% and iShares Silver Trust (SLV) was up 0.42%.

Consumer

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

Retail ETFs SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR), and Market Vectors Retail ETF (RTH) were also unchanged.

Kate Spade & Company (KATE) jumped 9% after raising its adjusted EBITDA guidance range for FY2014 and reporting better-than expected sales, although its Q2 loss failed to meet estimates for break-even. The designer of the fashion brand Kate Spade said its Q2 loss narrowed to $14 million or $0.11 per share from a loss of $24 million or $0.20 the year earlier. Sales jumped 48.7% to $266 million, exceeding the $237.4 million consensus estimate from analysts polled by Capital IQ. The company meanwhile raised its guidance for 2014 adjusted EBITDA to between $120 million to $130 million, up from the previous guidance between $115 million to $125 million.

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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