ETF Preview: ETFs, Futures Mixed as Geopolitical Issues, Global Growth Slowdown Weigh; JOLTS Report Still Ahead

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

VanEck Vectors Gold Miners ETF ( GDX ): +1%

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

iShares MSCI Emerging Index Fund ( EEM ): +0.2%

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): +0.1%

United States Oil Fund ( USO ): +0.1%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV edged lower. Actively traded PowerShares QQQ (QQQ) was down 0.2%.

U.S. stock futures were mixed to higher as simmering geopolitical tensions with North Korea as well as lackluster trade data from China and Germany put pressure on global markets. However, upbeat earnings from the retail sector - specifically from CVS (CVS), Michael Kors (KORS) and Ralph Lauren (RL) - could help buoy market sentiment.

Looking ahead, at 10 am ET, the job openings and labor turnover survey (JOLTS) is expected to show a slight decline to 5.600 million from 5.666 million in May.

Meanwhile, crude oil futures were modestly higher on reports that Saudi Arabia intends to cut exports to Asia next month. Traders are expected to keep an eye on the Organization of the Petroleum Exporting Countries, which will conclude its two-day meeting in Abu Dhabi, and the weekly API inventory report, which will be released at 4:30 pm ET.

Power Play: Health Care

Health care funds Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH), were quiet. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.3%.

Durect (DRRX) jumped almost 8% after the company said Orient Pharma Co., Ltd., its licensee for certain Asian and South Pacific countries, reported that a phase 3 clinical study of oradur-methylphenidate ER capsule conducted in Taiwan has achieved positive results in treating attention deficit hyperactivity disorder (ADHD). This study was designed to demonstrate the efficacy and safety of oradur-methylphenidate ER capsule in children and adolescents with ADHD aged 6 to 18 years. For the primary efficacy endpoint, oradur-methylphenidate ER capsule was superior to placebo in a statistically significant manner. There were no serious adverse events in this pivotal study.

Winners and Losers


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

Wells Fargo & Company (WFC) was down 0.3% after the New York Times said the company is facing new regulatory scrutiny for allegedly not refunding insurance money owed to customers who paid off car loans early. The bank also reportedly failed to refund the insurance money to customers whose cars were repossessed by increasing what they owed, said.


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 flat. SPDR S&P International Technology Sector ETF (IPK) was quiet.

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

Ebix (EBIX) was up 1.7% after the company said Q2 revenue rose 20.4% to $87.4 million from the year-ago period and topped the CapIQ mean for $81.8 million. Earnings increased 6% to $0.74 per share from last year and beat expectations for $0.70.


Dow Jones U.S. Energy Fund (IYE) was inactive and Energy Select Sector SPDR (XLE) was down 1%.

Carrizo Oil & Gas (CRZO) down 1.2% after it reported Q2 adjusted net income per diluted share of $0.30, up from $0.29 for the same period last year, and ahead of the Capital IQ consensus forecast of $0.24. The company reported quarterly total revenues of $166.5 million, up from $107.3 million for the year-ago quarter, and surpassing the analyst forecast of $163.2 million. Carrizo said that based on changes to the planned drilling and completion schedule, it is lowering its 2017 oil production guidance to 34,600-34,800 Bbls/d from 35,700-36,000 Bbls/d previously.


Crude was up 0.2%. United States Oil Fund ( USO ) was down 0.1%. Natural gas was up 0.1% while United States Natural Gas Fund (UNG) was up 0.2%.

Gold was up 0.2%. SPDR Gold Trust (GLD) was up 0.5%. Silver was up 0.8% while iShares Silver Trust (SLV) was up 1.1%.


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

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 flat.

Ralph Lauren (RL) rose 5.2% after the company said Q1 ended July 1 adjusted EPS were $1.11, above the CapIQ mean for $0.94 and the year-ago period's $1.06. Net revenue decreased by 13% to $1.35 billion from last year and just above expectations for $1.34 billion. For the year, it continues to expect net revenue to decrease 8% to 9%, excluding the impact of foreign currency. It expects Q2 net revenue to be down 9%-10%, excluding the impact of foreign currency.

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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