ETF Preview: ETFs, Futures Mixed to Higher Following US Trade Deficit, Case-Shiller Data

Active broad-market exchange-traded funds ahead of Tuesday's regular session:

VelocityShares 3x Long Natural Gas ETN ( UGAZ ):-3.5%

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

SPDR S&P 500 ( SPY ): + 0.2%

United States Natural Gas Fund LP ( UNG ): +0.2%

VanEck Vectors Gold Miners ETF ( GDX ): -0.1%

Broad Market Indicators

Broad-market exchange-traded funds, including IWM and IVV were lower. Actively traded PowerShares QQQ (QQQ) was up 0.4% and SPDR S&P 500 SPY was marginally higher.

US stock futures were mixed to higher, with the Dow Industrials pointing higher while the S&P 500 and the Nasdaq were poised for modest losses. Investors are looking ahead to a number of Federal Reserve speeches and economic releases, including Senate confirmation hearing of Jerome Powell, President Donald Trump's choice to head the Federal Receive.

In economic data, October advance trade in goods deficit widened to -$68.3 billion, larger than forecast. Goods exports fell 1.0% to $129.1 billion and goods imports increased 1.5% to $197.4 billion.

Meanwhile, the S&P/Case-Shiller national index rose a seasonally adjusted 0.7% in September, and was up 6.2% year over year. Forecasts were for a 0.4% monthly increase and a 6.2% yearly increase.

Looking ahead, the November reading of consumer confidence index will be reported at 10 am ET.

Philadelphia Fed President Patrick Harker will give a speech at 9 am ET, while New York Fed President William Dudley will give the opening remarks at a conference on the US Treasury markets at 9:15 am ET.

Power Play: Consumer

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

Meanwhile, 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.

Buffalo Wild Wings (BWLD) rose 6.5% after it said it has been acquired by Arby's Restaurant Group for $157 a share in a transaction valued at $2.9 billion that includes BWLD's net debt. The transaction has been approved by both companies' boards of directors. Arby's CEO Paul Brown called Buffalo Wild Wings "distinctive and successful" and said he looks forward to "leveraging the combined strengths of both organizations into a truly differentiated and transformative multi-brand restaurant company." Arby's Restaurant Group is majority owned by Atlanta-based private equity firm Roark Capital Group,

Winners and Losers


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

In sector news, Social Reality (SRAX) rose 7% after it said it plans to pay a one-time cryptocurrency dividend to all of its shareholders as part of the company's planned Initial Coin Offering (ICO). The dividend will be paid in the form of a BIGtoken, a secured digital token, which the company intends to link to its BIG Platform and register with the Securities and Exchange Commission. The exact record date and any conditions related to receiving the dividend, or if a dividend will ultimately be paid at all, will be determined at such time as the company is ready to launch its BIG Platform, according to a statement. The company wants "all of our shareholders to have the benefit of participating as BIGtoken cryptocurrency owners," CEO Christopher Miglino said.


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 inactive.

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

In sector news, Momo (MOMO) American depositary shares fell 8% after the operator of a social networking platform reported Tuesday Q3 adjusted profit of $0.45 per ADS, up from $0.24 in the prior year period. Analysts polled by Capital IQ had expected $0.38. Net revenue was $354.5 million, up from $157 million reported for the same period last year. The Street estimate was for revenue of $342.5 million. For Q4, the company expects net revenue to range from $370 million to $385 million. The Street estimate calls for revenue of $380.5 million.


Dow Jones US Energy Fund (IYE) was quiet in pre-market trading and Energy Select Sector SPDR (XLE) was down 0.1%.

Carrizo Oil & Gas (CRZO) said it plans to redeem about 25%, or $150 million, of its 7.50% senior notes due 2020, on Dec. 28. The oil-and-gas driller, active in the Eagle Ford and Permian Basin fields of the US, said the notes will be redeemed at 101.875% of the principal amount, plus accrued interest. Carrizo OIl & Gas said the funds for the redemption are primarily proceeds from its previously announced divestiture program, including the sale of properties in the Marcellus Shale and Utica Shale. The company said the redemption is consistent with its plan to reduce leverage, and it plans to continue leverage reduction in 2018.


Crude was down 0.7%. United States Oil Fund (USO) was down 0.5%. Natural gas was up 1.9% while United States Natural Gas Fund ( UNG ) was up 1.3%

Gold was up 0.1%. SPDR Gold Trust (GLD) was up 0.2%. Silver was up 0.2%, while iShares Silver Trust (SLV) was flat.

Health Care

Health care funds Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH), were firmer. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.02%.

Auris Medical (EARS) shares fell 55% after the company said Tuesday that a phase 3 clinical trial on AM-111 for the treatment of sudden deafness failed to meet its primary endpoint of a statistically significant improvement in hearing from baseline to day 28 compared with a placebo for either active treatment groups. Based on the finding, the company has concluded that the very similar design of the currently ongoing ASSENT trial is no longer adequate for testing AM-111. Therefore, the ASSENT trial will be terminated early.

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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