ETF Preview: ETFs, Futures Mixed to Higher as North Korea's Latest Nuclear Test Stir Up Tensions Again; Factory Orders Still Ahead

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

iShares MSCI Emerging Index Fund ( EEM ): -1%

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

SPDR Select Sector Fund - Financial ( XLF ): -0.4%

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

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.2%

Broad Market Indicators

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

U.S. stock futures were mixed to higher after the long Labor Day weekend, welcomed by renewed tensions in the Korean peninsula, following reports of North Korea's most powerful nuclear test over the weekend.

Looking ahead, factory orders for the month of July will be released at 10 am ET, with expectations for a decline of 3.1% vs a prior gain of 3%, according to data compiled by Econoday.

Oil prices nudged higher as some U.S. refineries started to become operational again in the aftermath of hurricane Harvey.

Power Play: Health Care

Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were flat in pre-market trading . Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was also inactive.

Cellect Biotechnology (APOP) was higher 31% after the company said the U.S. Food and Drug Administration has granted orphan drug designation to its ApoGraft for the prevention of acute and chronic graft versus host disease in transplant patients. In graft versus host disease, the transplanted immune mature cells, particularly in bone-marrow transplants, attack the body of the patient receiving the transplant, sometimes resulting in death. Cellect said its ApoGraft therapy was designed to eliminate immune responses in any transplantation of foreign cells and tissues.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was down 0.4%. Direxion Daily Financial Bull 3X shares (FAS) was down 0.4% while its bearish counterpart, FAZ, was down 1.4%.

FS Bancorp (FSBW), the holding company for 1st Security Bank of Washington, said it has initiated an underwritten public offering of approximately $20 million of its common stock. The company said it expects to grant the underwriters a 30-day option to purchase an additional 15% of the offered amount of common stock from the company to cover any over-allotments. FS Bancorp said it will use the net proceeds from the offering for general corporate purposes, including to contribute to the capital of the 1st Security Bank of Washington to support its lending and investing activities, to support or fund acquisitions of other institutions or branches, and if opportunities for such transactions become available.


Technology Select Sector SPDR ETF (XLK) was down 0.2% in pre-market trading while other tech funds 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.

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

ABB (ABB) said late Friday that it formed a technology collaboration with Amazon (AMZN) to allow consumers to use the ABB-free@home on a control panel via Amazon's Alexa. The integrated solution enables voice control of up to 65 functions within ABB-free@home, as well as through myABB Living Space online platform or app. ABB offers its own voice activation feature for consumers who do not choose to use Alexa. ABB ADRs were up 1.8% and AMZN shares were down 0.3%.


Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) was up 0.1%.

Patterson-UTI Energy (PTEN) was up more than 3% after it said that Andy Smith has been appointed as its new CFO, effective Sept. 8, succeeding John Vollmer, who announced in May that he would retire. Smith most recently served as CFO of Kirby Corporation. The company also said it has agreed to acquire Multi-Shot, LLC d/b/a MS Energy Services, a directional drilling services company, for 8.8 million shares and $75 million of cash, valuing MS as about $215 million.


Crude was up 1.5%. United States Oil Fund (USO) was up 1.5%. Natural gas was down 2.8% while United States Natural Gas Fund (UNG) was down 2.2%. Gasoline futures fell 3.4% and United States Gasoline Fund (UGA) was down 3.7%.

Gold was up 0.5%. SPDR Gold Trust (GLD) was up 0.3%. Silver was up 0.5% while iShares Silver Trust (SLV) was up 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.

Fiat Chrysler Automobiles N.V (FCAU) was down 0.6% after Reuters reported CEO Sergio Marchionne said the company has not received any offer for the company nor is the car maker working on any "big deal.", Marchionne made the comments on the sidelines of the Italian Formula One Grand Prix on Saturday, the report said. Marchionne also said the focus remains on executing the company's business plan to 2018, according to the report.

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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