ETF Preview: ETFs, Futures Mixed to Lower Following Tillerson Exit as Secretary of State; Street Mulls CPI Data

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

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

SPDR Select Sector Fund - Financial ( XLF ): +0.1%

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

PowerShares QQQ Trust, Series 1 ( QQQ ): +0.1%

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

Broad Market Indicators

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

US stock futures were mixed to lower following news that Rex Tillerson is resigning from his position as secretary of state, and that President Donald Trump has named Mike Pompeo, director of the Central Intelligence Agency, as Tillerson's replacement. Tillerson had reportedly disapproved of the potential meeting between Trump and North Korean leader Kim Jong Un.

In economic data news, the February National Federation of Independent Business small business optimism index rose 0.7 points to 107.6 -- the second highest level n the report's 45-year history, from 106.9 in January.

Meanwhile, the consumer price index rose 0.2% in February after a 0.5% increase in January, and compared with forecasts for a 0.2% advance.

Power Play: Health Care

Health Care SPDR (XLV) was up 0.6% and other health care funds Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were quiet. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.4%.

Pacific Biosciences of California (PACB) was up more than 5% after it reported that the US Patent and Trademark Office (USPTO) has issued the company a patent covering novel methods for single molecule sequencing of concatemers having complementary sense and antisense regions of a nucleic acid sample. The company said methods of the patent represent an alternate approach for achieving higher accuracy in single molecule sequencing processes, including those performed using a nanopore sensor, and are related to Pacific Biosciences' unique Circular Consensus Sequencing approach for generating high intra-molecular consensus.

Winners and Losers


The Select Financial Sector SPDRs ( XLF ) was up 0.1%. Direxion Daily Financial Bull 3X shares (FAS) was inactive while its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was down 0.7%.

Yintech Investment (YIN) reported non-GAAP diluted EPS of RMB0.81 ($0.13) for Q4, down sharply from last year's RMB6.69. Revenue fell year-over-year to RMB386.1 million from RMB1.06 billion. For Q1, the company expects revenue in the range of RMB260 million to RMB280 million compared to RMB402.9 million in the year-ago period. The company will be paying a dividend of $0.40 per ADS on or around April 9 to shareholders of record as of the close of business on March 27.


Technology Select Sector SPDR ETF (XLK) was up 0.4% and 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 quiet.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was flat while Semiconductor Sector Index Fund (SOXX) was up 0.7%.

Coupa Software (COUP) rose nearly 1% after it said late Monday fiscal Q4 revenue was $53.8 million, up 41% from $33.8 million in the year-ago period. Anlaysts polled by Capital IQ were expecting revenue of $48.64 million. Net income for the quarter ended Jan. 31 was $0.02 per share, compared to net loss of $0.05 per share in the year-ago period. Analysts polled by Capital IQ were execting net loss of $0.15 per share. The company expects Q1 revenue to be between $51.0 and $51.5 million and full-year revenue to be between $227 and $230 million, above Q1 expectation of $49.51 million and in-line with full-year estimate of $227 million. Net income for Q1 is expected to be between $0.11 loss and $0.13 loss per share and full-year net income to be between $0.23 loss and $0.28 loss per share, in-line with Q1 estimate of $0.11 loss per share and narrower than the full-year estimate of $0.29 loss per share.


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

Resolute Energy (REN) posted Q4 adjusted net income of $0.42 per share, compared with adjusted net income per share of $0.27 in the same quarter a year earlier, missing the $0.61 per share consensus of analysts polled by Capital IQ. Revenue for the quarter was $89.3 million compared with $62.7 million a year earlier. That was higher than the Capital IQ forecast of $87.7 million. Q4 production increased 41% from a year earlier to 27,595 barrels of oil equivalent (Boe) per day, exceeding the high end of the company's updated forecast by 595 Boe per day. Q4 Permian Basin production increased 89% year-over-year to 25,481 Boe per day.


Crude was down 0.7%. United States Oil Fund (USO) was down 0.7%. Natural gas was up 0.9% while United States Natural Gas Fund (UNG) was up 0.7%.

Gold was up 0.3%. SPDR Gold Trust (GLD) was down 0.04%. Silver was up 0.5%, while iShares Silver Trust (SLV) was up 0.6%.


Consumer Staples Select Sector SPDR (XLP) was up 0.4% and other funds Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were flat.

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 quiet in pre-market trading .

Workhorse Group (WKHS) shares advanced nearly 7% after the American technology company obtained a follow-on $7 million order for Workhorse all-electric delivery trucks, to be deployed in the Greater San Diego area. These all-electric vehicles are being deployed by a major delivery company in the San Diego area. Like Workhorse range-extended electric trucks, the all-electric trucks are powered by Panasonic batteries, deliver a 100-mile range, offer significant fuel and maintenance savings, and provide uncompromised fleet performance, the company said.

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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