ETF Preview: ETFs, Futures Mixed As Street Awaits Yellen Speech; Consumer Confidence Also Ahead

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

SPDR Select Sector Fund - Financial ( XLF ): +0.2%

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

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): +0.3%

iShares MSCI Emerging Index Fund ( EEM ): -0.5%

United States Oil Fund ( USO ): +1%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were weaker. Actively traded PowerShares QQQ (QQQ) was down 0.5%.

U.S. stock futures were mixed to higher ahead of the opening bell, with investors remaining cautious ahead of a speech by Federal Reserve Chairwoman Janet Yellen, scheduled at 1 p.m. ET in London.

Also on tap, the June reading of consumer confidence at 10 a.m. ET.

Meanwhile crude oil futures rose for a fourth straight day as a weaker dollar boosted the appeal for commodities priced in the U.S. currency.

Power Play: 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 quiet in pre-market trading . SPDR S&P International Technology Sector ETF (IPK) was inactive.

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

Alphabet's (GOOG, GOOGL) Google unit was fined EUR2.42 billion ($2.72 billion) by the European Commission for breaching EU antitrust rules. "Google has abused its market dominance as a search engine by giving an illegal advantage to another Google product, its comparison shopping service," the Commission said on its Web site. The company must end the conduct within 90 days or face penalty payments of up to 5% of the average daily worldwide turnover of its parent Alphabet. The decision orders Google to give equal treatment to rival comparison shopping services and its own service. GOOGL shares were down 1.2%.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was up 0.2%. Direxion Daily Financial Bull 3X shares (FAS) was 0.2% and its bearish counterpart, FAZ, was flat.

Voya Financial (VOYA) said after market close on Monday that it has priced its registered public offering of $400 million aggregate principal amount of 3.125% senior notes due 2024. The senior notes will be guaranteed by Voya Holdings, a unit of Voya. The offering is expected to close on July 5. As previously announced, the company expects to use the net proceeds to redeem a portion of the company's senior notes due 2018 and to pay accrued interest, related premiums, fees and expenses.


Dow Jones U.S. Energy Fund (IYE) was quiet in pre-market trading while Energy Select Sector SPDR (XLE) was up 0.5%.

Baytex Energy Corp (BTE) provided late Monday production guidance for Q2 and the first half of the fiscal year 2017. Based on field estimates for June, average production during the quarter is estimated at 72,500 boe/d representing a 5% increase over the prior quarter. Production in the first half of this year is expected to be 70,900 boe/d. Notwithstanding the excellent production results achieved in the first half of the year, Baytex has elected to maintain its 2017 production guidance at 68,000 to 70,000 boe/d due to the prevailing volatility in commodity prices. Similarly, we are maintaining the capital budget guidance at $325 million to $350 million.


Crude was up 0.6%. United States Oil Fund ( USO ) was up 1%. Natural gas was up 1.9% while United States Natural Gas Fund (UNG) was flat.

Gold was down 0.9%. SPDR Gold Trust (GLD) was up 0.5%. Silver was down 0.5% while iShares Silver Trust (SLV) was flat.

Health Care

Health care funds Health Care SPDR (XLV) was down 0.1% while other health care funds, Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH), were inactive. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was down 0.1%.

OraSure Technologies (OSUR) was up 5% after the diagnostics developer said it has reached a funding agreement with the Bill & Melinda Gates Foundation that will enable the company to offer its HIV self-test in 50 developing countries. The funding will include support payments tied to the volume of product sold and reimbursement of costs. Under a four-year charitable support agreement OraSure will make the test available for purchase in 50 developing countries in Africa and Asia. The test allows an individual to detect antibodies to both HIV-1 and HIV-2 with an oral swab, with results in as little as 20 minutes.


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

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.

Darden Restaurants (DRI) was up 2.5% after it reported fiscal Q4 adjusted net profit of $1.18 per share, up from $1.10 per share in the prior year period and higher than the $1.15 per share Street estimate provided by Capital IQ. Sales for the quarter ended May 2 were $1.93 billion, up from $1.79 billion reported for the same period last year and higher than the $1.86 billion Street estimate. For fiscal 2018, the company expects adjusted profit to range from $4.38 to $4.50 per share. The Street estimate calls for earnings of $3.99 per share.

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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