ETF Preview: ETFs, Futures Mixed as Street Digests Earnigns Reports, Jobless Claims, and PPI Data

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

SPDR S&P 500 ( SPY ): +0.04%

SPDR Select Sector Fund - Financial ( XLF ): +0.3%

iShares MSCI Emerging Index Fund ( EEM ): -0.1%

United States Oil Fund ( USO ): +0.2%

iShares Inc iShares MSCI Brazil ETF ( EWZ ): -0.4%

Broad Market Indicators

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

US stock futures were mixed ahead of the open, with investors looking forward to a new batch of corporate earnings as well as economic data releases.

Yelp (YELP), Roku (ROKU), L Brands (L), Viacom (VIAB) and e.l.f. (ELF) were among pre-market movers after reporting their financial results late Wednesday or early Thursday.

Meanwhile, several M&A related news are also likely to be in focus. Rite Aid (RAD) was trading lower after its merger with Albertsons Cos was called off; likewise, Tribune Media (TRCO) has terminated its merger with Sinclair Broadcast Group (SBGI) and said that it is suing the latter for breach of contract.

In economic data news, the Labor Department reported that weekly jobless claims fell by 6,000 to 213,000, versus forecasts for 217,000. Continuing claims rose by 29,000 to 1.76 million.

The producer-price index for July was flat, versus an increase of 0.2%. Core PPI rose 0.3% for the second straight month.

Looking ahead, a report on wholesale inventories for June will be released at 10 am ET.

Power Play: Technology

Technology Select Sector SPDR ETF (XLK) 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 inactive.

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

Yelp (YELP) rose nearly 15% after it reported late Wednesday that its diluted EPS rose to $0.12 in Q2 from $0.09 a year earlier, beating the Street expectations of $0.01 for the quarter. Revenue rose to $234.86 million from $209.95 million a year ago, exceeding the $232.28 million estimate. The company expects net revenue of $242 million to $246 million for Q3 and $952 million to $967 million for 2018, against prior guidance of $943 million to $967 million. The Street consensus is for $247.25 million for the quarter and $960 million for the year.

Winners and Losers


The Select Financial Sector SPDRs ( XLF ) was up 0.04%. Direxion Daily Financial Bull 3X shares (FAS) and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) were both inactive in the pre-market trading ..

Dun & Bradstreet (DNB) rose 17% after it reported late Wednesday Q2 adjusted earnings of $1.40, unchanged from the prior-year quarter. Analysts polled by CapIQ were expecting EPS of $1.51. Total revenue was recorded at $394.4 million, down from $408.4 million in the comparable period last year and below the analyst consensus of $403.3 million. The company also said that it has entered into a definitive merger agreement to be acquired by an investor group led by CC Capital, Cannae Holdings and funds linked to Thomas H. Lee Partners. Under the agreement, Dun & Bradstreet shareholders will receive $145.00 in cash for each share of common stock they own, in a deal valued at $6.9 billion including the assumption of $1.5 billion of the company's net debt and net pension obligations. The offer price represents a premium of about 30% over Dun & Bradstreet's closing share price of $111.63 on Fed. 12, the last day of trading prior to the company's announcement of a strategic review and an indication of its willingness to pursue all options for value creation. Upon completion of the transaction, Thomas J. Manning will serve as CEO while lead director James N. Fernandez will assume the role of chairman.


Dow Jones US Energy Fund (IYE) was flat and Energy Select Sector SPDR (XLE) was down 0.7% in pre-market trade.

OGE Energy (OGE) rose marginally after it reported Q2 earnings of $0.55 per diluted share compared to $0.52 per diluted share in the year-ago period. Analysts polled by CapIQ had called for an EPS of $0.57. Total revenue was recorded at $567.0 million, down from $586.4 million last year. It was also below the analyst consensus of $592.6 million. The company also said that it expects its full-year consolidated earnings guidance to be at the upper end of the previously issued guidance between $1.90 to $2.05 per average diluted share due to higher projected utility earnings.


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

Gold was up 0.1%. SPDR Gold Trust (GLD) was up 0.1%. Silver was up 0.4%, while iShares Silver Trust (SLV) was up 0.4%.


Consumer Staples Select Sector SPDR (XLP) 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 inactive in pre-market trade.

e.l.f. Beauty (ELF) fell nearly 21% after it reported late Wednesday that its adjusted EPS fell to $0.13 in Q2 from $0.15 a year earlier, but still far higher than analysts' estimates of $0.06 in a Capital IQ poll. Revenue rose to $59.06 million from $55.86 million a year ago, about in line with the $59.20 million estimate. For fiscal 2018, the company now expects low single digits in net sales growth, compared with 6% to 8% growth previously, and adjusted diluted EPS of $0.56 to $0.61 from prior guidance of $0.59 to $0.61. The Street view is for EPS of $0.60 on revenue growth of 6.9%.

Health Care

Health Care SPDR (XLV) and 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 flat in pre-market trading.

Rigel Pharmaceuticals (RIGL) rose more than 11% after the company said Q2 net loss per share was flat at $0.16 and met the CapIQ mean. Sales were $1.79 million, above forecasts for $35,000.

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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