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ETF Preview: ETFs, Futures Modestly Higher Ahead of ISM, Construction Spending Data

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

SPDR S&P 500 ( SPY ): +0.3%

iPath S&P 500 VIX ST Futures ETN ( VXX ): -1.7%

Market Vectors Gold Miners ETF ( GDX ): +2.6%

iShares MSCI Emerging Index Fund ( EEM ): +0.3%

VelocityShares Daily 2x VIX ST ETN ( TVIX ): -2.9%

Broad-Market Indicators

Most broad-market exchange-traded funds, including SPY, IWM, IVV and others, were higher. Actively traded PowerShares QQQ (QQQ) was up 0.2%.

U.S. stocks were pointing to a modestly higher open ahead of the Institute for Supply Management's April data, scheduled for release at 10 am ET. Construction spending for March will also be reported at the same time.

Halliburton (HAL) and Baker Hughes (BHI) were in the spotlight after the oilfield services giants said they have terminated the merger agreement they entered into in November 2014. Halliburton will pay Baker Hughes a termination fee of $3.5 billion by May 4, which the latter plans on using to buy back stocks and cut costs.

Apple (AAPL) may also be in focus following a report by the International Data Corporation (IDC), a market research, analysis and advisory firm, that worldwide shipments of tablets fell 15% in Q1. Despite having a 26% market share - the largest among tablet manufacturers - Apple's market share declined from 27% in the last quarter and iPad sales fell 18%.

Power Play: Consumer

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

Consumer Discretionary SPDR (XLY) and retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were flat.

GNC Holdings (GNC) was up 6.9% after the retailer of health, wellness and performance products said it has started a review of strategic and financial alternatives to increase shareholder value. The company said it is considering alternatives such as accelerated refranchising strategies, capital structure optimization, partnerships and other value-creating collaborations, or a potential sale of the company. GNC said it is working with Goldman Sachs as financial advisor and Wachtell, Lipton, Rosen & Katz as legal advisor.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) was up 0.04%. Daily Financial Bull 3X shares (FAS) was up 1.2% while its bearish counterpart, FAZ, was up 0.3%.

Deutsche Bank (DB) was down 2.9% following a report in the Financial Times (FT) Sunday that the UK financial services watchdog sent a letter to Deutsche Bank in March saying it discovered "serious" and "systemic" failings in its controls against money laundering, terrorist financing and sanctions. Deutsche Bank had already been put under ''enhanced supervision'' by the Financial Conduct Authority (FCA) because of concerns over some of its governance and regulatory control systems, the Times newspaper reported in January. The FT said that the UK regulator conducted an in-depth review last year that revealed shortcomings at the bank, including missing documents and a lack of transaction monitoring. The FCA now ordered a separate independent review, according to a letter sent March 2 to Deutsche, the FT said.

Technology

Technology Select Sector SPDR ETF (XLK), Shares 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. SPDR S&P International Technology Sector ETF (IPK) was also unchanged.

Semiconductor ETFs SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were flat in pre-market trading .

BroadSoft (BSFT) was down 1.7% after it reported Q1 adjusted net income of $11.1 million, or $0.37 per diluted common share, up from $7.0 million, or $0.24 per diluted common share, in Q1 2015 and topping analyst estimates of $0.26. Total revenues of $73.1 million were up from $55.7 million in Q1 2015 and exceeded analyst projections of $71.6 million. For Q2 BroadSoft anticipates revenue of $76 to $81 million, straddling the Street estimate of $79.9 million. The company expects adjusted EPS in a range of $0.25 to $0.40 per share, below the Street view of $0.44. For the full year the company expects revenue of $332 to $340 million, straddling the Street view of $336.1 million. Adjusted EPS is expected between $1.90 and $2.10, straddling the Street projection of $2.03.

Industrial

Select Sector SPDR-Industrial (XLI), Vanguard Industrials (VIS) and iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ) were unchanged in pre-market territory.

Sterling Construction Company Inc (STRL) was down 0.8% after the company said it plans to sell 4.5 million shares to raise funds for working capital and to pay down debt. Underwriters will have the option to buy a further 675,000 shares. Paul Varello, Sterling's CEO, intends to purchase $500,000 of common stock in this offering at the public offering price.

Energy

Dow Jones U.S. Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was down 0.1% in the pre-market session.

Clean Energy Fuels (CLNE) was 3.9% higher after it said it has secured a contract to provide liquefied natural gas to Hawaii Gas, the State of Hawaii's only franchised gas utility. The company also extended an LNG supply agreement with the City of Phoenix worth over $10 million and renewed a three year operations & maintenance contract with the Corpus Christi Regional Transit Authority for approximately 3 million gasoline gallon equivalents. The company also reached an agreement for up to 500,000 gallons of the renewable natural gas fuel Redeem with Fred Meyer Stores and said it has started providing fueling solutions at the Pilot Flying J station in West Memphis, Arkansas, among other contracts.

Commodities

Crude was down 0.2% while natural gas futures were down 3.3%. United States Oil Fund (USO) was down 0.3% and United States Natural Gas Fund (UNG) was down 1.6%.

Gold was up 0.9% and SPDR Gold Trust (GLD) was up 0.7%. Silver was up 0.7% while iShares Silver Trust (SLV) was up 0.4%.

Health Care

Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were flat. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.2%.

BIND Therapeutics (BIND) was down 61.8% after the biotechnology company said it initiated Chapter 11 proceedings. The company, which has been active in developing targeted and programmable therapeutics called ACCURINS, said it has elected to file a voluntary petition under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The company said the the filing minimizes the impact from the recent demand by its lender, Hercules Technology III, for accelerated repayment of a loan. BIND said it expects to be able to maintain ongoing financing activities and collaborator obligations while moving its R&D initiatives and pipeline forward. BIND said it is working with an investment bank to review financial and strategic alternatives with the goal of maximizing stockholder value. Alternatives may include raising additional capital, a strategic collaboration with one or more parties, or the licensing, sale or divestiture of its proprietary technologies.

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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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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