ETF Preview: ETFs, Futures Mostly Higher as Fed Starts Two-Day Policy Meeting; Apple Earnings Still Ahead

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

VanEck Vectors Gold Miners ETF ( GDX ): -0.3%

SPDR S&P 500 ( SPY ):+0.03%

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

iShares MSCI Emerging Index Fund ( EEM ): +0.4%

VanEck Vectors Junior Gold Miners ETF ( GDXJ ): -0.4%

Broad Market Indicators

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

U.S. stock futures mostly higher ahead of the Federal Reserve's two-day policy meeting, with a rate decision to be announced Wednesday at 2 p.m. ET. Expectations are for the central bank to raise interest rates.

Companies reporting their financial results continue to be in focus: Coach (COH), Aetna (AET) and Mastercard (MA) were higher while ConocoPhillips (COP), Advanced Micro Devices (AMD) and Lumber Liquidators (LLL) slipped lower.

Looking ahead, Apple (AAPL) will be releasing its earnings report in the after hours, along with Hanesbrands (HBI), First Solar (FSLR) and USANA (USNA).

Power Play: Technology

Tech funds 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 also flat.

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

AMD (AMD) fell 11.8% after it reported late Monday Q1 revenue of $984 million, up from $832 million in the year ago quarter and in line with the analyst consensus on Capital IQ. Loss for the quarter was $0.04 per share, narrower than the year ago loss of $0.12 per share and matching the Street view. For Q2, the company expects revenue to increase about 17% sequentially, plus or minus 3%, or roughly $1.15 billion at the 17% sequential increase. The Street is forecasting revenue of $1.122 billion.

Winners and Losers


Select Financial Sector SPDRs (XLF) was flat. Direxion Daily Financial Bull 3X shares (FAS) and its bearish counterpart, FAZ, were quiet in pre-market trading.

Mastercard (MA) was up 1% after the credit card company reported Q1 adjusted EPS increased 17% to $1.01 in the March quarter, surpassing the $0.95 average estimate of analysts surveyed by Capital IQ. Q1 revenue increased 12% to $2.73 billion, beating the analyst consensus of $2.65 billion.


Dow Jones U.S. Energy Fund (IYE) was up 0.3% and Energy Select Sector SPDR (XLE) was up 0.2%.

ConocoPhillips (COP) reported a Q1 adjusted loss per share that narrowed significantly from the year-earlier period but missed analysts' consensus estimate for an adjusted profit per share, even as the oil explorer and producer's revenue rose more than the Street expected. The company posted a Q1 adjusted loss per share of $0.02, sharply narrowed from its year-earlier adjusted loss per share of $0.95, but missing analysts' mean estimate according to Capital IQ for an adjusted profit of $0.03 per share. Revenue totaled $7.77 billion, up from $5.02 billion a year earlier and topping the Street's mean estimate of $7.52 billion.


Crude was up 0.1%. United States Oil Fund (USO) was up 0.8%. Natural gas was up 0.2% while United States Natural Gas Fund (UNG) was flat.

Gold was down 0.2%. SPDR Gold Trust (GLD) was down 0.4%. Silver was up 0.1% while iShares Silver Trust (SLV) was down 0.1%.


Consumer staples funds 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.

Cummins (CMI) rose 6% after reporting Q1 EPS increased to $2.36 per share in the three months ended April 2, compared to $1.87 per share, a year earlier. That surpassed the $1.80 average estimate of analysts surveyed by Capital IQ. Revenue increased 7% to $4.59 billion, topping the analyst consensus of $4.15 billion. The company boosted its FY revenues guidance to grow 4% to 7%, up from the prior guidance of flat to down 5%.

Health Care

Health care funds 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 quiet..

Pfizer (PFE) was down 0.5% after it reported Q1 adjusted diluted EPS of $0.69, up from last year's $0.67, exceeding the Capital IQ consensus of $0.67. Revenues fell 2% year-over-year to $12.78 billion from $13.01 billion, missing the mean estimate of $13.09 billion provided by Capital IQ. The company still expects adjusted diluted EPS of $2.50 to $2.60 and revenues of $52.0 billion to $54.0 billion for the year. Analysts are expecting EPS of $2.55 and revenue of $53.15 billion.

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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