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ETF Preview: ETFs, Futures Point to Lower Open Following Lackluster Retail Sales, Producer Prices Data

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

SPDR S&P 500 ETF Trust ( SPY ): -0.2%

VIX Short-Term Futures ETN Ipath ( VXX ): +0.8%

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

iShares MSCI Emerging Index Fund ( EEM ): -0.7%

3X Long Crude ETN Velocityshares ( UWTI ): +1.2%

Broad-Market Indicators

Most broad-market exchange-traded funds, including SPY, IWM, IVV and others, were lower. Actively traded PowerShares QQQ (QQQ) was down 0.4%.

U.S. stock futures were also pointing to a lower open, weighed by weakness in October's retail sales reports, as well as in producer price index.

The Commerce Department said U.S. retail sales rose just 0.1% in October, missing forecasts for a seasonally adjusted 0.4% increase. Excluding autos and gas, sales rose 0.3%.

Meanwhile, U.S. producer prices fell 0.4% in October, versus expectations for a seasonally adjusted 0.3% increase. Excluding food, energy and trade, core prices fell a smaller 0.1%. The price of services dropped 0.3% while goods declined 0.4%.

Still ahead, the University of Michigan's consumer-sentiment index is set for release at 10 a.m. ET. At 10 am ET, the September reading for U.S. business inventories will be reported.

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

J.C. Penney Company (JCP) was down 3.5% after the company reported fiscal Q3 net loss that narrowed to $137 million or $0.45 per diluted share from $188 million or $0.62 a year ago, better than the $0.57 loss that had been expected by analysts polled by Capital IQ. Sales rose to $2.9 billion from $2.76 billion and was just ahead of the $2.88 billion consensus estimate. Same store sales rose 6.4% from a year ago, better than expectations of a 5.4% growth rate. For fiscal 2015, J.C. Penney said it expects comparable store sales to increase 4% to 5% and adjusted EBITDA to be approximately $645 million, in line with the average estimate.

Winners and Losers

Financial

Select Financial Sector SPDRs ( XLF ) was down 0.3%. Daily Financial Bull 3X shares (FAS) was down 0.8% and its bearish counterpart, FAZ, was up 1.5%.

Investment bank Deutsche Bank AG (DB) has been downgraded by analyst at Citigroup to a neutral rating from a buy. Price target information was not available. DB shares were down 1.5%.

Technology

Technology Select Sector SPDR ETF (XLK) was down 0.3% while 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. 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 .

Applied Materials (AMAT) was up 3.6% after the company posted late Thursday earnings results for Q4 non-GAAP net income of $347 million or $0.29 per share, versus $338 million or $0.27 per share in the same quarter the previous year. The Capital IQ analyst estimate is for $0.29 EPS. Revenue was $2.37 billion, up 7% from $2.26 billion in the same quarter last year. Analysts were expecting revenue of $2.4 billion. The company expects Q1 2016 EPS of $0.23 - $0.27, versus the Street view of $0.25 EPS. It expects net sales to be down 2% to 9% sequentially, which calculates to guidance of $2.42 billion - $2.58 billion, versus forecasts for $2.28 billion in revenue.

Energy

Dow Jones U.S. Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was down 0.2% in the pre-market session.

Plug Power (PLUG) was up 7.3% after it and 3M (MMM) have entered into an agreement to create a new fuel cell system by combining 3M's membrane electrode assemblies (MEA) with designed proton exchange membrane fuel cell stacks. The fuel cell stacks will be manufactured in Plug Power's Latham, NY and Spokane, WA facilities to support the $20 billion material handling market. Fuel cell systems using the 3M MEA's and Plug Power stack design will begin shipments in Q4 2015. MMM shares were flat in pre-market trading.

Commodities

Crude was down 0.5%. United States Oil Fund (USO) was down 0.1%. Natural gas futures were up 1.6%. United States Natural Gas Fund (UNG) was up 0.6%. Gold was up 0.1% and SPDR Gold Trust (GLD) was flat.

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 down 0.2%.

Mylan (MYL) was up 10% after its hostile bid for Perrigo Company (PRGO) didn't receive shareholder voter approval Friday morning. A report from Reuters cited people familiar with the matter and said around 40% of Perrigo's ordinary shares had been tendered ten hours before the tender offer was due to expire on Friday, short of Mylan's acceptance threshold of more than 50%.

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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