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ETF Preview: ETFs, Futures Point to Lower Open Following Trade Deficit, ADP Jobs Data

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

SPDR S&P 500 ( SPY ): -0.5%

iShares MSCI Emerging Index Fund ( EEM ): -0.6%

iPath S&P 500 VIX ST Futures ETN ( VXX ): +2.5%

Market Vectors Gold Miners ETF ( GDX ): -1.6%

iShares MSCI Japan Index Fund ( EWJ ): -0.9%

Broad-Market Indicators

Most broad-market exchange-traded funds, including SPY, IWM, IVV and others, were weaker. Actively traded PowerShares QQQ (QQQ) was down 0.7%.

U.S. stocks were lower ahead of Wednesday's open following the report that the U.S. trade deficit narrowed in March by 17% to $40.4 billion. This was lowest level in more than a year. Exports fell 2.2% to $176.6 billion in March - also near the lowest level in several years while exports of food and industrial supplies fell to the lowest level since 2010. Meanwhile, imports declined 4.9% to $217.1 billion, hitting a five-year low.

In jobs data, Automatic Data Processing reported that private-sector employers added 156,000 jobs in April, versus expectations for 193,000. ADP also lowered its March figure to 194,000 from the previous estimate of 200,000.

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.

The Priceline Group (PCLN) was down 7% after it reported Q1 earnings per share of $10.54, compared to $8.12 for the same period last year, and beating the Capital IQ forecast of $9.64. Revenues for the quarter were $2.15 billion, up from $1.84 billion in the year-ago quarter, and edged out the analyst forecast of $2.12 billion. Gross travel bookings were $16.65 billion from $13.78 for Q1 of 2015. Adjusted EBITDA was $676 million, up from $531.7 for the same period the previous year. In issuing it's Q2 2016 guidance, the company said it expects non-GAAP earnings between $11.60 and $12.50 per share, below the analyst view of $14.96 per share. Revenue is seen increasing 7% to 14% year-over-year.

Winners and Losers

Financial

Select Financial Sector SPDRs (XLF) was down 1%. Daily Financial Bull 3X shares (FAS) was down 2% while its bearish counterpart, FAZ, was up 2.6%.

LendingTree (TREE) was up 1% after it reported Q1 adjusted net income of $9.8 million, or $0.76 per share, down from $34.9 million, or $$2.69 per share, in the prior year period but topping analyst estimates of $0.74. On a GAAP basis the company reported net income of $6.9 million, or $0.54 per share, down from $32.1 million, or 2.47 per share, in the prior year period. Total revenues of $94.7 million were up from $78.3 million in Q1 2015 and exceeded analyst projections of $86.6 million. For Q2 revenue is anticipated to be $95 to $97 million, ahead of the Street projection of $93.1 million. For full-year 2016 the company increased revenue guidance to a range of $380 to $390 million from prior guidance of $370 to $380 million. The new guidance straddles the Street view of $380.6 million.

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 .

Glu Mobile (GLUU) was down 14.2% after it reported late Tuesday Q1 revenue of $54 million, better than the analyst consensus of $48.2 million on Capital IQ. Non-GAAP loss was $0.03, narrower than the Street estimate of a loss of $0.05 per share. For Q2, the company expects revenue of $46 to $49 million, below the Street view of $59.2 million. Non-GAAP loss is targeted in the range of $0.05 to $0.06 per share, vs. expectations of a loss of $0.04 per share. For 2016, it sees revenue of $215 to $235 million, below expectations of $263 million. Loss is targeted between $0.11 and $0.16 per share, vs. expectations of a loss of $0.10 per share.

Energy

Dow Jones U.S. Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was down 0.4% in the pre-market session.

ADRs of Royal Dutch Shell (RDS.A, RDS.B) were 2% lower after the Anglo-Dutch oil major reported Q1 adjusted EPS of $0.22 per share, down from $0.59 per share a year earlier but topping expectations for $0.14 a share. Income attributable to shareholders was $484 million, plunging 89% from $4.43 billion in Q1 2015. Revenues fell to $48.55 billion from $65.71 billion, yet beat the $46.7 billion average estimate of two analysts. Looking ahead, the company expects Q2 earnings to be negatively affected by a price-lag effect in its LNG contracts, given a significant decline in oil and gas prices in Q1.

Commodities

Crude was up 1.2% while natural gas futures were up 1.9%. United States Oil Fund (USO) was up 0.7% and United States Natural Gas Fund (UNG) was up 1.2%.

Gold was up 0.3% and SPDR Gold Trust (GLD) was up 0.1%. Silver was down 0.3% while iShares Silver Trust (SLV) was down 0.1%.

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 0.5%.

Nutrisystem (NTRI) was up 16.1% after it reported late Tuesday Q1 adjusted EPS was $0.13, topping the $0.07 average estimate of five analysts surveyed by Capital IQ. Revenue increased 18% to $162.1 million, also surpassing the Wall Street consensus of $152.1 million. Looking ahead, the company now anticipates 2016 revenue to be in the range of $517 million to $532 million compared to the previous range of $505 million to $525 million. Adjusted EPS is now expected to be $1.17 to $1.27 compared to the previous range of $1.09 to $1.19. The Street is at $514 million in revenue and earnings of $1.07 per share. The company projects Q2 revenue to be in the range of $145 to $150 million. Analysts are looking for revenue of $145.1 million. The company also announced on Tuesday a $50 million share buyback program.

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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