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


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 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.


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.


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.

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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