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ETF Preview: ETFs, Futures Positive as Trade Fears Ease Following Trump Tweet Supporting Chinese Telecom ZTE

Active broad-market exchange-traded funds ahead of Monday's regular session:

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

SPDR S&P 500 ( SPY ): +0.2%

SPDR Select Sector Fund - Financial ( XLF ): +0.2%

VelocityShares Daily 2x VIX Short Term ETN ( TVIX ): -2.2%

iShares Inc iShares MSCI Brazil ETF ( EWZ ): +1%

Broad Market Indicators

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

US futures were pointing to a higher open, amid easing trade war tensions between the US and China after President Donald Trump tweeted over the weekend that he is working with Chinese President Xi Jinping to help Chinese telecom company, ZTE.

Exports on the company's products had earlier been banned in the US after the Commerce Department said ZTE failed to uphold certain terms of a plea agreement it signed last year. The company had pleaded guilty to illegally shipping US equipment to Iran and North Korea.

Meanwhile, no economic data releases are on tap, but looking ahead to the rest of the week, investors will be focusing on data on retail sales, housing data, industrial production, and capacity utilization as well as data on leading economic indicators.

Power Play: Health Care

Health Care SPDR (XLV) was up 0.3% and other health care funds Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were flat. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was flat.

Amphastar Pharmaceuticals (AMPH) said that the US Food and Drug Administration granted approval of the company's abbreviated new drug application for Calcium Chloride injection 10% in the 10 mL Luer-Jet prefilled syringe system. The injection is indicated for the treatment of hypocalcemia. For the past 40 years, the company has sold and marketed the product under the "grandfather" exception. Net revenues for the company's calcium chloride injection were $13.5 million for 2017.

Winners and Losers

Financial

The Select Financial Sector SPDRs ( XLF ) was up 0.1%. Direxion Daily Financial Bull 3X shares (FAS) was up 0.5% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was flat..

Citizens Financial (CFG), a New England-based bank, detailed plans for a Q3 launch of "Citizens Access," a nationwide consumer digital platform, offering FDIC-insured deposit products. Citizens Financial said it will offer depositors attractive rates in a lower-cost format.

Technology

Technology Select Sector SPDR ETF (XLK) was up 0.3% and 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 flat.

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

Remark Holdings (MARK) shares were higher marginally after the company reported a Q1 loss of $0.43 per share compared with breakeven per share a year earlier, which was wider than a single forecast for a loss of $0.35 as provided by Capital IQ. Revenue rose 9% year-over-year to $16.7 million but fell short of a single estimate of $19.5 million. For FY18, the company continues to expect revenue of over $120 million, above a single forecast of $106 million.

Energy

Dow Jones US Energy Fund (IYE) was flat and Energy Select Sector SPDR (XLE) was up 0.3%.

Key Energy Services (KEG) said pre-market Monday it has named CFO Marshall Dodson as interim CEO as CEO Robert Drummond will resign from the firm to pursue another opportunity. The well servicing contractor said it will hire an executive search firm to conduct a search for a permanent CEO.

Commodities

Crude was up 0.1%. United States Oil Fund (USO) was up 0.3%. Natural gas was up 0.7% while United States Natural Gas Fund (UNG) was up 0.3%.

Gold was down 0.1%. SPDR Gold Trust (GLD) was down 0.04%. Silver was up 0.6%, while iShares Silver Trust (SLV) was down 0.4%.

Consumer

Consumer Staples Select Sector SPDR (XLP) was up 0.02% and other funds Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were inactive.

Consumer Discretionary Select Sector SPDR (XLY) was up 0.3% and retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were quiet in the pre-market session.

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 MTNewswires.com. 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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