ETF Preview: ETFs, Futures In the Red on Continued Slowdown in China's Growth; Investors Mull Inflation, Consumer Spending Data

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

SPDR S&P 500 ETF Trust ( SPY ): -0.9%

VIX Short-Term Futures ETN Ipath ( VXX ): +3.8%

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

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

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.8%

Broad-Market Indicators

Most broad-market exchange-traded funds, including SPY, IWM, IVV and others, edged lower. Actively traded PowerShares QQQ ( QQQ ) was down 0.8%.

U.S. stock futures are set to start the week in the red, tracking European markets, as worries over the slowdown in China's economic growth continue to worry investors - underscored by a recent report from China' National Bureau of Statistics, which showed that August industrial profits tumbled 8.8% year over year

Back home, U.S.inflation, as measured by the PCE price index, remained flat for August. Core inflation, which excludes food and energy, edged up 0.1%, in line with expectations. Meanwhile, consumer spending rose 0.4%, above forecasts for a 0.3% increase. Personal income, on the other hand, rose 0.3%, short of expectations for a rise of 0.4%.

Looking ahead, pending home sales for August will be reported at 10 am ET. Chicago Fed President Charles Evans and San Francisco Fed President John Williams have speaking engagements later, 1 pm ET and 5 pm ET, respectively.


Power Play: 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 1%.

Biotechnology company OncoSec (ONCS) reported positive results from the second phase of clinical testing of its investigational therapy ImmunoPulse IL-12 product in patients with Merkel cell carcinoma. Phase 2 study revealed that ImmunoPulse IL-12 leads to successful DNA transfection and sustained protein expression within the tumor microenvironment. The therapy was also well-tolerated with no adverse effects. Shares were up 5.5%.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was down 0.9%. Daily Financial Bull 3X shares (FAS) was down 2.2% and its bearish counterpart, FAZ, was flat.

Gramercy Property Trust (GPT) said that it has closed on the sale and leaseback of an industrial property located in Pinellas Park, Florida for approximately $11.1 million in an all-cash transaction. The 131,800-square foot facility is 100% leased to a global importer and retailer of cigars and cigar accessories. Upon closing of the transaction, the tenant signed a new 15-year lease for the entire facility.


Technology Select Sector SPDR ETF (XLK) was down 0.2% 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 .

Qualcomm (QCOM) said it plans to invest up to $150 million in more than 20 Indian startup companies as part of a venture it started in 2007. Sectors of investment vary across the mobile ecosystem and include hardware, software platforms, e-commerce, healthcare, location based services and retail technology.


Dow Jones U.S. Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was down 1.1%.

Dutch oil production major Royal Dutch Shell (RDS.A) announced that it would seal and abandon its Burger J Well in Alaska's Chukchi Sea after finding that the indications of oil and has in the well were not sufficient to warrant further exploration. Describing the result as "a clearly disappointing exploration outcome" Shell said it would cease further exploration activity in offshore Alaska for the foreseeable future. The company added that it expects to take financial charges as a result of the announcement. Shares are down 1.7%.


Crude was down 2%. United States Oil Fund (USO) was down 1.7%. Natural gas futures were up 2.6%. United States Natural Gas Fund (UNG) was up 2.5%. Gold was down 1.4% and SPDR Gold Trust (GLD) was down 1.4%.


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) was down 0.1% while SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were flat.

Domino's Pizza (DPZ) said it will record an estimated pre-tax expense of $5.7 million in Q3 related to increased claim activity in its programs for workers' compensation and other liabilities. The charge will result in an estimated $0.06 decrease in the Q3 diluted earnings per share. The company also reported a 10.5% increase in domestic same-store sales, up from 7.7% growth in the same quarter last year and 7.7% internationally, up from 7.1% last year. Financial results for Q3 are expected to be fully reported on October 8.

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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