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ETF Preview: ETFs, Futures In the Red as Fresh Tensions with North Korea Rankle Wall Street; Flash PMI, Atlanta Fed Data Still Ahead

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

SPDR Select Sector Fund - Financial ( XLF ): -0.4%

SPDR S&P 500 ( SPY ): -0.1%

VanEck Vectors Gold Miners ETF ( GDX ): +0.7%

VelocityShares 3x Long Natural Gas ETN ( UGAZ ): -0.3%

iShares MSCI Emerging Index Fund ( EEM ): -0.5%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were inching lower. Actively traded PowerShares QQQ (QQQ) was down 0.3%.

U.S. stock futures were lower ahead of the open as once again tensions between Washington and Pyongyang spooked U.S. investors into safe-havens. The latest threat is from North Korea's consideration of a nuclear test, discarding President Donald Trump warnings.

In economic data news, the flash Composite Purchasing Managers' Index for September will be released at 9.45 a.m. ET. Economists are looking for consensus of 54.9, down from 56.0 a month ago. Atlanta Fed Business Inflation Expectations for September will be published at 10.00 a.m. ET. The prior month business inflation expectations were up 1.9%.

Kansas City Federal Reserve Bank President Esther George will be speaking in Oklahoma City, with audience Q&A at 9.30 a.m. ET.

Crude oil futures were slightly lower as traders await the U.S. oil rig count for indications whether domestic production is slowing after a robust first half of 2017. The Organization of the Petroleum Exporting Countries meets in Vienna to discuss their supply quota plan. Reports say the cartel plans to signal its willingness to extend the deal well into 2018 in an effort to end the global supply glut.

Power Play: Consumer

Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were inactive.

Consumer Discretionary Select Sector SPDR (XLY) and retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were flat.

The Finish Line (FINL) shares were lower 7% after the footwear and athletic apparel retailer reported fiscal Q2 adjusted earnings of $0.12, down from $0.56 in the same period a year ago and topped the estimate of $0.11 from analysts polled by CapIQ. Total revenues of $469.4 million were down from $485.2 million in the comparable period a year ago and missed the Street projection of $478.3 million. Comparable store sales fell 4.5% in the quarter. The company said its guidance is unchanged from the one provided in August, with adjusted EPS seen in a range of $0.50 to $0.60. The guidance straddles the Street estimate of $0.53. For Q3 the company expects an adjusted loss per share of $0.32 to $0.40 compared to the consensus of $0.36 per share, and for Q4 the company anticipates adjusted EPS in the range of $0.50 to $0.58 compared to the consensus of $0.55. Finish Line expects comparable sales to decrease between 3% and 5% for Q3, Q4, and the full year.

Winners and Losers

Financial

Select Financial Sector SPDRs ( XLF ) was up 0.4%. Direxion Daily Financial Bull 3X shares (FAS) was up 0.5% and its bearish counterpart, FAZ, was up 1.1%.

HSBC has upgraded Deutsche Bank (DB) to a hold tating from reduce. Deutsche Bank has an average rating of a hold, and a consensus price target of $14.

Technology

Technology Select Sector SPDR ETF (XLK), 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 also inactive.

Qualcomm Incorporated (QCOM) was down 0.3% after it said that subsidiary Qualcomm River Holdings has extended the offering period of its cash tender offer to purchase all outstanding common shares of NXP Semiconductors (NXPI). The tender offer is now scheduled to expire Oct. 20 unless extended or earlier terminated.

Energy

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) were both flat..

8point3 Energy Partners (CAFD), a limited partnership, said pre-market Friday that it has increased its cash distribution for its class A shares by 3% to $0.2721 a share for Q3. The Q3 distribution will be paid on Oct. 13 to shareholders of record as of Oct. 3.

Commodities

Crude was down 0.2%. United States Oil Fund (USO) was down 0.5%. Natural gas was up 0.4% while United States Natural Gas Fund (UNG) was down 0.2%.

Gold was up 0.2%. SPDR Gold Trust (GLD) was up 0.3%. Silver was down 0.2% 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 in pre-market trading . Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was also inactive.

Eleven Biotherapeutics (EBIO) was up 5% after it said it has completed the manufacturing of all Vicinium necessary for its ongoing phase 3 registration trial in patients with non-muscle invasive bladder cancer, and for its Cooperative Research and Development Agreement (CRADA) with the National Cancer Institute. This change will include a reduction of headcount and associated cost savings, the company said. It expects top-line results from the phase 3 trial in mid-2018.

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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