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ETF Preview: ETFs, Futures Set to Open Higher as Mnuchin Says US-China Trade War 'On Hold'

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

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

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

iShares Inc iShares MSCI Brazil ETF ( EWZ ): +1.6%

SPDR Select Sector Fund - Financial ( XLF ): +0.6%

VelocityShares Daily 2x VIX Short Term ETN ( TVIX ): -6.6%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were higher. Actively traded PowerShares QQQ (QQQ) was up 0.7%.

US stock futures were pointing to a higher open as comments from Treasury Secretary Steven Mnuchin helped brighten market sentiment, saying over the weekend that the government would delay implementing tariffs on Chinese goods -- putting the so-called trade war "on hold." Mnuchin said the two coutnries were working out details of a trade deal.

Meanwhile, Robert Lighthizer, a US trade representative, said the Trump administration may still consider implementing tarriffs on goods from China.

In economic data news, the Chicago Federal Reserve's national activity index showed a reading of +0.34 for April, from +0.32 in March. Forecasts were for a reading of +0.25.

Power Play: Consumer

Consumer Staples Select Sector SPDR (XLP) rose 0.5% while other funds Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were flat.

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 inactive in pre-market territory.

LiveXLive Media (LIVX) rose over 17% after the company said it has signed a five year agreement making LiveXLive Media the global live streaming and content partner for the Montreux Jazz Festival in Lake Geneva, Switzerland. Additionally, LiveXLive will create a production and content studio within the festival grounds that will create and deliver additional programming as part of merging on-site activation with digital amplification. Select live performances will also be available in the US via audio streaming on LiveXLive's Slacker Radio platform. This year, LiveXLive plans to stream more than 27 music festivals and concerts across the globe with over 350 hours of live content as well as unique original programming.

Winners and Losers

Financial

The Select Financial Sector SPDRs ( XLF ) was up 0.6%. Direxion Daily Financial Bull 3X shares (FAS) was up 1.7% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was down 0.2%.

Wells Fargo (WFC) fell some 0.8% after a report from The Times of London after that said the bank is considering a Brexit contingency plan that could add hundreds of staff in the bank's Dublin office. Expanding operations in Dublin is thought to be one of the most likely options for the group, the report said. Wells Fargo has said it will confirm its post-Brexit arrangements "in the coming months." It is likely that the roles would be filled through relocation and local hiring.

Technology

Technology Select Sector SPDR ETF (XLK) was up 0.8% 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 inactive.

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

Cheetah Mobile (CMCM) fell 3% even as it reported Q1 non-GAAP earnings of RMB0.48 (or $0.08) per ADS, compared with the prior-year period's RMB0.81 per ADS. Analysts polled by Capital IQ were expecting earnings of RMB0.45 per ADS. Revenue was RMB1.15 billion, or $182.6 million, down from RMB1.19 billion in the same quarter last year. The Street view is for revenue of RMB1.13 billion. The company expects Q2 revenue of RMB1.02 billion - RMB1.08 billion, versus the Street view of on revenue of RMB1.14 billion.

Energy

Dow Jones US Energy Fund (IYE) was flat and Energy Select Sector SPDR (XLE) was up 0.5%.

Petroleo Brasileiro SA (PBR) rose nearly 2% after it said its wholly-owned subsidiary Petrobras Global Finance BV has commenced an offer to purchase for cash certain notes in two tranches of up to $2 billion each. The notes are of varying maturities between 2021 and 2043, according to a statement.

Commodities

Crude was down 0.01%. United States Oil Fund (USO) was flat. Natural gas was down 0.1% while United States Natural Gas Fund (UNG) was up 0.2%.

Gold was down 0.6%. SPDR Gold Trust (GLD) was down 0.5%. Silver was down 0.3%, while iShares Silver Trust (SLV) was down 0.3%.

Health Care

Health Care SPDR (XLV) was down 0.2% 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 up 0.6%.

Nabriva Therapeutics AG (NBRV) jumped nearly 19% after it reported positive results from its clinical trial with its Lefamulin pneumonia drug. The second of two global studies evaluated the safety and efficacy of five days of oral lefamulin compared to seven days of oral moxifloxacin in adult patients with moderate community-acquired bacterial pneumonia, it said, Lefamulin met the US Food and Drug Administration primary goal of non-inferiority compared to moxifloxacin for an early clinical response (ECR) assessed 72 to 120 hours following initiation of therapy. ECR was 90.8% for the five-day treatment course of lefamulin and 90.8% for the seven-day treatment course of moxifloxacin.

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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