ETF Preview: ETFs, Futures Trim Gains Following Strong ADP Jobs Report

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

SPDR S&P 500 ETF Trust ( SPY ): +1.3%

VIX Short-Term Futures ETN Ipath ( VXX ): -4.6%

iShares MSCI Emerging Index Fund ( EEM ): +2.4%

PowerShares QQQ Trust, Series 1 ( QQQ ): +1.5%

iShares Russell 2000 ETF ( IWM ): +1.1%

Broad-Market Indicators

Most broad-market exchange-traded funds, including SPY, IWM, IVV and others, jumped higher. Actively traded PowerShares QQQ ( QQQ ) was up 1.5%.

U.S. stock futures were in positive territory but trimmed earlier gains following the ADP report that the private sector added 200,000 jobs in September. This beat expectation for 190,000 jobs. Analysts consider the ADP data as an indicator of the closely watched nonfarm-payrolls report that the government will release on Friday.

Looking ahead, Federal Reserve Chair Janet Yellen is scheduled to give welcoming remarks at the St. Louis Fed conference on community banking at 3 pm ET. Fed governor Lael Brainard will give a speech in the same conference, at 8:15 pm ET.


Power Play: Technology

Technology Select Sector SPDR ETF (XLK) was down 0.03% 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 .

Barracuda Networks (CUDA) tumbled 24.9% after it reported late Tuesday that Q2 sales grew 14% YOY to $78.4 million, just missing the CapIQ mean for $78.67 million. Non-GAAP EPS was $0.10, a penny above estimates. The company also presented disappointing current quarter earnings and revenue guidance. Barracuda pointed a slowing storage market as one problematic factor. Separately, Barracuda reported it plans to buy Intronis, to close in Q3.

Winners and Losers


Select Financial Sector SPDRs (XLF) was up 1.2%. Daily Financial Bull 3X shares (FAS) was up 3.2% and its bearish counterpart, FAZ, was down 3.1%.

Moody's (MCO) reaffirmed its full-year 2015 earnings per share guidance but has modified certain elements of its revenue guidance. The company confirmed full-year 2015 earnings per share guidance in the range of $4.55 to $4.65, below to in line with analyst estimates of $4.65, according to Capital IQ. Moody's Investors Service revenue for full-year 2015 is still expected to increase in the mid-single-digit percent range, but non-U.S. MIS revenue is now expected to decrease in the low-single-digit percent range, adjusted from prior guidance projecting flat revenue, the company said. Global Moody's Analytics revenue for full-year 2015 is still expected to increase in the mid-single-digit percent range, but professional services revenue is now expected to decrease in the low-double-digit percent range, adjusted from prior guidance in the high single digit percent range.


Dow Jones U.S. Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was up 1.2%.

C&J Energy Services (CJES) said it expects Q3 results to be lower than guidance based on lower-than-anticipated activity and pricing levels due to weakness in commodity prices, with the most significant decline in the company's hydraulic fracturing operations. On its Q2 earnings conference call CJES said its hydraulic fracturing operations revenue could be down as much as 15% to 25% which would translate to an estimated 5% to 10% decline on total consolidated revenue from $511.2 million reported in Q2.


Crude was down 0.5%. United States Oil Fund (USO) was down 0.3%. Natural gas futures were down 0.7%. United States Natural Gas Fund (UNG) was up 0.8%. Gold was down 1.4% and SPDR Gold Trust (GLD) was down 0.8%.


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.

Gap (GPS) was down 7% after the announcement Tuesday that the CEO of its Old Navy unit is moving to Ralph Lauren (RL). Stefan Larssen will replace current CEO Ralph Lauren, who will continue with the company as Executive Chairman and Chief Creative Officer.

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 up 2.4%.

Bellerophon Therapeutics (BLPH) was up 7.4% after reporting that its INOpulse inhaled treatment of nitric oxide improved vasodilation in patients with pulmonary hypertension associated with chronic obstructive pulmonary disease. The data from functional respiratory imaging was presented at the European Respiratory Society International Congress 2015 in Amsterdam. In the trial, six subjects with pulmonary hypertension associated with COPD on long-term oxygen therapy were given an acute dose of INOpulse inhaled nitric oxide. Following treatment, the subjects underwent functional respiratory imaging to determine the geometry of their lungs, airway and pulmonary vascular structures. In all of the subjects, administration of inhaled nitric oxide resulted in increased blood volume in the blood vessels in the lungs while also preserving oxygen saturation following treatment. Anecdotally, all patients in the trial reported having felt better following the treatment.

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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