ETF Preview: ETFs, Futures Turn Positive on Upbeat Nonfarm Payrolls Data

Shutterstock photo

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

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

SPDR Select Sector Fund - Financial ( XLF ): +1%

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

Credit Suisse AG - VelocityShares Daily 2x VIX Short Term ETN ( TVIX ): +0.1%

iPath S&P 500 VIX Short Term Futures TM ETN ( VXX ): +0.7%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV edged lower. Actively traded PowerShares QQQ (QQQ) was down 0.02%.

US stock futures turned positive following the report that February nonfarm payrolls surged 313,000 versus forecasts for 205,000. This was the biggest gain since mid-2016. However, the 12-month increase in worker pay declined to 2.6% from 2.8%, a sign that wages may not be keeping up with inflation. Despite the stronger-than-expected job growth, the unemployment rate held at 4.1% in February. The unemployment rate had been expected to dip to 4.0%.

Looking ahead, January data for wholesale inventories will be out at 10 am ET.

Chicago Fed President Charles Evans will be giving a speech to the Shadow Open Market Committee in New York at 12:45 pm ET, while Boston Fed President Eric Rosengren will be speaking at the Springfield Regional Chamber of Commerce in Springfield, Mass., at 12:40 pm ET.

Power Play: Health Care

Health Care SPDR (XLV) was up 0.02% and other health care funds Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were quiet. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was also flat.

PDL BioPharma (PDLI) rose nearly 21% after it reported late Thursday Q4 revenue of $68.0 million, compared with $66.5 million in the year-ago quarter. Analysts polled by Capital IQ were expecting revenue of $45.29 million. Net income for the quarter ended Dec. 31, 2017 was $0.15 per share, compared with net loss of $0.06 per share in the year-ago period. Analysts were expecting EPS of $0.03.

Winners and Losers


The Select Financial Sector SPDRs ( XLF ) was up 1%. Direxion Daily Financial Bull 3X shares (FAS) was up 1.6% and its bearish counterpart Direxion Daily Financial Bear 3X shares (FAZ) was down 1.8%.


Technology Select Sector SPDR ETF (XLK) was up 0.1% 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 quiet.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) was flat while Semiconductor Sector Index Fund (SOXX) was up 0.4%.

Finisar (FNSR) fell more than 10% after it reported Q3 revenue of $332.4 million, a decline from the $380.5 million recorded in the year ago quarter and just shy of the analyst consensus of $333.1 million on Capital IQ. Non-GAAP earnings were $0.20 per share, a decline from $0.59 per share posted a year ago and below expectations of $0.23 per share. For Q4, the company expects revenue in the range of $300 to $320 million, below the Street view of $332 million. Non-GAAP earnings are targeted between $0.09 and $0.15 per share, vs. the analyst consensus of $0.21 per share.


Dow Jones US Energy Fund (IYE) and Energy Select Sector SPDR (XLE) were both inactive in pre-market trading .

Renewable Energy Group (REGI) reported late Thursday Q4 adjusted earnings of $1.97 per diluted share, up from $1.00 per share a year ago and above the $0.06 average loss estimate from analysts polled by Capital IQ. Total revenue rose to $577.3 million from $560.4 million a year ago, beating the $503.7-million consensus.


Crude was up 0.8%. United States Oil Fund (USO) was down 0.3%. Natural gas was down 0.9% while United States Natural Gas Fund (UNG) was down 0.7%.

Gold was down 0.4%. SPDR Gold Trust (GLD) was down 0.4%. Silver was down 0.4%, while iShares Silver Trust (SLV) was down 0.8%.


Consumer Staples Select Sector SPDR (XLP) and 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 also quiet in pre-market trading.

El Pollo Loco (LOCO) rose nearly 9% after it reported late Thursday Q4 pro forma net income, a non-GAAP measure, of $0.11 per share, a penny better than the consensus on Capital IQ but below the year earlier $0.12 a share. Revenue rose 2.9% to $95.2 million, matching the Street's views. For 2018, the company sees income of $0.68 to $0.73 per share and system-wide comparable restaurant sales growth of approximately flat. The Street's view is for income of $0.73.

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.


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.