ETF Preview: ETFs, Futures Weaker Following New Stimulus Measures from Japan, Crude Oil Prices Decline

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

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

iShares MSCI Emerging Index Fund ( EEM ): -0.03%

VIX Short-Term Futures ETN Ipath ( VXX ): +4.5%

Market Vectors Gold Miners ETF ( GDX ): +1.3%

SPDR Select Sector Fund - Financial ( XLF ): -1.5%

Broad-Market Indicators

Most broad-market exchange-traded funds, including SPY, IWM, IVV and others, were lower. Meanwhile, actively traded PowerShares QQQ (QQQ) edged lower, down 0.9%.

U.S. stock futures were pointing to another open in negative territory as market sentiment soured following another slump in crude oil prices , as well as news that the Bank of Japan said it will implement a new round of stimulus measures - sending the yen soaring against the dollar.

There are no major economic data set for release; in the meantime, Richmond Fed President Jeffrey Lacker is scheduled to give a speech at the Charlotte Chamber of Commerce in Charlotte, N.C. at 13:30 pm ET.

Power Play: Consumer

Consumer Staples Select Sector SPDR (XLP) was up 0.1% while other consumer staple funds iShares Dow Jones US Consumer Goods (IYK) and Vanguard Consumer Staples ETF (VDC) were inactive.

Consumer Discretionary SPDR (XLY) was down 1.1%; retail funds SPDR S&P Retail (XRT), PowerShares Dynamic Retail (PMR) and Market Vectors Retail ETF (RTH) were flat.

Darden Restaurants (DRI) was up 2.8% after it reported Q2 adjusted EPS from continuing operations of $0.54, well above the $0.42 street outlook as compiled by Capital IQ, and up from $0.28 in the year-earlier period. Same restaurant sales in Q2 were up 1.6% YOY. Darden reported Q2 sales of $1.61 billion, slightly below street view of $1.62 billion. In updated full fiscal year 2016 outlook, Darden boosted adjusted EPS to $3.25 to $3.35, from previous $3.15 to $3.30. Darden said the updated guidance takes into account an expected reduction of diluted EPS of $0.08 related to completed real estate transactions, excluding advisory fees. The Street view is $3.18 per share.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was down 1.5%. Daily Financial Bull 3X shares (FAS) was down 1.9% and its bearish counterpart, FAZ, was up 2.2%.

Gramercy Property Trust (GPT) was up 4.7% after it said late Thursday that it has completed its merger with Chambers Street Properties (CSG) and has secured $2.2 billion in new financings. The facility consists of an $850 million senior unsecured revolving credit facility, a $300 million three-year term loan and a $750 million five-year term loan. The combined company also entered into a new $175 million seven-year senior unsecured term loan. In addition, the combined company announced that the combined company completed the private placement of $150 million in senior unsecured notes. The notes have a fixed interest rate of 4.97% and are due December 2024. $100 million of the private placement was funded concurrent with the closing of the merger and $50 million is expected to fund in January 2016.


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 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 .

BlackBerry (BBRY) was up 2.8% after the company reported a maller than expected fiscal Q3 loss while its revenue far exceeded expectations. The provider of mobile communications and services said its non-GAAP loss in the quarter ended Nov. 28 was $0.03, smaller than the $0.16 average loss than had been expected by analysts polled by Capital IQ. GAAP- revenue fell to $548 million from $793 million and beat the $488 million consensus estimate. Looking ahead, BlackBerry said it continues to expect positive free cash flow and adjusted EBITDA.


Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) were flat in the pre-market session.

Vanguard Natural Resources (VNR) was down 1.2% after the developer of oil and gas properties, Friday said its monthly dividend has been reduced to $0.03 per common unit from the $0.1175/unit. The dividend for the month of November will be paid on January 14 to unit holders of record on January 4.


Crude was down 0.5%. United States Oil Fund (USO) was up 0.2%. Natural gas futures were up 0.4%. United States Natural Gas Fund (UNG) was down 0.4%. Gold was down 0.3% and SPDR Gold Trust (GLD) was up 0.7%. Silver was up 0.9% and iShares Silver Trust (SLV) was up 1%.

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 1.1%.

Johnson & Johnson (JNJ) was down 1% after Bavarian Nordic A/S said it has entered an agreement with the company's Janssen Pharmaceuticals unit for licensing and collaboration in the development of a therapeutic human papillomavirus vaccine.

Under the terms of the deal, Janssen will buy the exclusive rights to Bavarian Nordic's MVA-BN technology for use in a prime-boost vaccine regiment together with Janssen's AdVac technology, with the purpose of targeting all cancers induced by human papillomavirus. Janssen will make an upfront payment of $9 million to Bavarian Nordic as well as potential future payments upon reaching development and commercial milestones, together totaling up to $171 million. Janssen will fund all development costs, and Bavarian Nordic will undertake all manufacturing related to MVA-BN. Furthermore, Bavarian Nordic is entitled to receive single-digit tiered royalties on future product sales.

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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