ETF Preview: ETFs, Futures Weaker as Street Digests Consumer Price, Retail Sales and New York Manufacturing Data

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

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

SPDR Select Sector Fund - Financial ( XLF ): -0.5%

SPDR S&P 500 ( SPY ): -0.4%

ProShares Trust Ultra VIX Short Term Futures ETF ( UVXY ):.+4%

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): +1.9%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were lower. Actively traded PowerShares QQQ (QQQ) was down 0.4%.

US stock futures trimmed losses but were still set to open lower as investors digested the manufacturing, retail sales and consumer price data. Lower crude oil prices were also weighing on market sentiment, ahead of the inventories report of the Energy Information Administration due out at 10 am ET.

The Empire State manufacturing index fell 10.8 points to 19.4 versus expectations for a decline to 26.0, according to the New York Federal Reserve.

Meanwhile, retail sales rose 0.2% in October, exceeding forecasts for a flat reading. Excluding autos, sales rose 0.1% versus expectations for a 0.2% gain.

And, the consumer price index rose 0.1% in October, in line with forecasts; excluding food and energy, core CPI rose a slightly larger 0.2%.

Power Play: Health Care

Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were inactive. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was down 0.6%.

Acorda Therapeutics (ACOR) shares plunged more than 38% after the company said there have been seven cases of sepsis, five of which were fatal, in its studies of tozadenant for Parkinson's disease. All of the deaths were in the tozadenant groups, Acorda said. As a result, the company said it has increased the frequency of blood cell count monitoring for participants to weekly in a phase 3 program in response to cases of agranulocytosis, possibly drug-related, that were in some cases associated with sepsis and death. The company has also has paused new enrollment in the long-term safety studies, pending further discussion with the independent Data Safety Monitoring Board and the US Food and Drug Administration.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was down 0.5%. Direxion Daily Financial Bull 3X shares (FAS) was down 1% and its bearish counterpart, FAZ was up 1.6% in pre-market trading .

MB Financial (MBFI) said it has priced its offering of $175 million principal amount of 4% fixed-to-floating rate subordinated notes due 2027 at an issue price of 100% of par value. The company intends to use the net proceeds for general corporate purposes.


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 quiet ahead of opening bell.

Apple (AAPL) is being investigated by the US International Trade Commission based on a patent infringement complaint filed by Aqua Connect and Strategic Technology Partners. The ITC said it voted to institute the investigation of certain Apple Mac computers, iPhones, iPads, iPods and Apple TVs. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation of the products into the United States. The complainants have asked for a limited exclusion order and a cease and desist order. The ITC said will set a target date for completing the investigation within 45 days.


Dow Jones U.S. Energy Fund (IYE) was flat and Energy Select Sector SPDR (XLE) was down 0.6%.

Bonanza Creek Energy (BCEI) shares were 12.2% higher after the company agreed to be acquired by SandRidge Energy (SD) in a cash-and-stock transaction valued at $746 million. Under the deal, Bonanza Creek shareholders will receive a per share consideration of $36, consisting of $19.20 in cash and $16.80 in SandRidge common stock. Following the transaction, Bonanza Creek shareholders will own between approximately 31.4% to 35.8% of SandRidge. The deal is expected to close in Q1 2018, subject to regulatory approvals and customary closing conditions.


Crude was down 1%. United States Oil Fund (USO) was down 0.5%. Natural gas was up 0.5% while United States Natural Gas Fund (UNG) was up 0.3%.

Gold was up 0.2%. SPDR Gold Trust (GLD) was down 0.5%. Silver was up 0.4% while iShares Silver Trust (SLV) was up 0.8%.


Consumer Staples Select Sector SPDR (XLP) was down 0.2% while other consumer staples funds 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 quiet in pre-market trade.

Sally Beauty (SBH) shares were down nearly 10% after the distributor of beauty products Wednesday reported fiscal Q4 earnings and revenue below Street views, citing hurricane disruptions. Adjusted earnings in the quarter ended Sept. 30 were of $0.45, two pennies below the Street view as compiled by Capital IQ, though up from $0.41 a year ago. Revenue was of $974.2 million, below the Street view of $990.0 million, and below the $976.4 million reported a year earlier. In the next FY, the company said it expects "solid growth" in full-year adjusted EPS.

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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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