ETF Preview: ETFs Lower, Futures Mixed Following Upbeat PPI Data

Active broad-market exchange-traded funds at the close of Tuesday's regular session:

SPDR S&P 500 ( SPY ): +0.08%

iShares S&P 500 ( IVV ): +0.14%

PowerShares QQQ ( QQQ ): +0.07%

iShares Russell 2000 ( IWM ): -0.98%

iShares Russell 1000 Growth ( IWF ): +0.43%

iShares MSCI Emerging Markets Index (EEM): +0.38%

United States Oil Fund (USO): +1.23%

SPDR Gold Shares (GLD): -0.27%

Select Financial Sector SPDRS (XLF): -0.09%

Pre-Market Movers

SPY, -0.15%

IWM, -0.30%

EEM, +0.54%

QQQ, -0.36%

EWJ, -0.44%

Broad Market Indicators

Most broad-market exchange-traded funds, including SPY, IWM, and IVV, were weaker in pre-market trading . Likewise, the actively traded PowerShares QQQ ( QQQ ) edged lower, down 0.36%.

U.S. stock futures were mixed ahead of Tuesday's open following the report that U.S. producer prices increased a seasonally adjusted 0.6% in April, beating expectations. Excluding food and fuel, core PPI grew 0.3%, also topping forecasts. In corporate news, earnings from Deere (DE) and Macy's (M) will be in focus. And later, Richmond Federal Reserve President Jeffrey Lacker will be giving opening remarks at a district bank conference at 10:30 am, ET. Lacker is a non-voting member of the Fed's policy committee.

Power Play: Health Care

Health Care SPDR (XLV), iShares Dow Jones US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were flat. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) was also unchanged.

In corporate news, GlaxoSmithKline (GSK) American depositary shares were down some 2% after specialty pharmaceutical company Pernix Therapeutics (PTX) said it agreed to buy from the health-care giant the U.S. rights to Treximet for the acute treatment of migraine attacks with or without aura in adults for upwards of $250 million. Under the terms of the deal, Pernix will make an upfront payment to GSK of $250 million for the U.S rights to Treximet. In addition, Pernix said it plans to seek an extension of the exclusivity of Treximet with the first-ever pediatric indication (age 12 to 17) for any sumatriptan treatment, expected to be filed by the end of 2014, as well as additional life-cycle opportunities that are being explored. Pernix will pay GSK additional consideration of $17 million upon receipt of updated Food and Drug Administration Written Request for pediatric exclusivity. PTX shares climbed 15% in pre-market trading.

Winners and Losers


Select Financial Sector SPDRs (XLF) was flat. Direxion Daily Financial Bull 3X shares (FAS) was down 0.33%. Its bearish counterpart, FAZ, was up 0.51%.

Among financial stocks, Santander (SAN) slipped lower in pre-market trading, down 0.20% after Reuters reported that the bank is close to selling its securities custody business in a deal that could be worth up to $1.4 billion.


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. SPDR S&P International Technology Sector ETF (IPK) was also quiet in pre-market trading.

Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were unchanged as well.

In corporate news, VimpelCom (VIP) American Depositary Receipts were down more than 3% after the telecommunications company reported that net income attributable to shareholders dropped to $39 million, or $0.02 per share, in Q1 2014 from last year's $408 million, or $0.25 per share. Operating revenues were also down to $5 million from $5.6 million last year.


Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) were flat.

Among stocks, Canadian Solar (CSIQ) was up more than 1% after saying it will build 3.6 MW solar systems that will span across seven IKEA sites located in Victoria, New South Wales, and Queensland. The solar project will generate enough energy to offset approximately 4,000 tonnes of CO2 annually. Financial terms of the transaction weren't disclosed.


Crude was up 0.37%; natural gas was up 0.73%. United States Oil Fund (USO) was up 0.27% while United States Natural Gas Fund (UNG) was up 0.41%.

Gold was up 1.07% and silver was up 1.99%. Among rare metal funds, SPDR Gold Trust (GLD) was up 1.03% and iShares Silver Trust (SLV) was up 1.86%.


Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were unchanged pre-market after seeing modest gains in the previous session.

Among stocks, Macy's (M) was up more than 1% after it reported Q1 earnings of $0.60, one cent better than the analyst consensus on Capital IQ. Sales were $6.27 billion, below expectations of $6.45 billion. Looking forward to FY 2014, the company continues to expect sales growth in the range of 2.5% to 3%, and it reiterated its EPS guidance of $4.40 to $4.50. The Street is at $4.49 per share. Macy's also announced a 25% increase in its dividend on common stock and a $1.5 billion increase in its share repurchase authorization.

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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