ETF Preview: ETFs Modestly Higher, Futures Lower On Tech Stocks Weakness; Pending Home Sales Data, EIA Report Still Ahead

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

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

SPDR Select Sector Fund - Financial ( XLF ): +0.7%

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

PowerShares QQQ Trust, Series 1 ( QQQ ): +0.3%

VanEck Vectors Gold Miners ETF ( GDX ): +0.6%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were inching higher. Actively traded PowerShares QQQ ( QQQ ) was up 0.3%.

U.S. stock futures were pointing to a lower open, once again weighed by weakness in the tech sector.

In economic data news, the advanced trade gap in goods fell by 1.8% to $65.9 billion in May. Meanwhile, the May reading for pending home sales will be released at 10 a.m. ET.

Crude oil futures were also weaker ahead of the Energy Information Administration's report on weekly crude supplies, which will be reported at 10:30 a.m. ET.

Power Play: Technology

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

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

Western Digital Corp. (WDC) was down 0.8% after it was sued by Toshiba in Japan's Tokyo District Court over claims Western Digital violated the Unfair Competition Prevention Act, among other things. The Japanese company said it is seeking a permanent injunction, damages and payment of JPY120 billion ($1.07 billion) as it claimed in the lawsuit that Western Digital has continually interfered with a bid process related to the sale of Toshiba Memory Corp. Toshiba said it filed litigation in Japan since Western Digital improperly obtained Toshiba and Toshiba Memory's trade secrets by transferring SanDisk employees to Western Digital who had access to confidential information of Toshiba and Toshiba Memory via their participation in a collaboration between SanDisk and Toshiba/Toshiba Memory.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was up 0.7%. Direxion Daily Financial Bull 3X shares (FAS) was up 1.1% and its bearish counterpart, FAZ, was flat.

Ezcorp (EZPW), a provider of pawn loans, said it would raise $125 million via convertible notes due 2024, with an overallotment option of $18.75 million. The company plans to use the proceeds to repay outstanding debt and for acquisitions.


Dow Jones U.S. Energy Fund (IYE) was quiet in pre-market trading while Energy Select Sector SPDR (XLE) was up 0.1%.

Brookfield Renewable Partners (BEP) was down 3.5% after it said late Tuesday it agreed to issue 8,304,000 L.P. units on a bought-deal basis to a syndicate of underwriters at CAD42.15 per L.P. unit ($31.8) for gross proceeds of about CAD350 million. In addition, Brookfield Asset Management (BAM) will purchase 4,943,000 L.P. units of Brookfield Renewable at the price - net of underwriting commissions - concurrent with the offering. Brookfield's interest in Brookfield Renewable after giving effect to the offering and concurrent private placement, but prior to the exercise of the underwriters' over-allotment options, will be about 60%. The aggregate gross proceeds of the offering and the concurrent private placement will be about CAD550 million.


Crude was up 0.6%. United States Oil Fund (USO) was up 1%. Natural gas was up 1.9% while United States Natural Gas Fund (UNG) was flat.

Gold was down 0.9%. SPDR Gold Trust (GLD) was up 0.5%. Silver was down 0.5% while iShares Silver Trust (SLV) was flat.

Health Care

Health care funds Health Care SPDR (XLV) was down 0.1% while other health care funds, Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH), were inactive. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.3%.

Repligen (RGEN) was down 2.2% after it said that it has priced its offering of 2.8 million shares of common stock at a price of $42.75 per share, or a 1.2% discount from the stock's previous close, for total expected gross proceeds of $120 million.The underwriters have been granted a 30-day option to purchase up to 421,052 additional shares to cover over-allotments. The offering is expected to close on or about July 3, subject to customary closing conditions.


Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) were unchanged.

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 flat.

AirMedia (AMCN) was up 13.9% after it said it has agreed to extend the termination date of its merger agreement with certain private individual buyers to Dec. 31. Under the deal, the agreement will be terminated if it has not yet been completed by June 30. The company is being acquired for $4 per American Depositary Share or $2 per ordinary share in cash.

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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