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ETF Preview: ETFs Weaker, But Stocks Edge Higher as Washington Re-Opens Talks on Debt-Ceiling, Government Shutdown

Active broad-market exchange-traded funds in Thursday's regular session:

SPDR S&P 500 ( SPY ): +2.22%

iShares S&P 500 ( IVV ): +2.19%

PowerShares QQQ ( QQQ ): +2.12%

iShares Russell 2000 ( IWM ): +2.38%

iShares Russell 1000 Growth ( IWF ): +2.19%

iShares MSCI Emerging Markets Index (EEM): +2.33%

United States Oil Fund (USO): +1.48%

SPDR Gold Shares (GLD): -1.46%

Select Financial Sector SPDRS (XLF): +2.85%

Pre-Market Most Active:

SPY, -0.21%

EEM, -0.30%

VXX, -0.14%

XLF, flat

IWM, -0.22%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are weaker. Actively traded PowerShares QQQ ( QQQ ) is down 0.14%.

U.S. stock futures are faring better, inching higher ahead of the open with markets maintaining their cautious optimism as Washington seemed to be making progress with the budget negotiations. JPMorgan (JPM) and Wells Fargo (WFC) reported mostly better-than-expected financial results. Up ahead, the preliminary reading for the October Michigan sentiment will be reported at $9:55 am ET.

Winners and Losers

Technology -

Tech ETFs 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) are leaning higher.

Semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) look to open in the green.

SPDR S&P International Technology Sector ETF (IPK) is headed for a flat to higher open.

In sector news, E2open (EOPN) is down 14.53% in pre-market trading, pulling back from after hours losses of some 26%, after it issued downbeat guidance for Q3 and FY13. The company expects Q3 loss per share of $0.21 - $0.18 on revenues of $18.1 million - $18.6 million, below the Capital IQ consensus estimate of loss of $0.04 per share on revenues of $20.80 million. For FY14, the company sees loss per share of $0.57 - $0.53 on revenues of $73.2 million - $74.2 million. The Street view is for loss of $0.34 per share on revenues of $77.62 million. EOPN reported a Q2 loss of $0.10 per share, better than the consensus of $0.15 loss per share. Revenues were $18.6 million, also above the analyst estimate of $17.23 million.

Energy -

Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) are heading for a weaker start.

In sector news, Baker Hughes (BHI) said the number of wells onshore was at 9,175 in Q3, up 2% from Q2, but down 3% from a year ago. The oilfield services company said that due to improved drilling efficiencies, the average US onshore drilling rig is now producing 2% more wells compared to three months ago.

Commodities -

Crude for November delivery is seeing sharp losses, down 1.27%; United States Oil Fund (USO) is down 0.78%. November natural gas is up 1.16%; United States Natural Gas Fund (UNG) is up 0.10.

Gold and silver for December delivery are also weaker, down 0.48% and 1.19%, respectively. Among rare metal funds, SPDR Gold Trust (GLD) is up 0.19%; iShares Silver Trust (SLV) is up 0.05%.

Consumer -

Consumer ETFs Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) are pointing to a firmer start.

In sector news, Safeway Inc. (SWY) is up 7.06% after the food and drug retailer reported late Thursday stronger-than-expected results and guidance and said that as part of its plan to exit the Chicago market, it has sold 4 of its Dominick's stores in the greater Chicago area. The company said it decided to exit the Chicago market to focus its efforts in other operating areas where its business is deemed stronger. The stores were sold to New Albertsons, Inc., which operates Jewel-Osco grocery stores.

Healthcare -

Healthcare ETFs Health Care SPDR (XLV), Vanguard Health Care ETF (VHT), and iShares Dow Jones US Healthcare (IYH) are pointing to a positive start. Biotech ETF iShares NASDAQ Biotechnology Index (IBB) is also pointing higher.

In corporate news, Osiris Therapeutics, Inc. (OSIR) is up 20.78% after the stem cell therapeutic company announced late Thursday that it signed an agreement to sell its culture-expanded mesenchymal stem cell business, including Prochymal, to a wholly-owned subsidiary of Mesoblast Limited. The transaction is worth up to $100 million in initial consideration and milestone payments. Additionally, Osiris will receive royalty payments on sales of Prochymal and other products utilizing the acquired technology.

Industrial -

Industrial ETFs iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ), Vanguard Industrials (VIS) and Select Sector SPDR-Industrial (XLI) are expected to open higher.

Among stocks, Seaspan (SSW) is up 20.68% after the independent charter owner of containerships said it has terminated its previously announced public offerings of common shares and convertible notes, saying it would not be in the best interests of its shareholders.

Power Play -

Financial -

Select Financial Sector SPDRs (XLF) is flat, but closed the previous session higher. Direxion Daily Financial Bull 3X shares (FAS) is down 0.13%. Its bearish counterpart, FAZ, is up 0.25%.

Among financial stocks, JPMorgan (JPM) was up 2.11% after reporting adjusted Q3 earnings of $1.42 per share, above the analyst consensus of $1.28 per share on Capital IQ.

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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