ETF Report: ETFs, Futures Mostly Higher Ahead of Fed's Policy Statement

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Active broad-market exchange-traded funds as the session opened Wednesday:

SPDR Select Sector Fund - Financial ( XLF ): +1.4%

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

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): +0.1%

iShares MSCI Emerging Index Fund ( EEM ): +0.02%

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

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV were higher. Actively traded PowerShares QQQ (QQQ) was up 0.02%.

U.S. stock futures were higher as the regular session opened Wednesday, in line with the broader market as investors digest another batch of earnings and look ahead to the Fed's latest policy decision.

In economic data, June new home sales will be released at 10 a.m. ET. Meanwhile, the weekly MBA Mortgage Applications Index rose 0.4%.

Crude oil futures logged gains after the American Petroleum Institute (API) reported Tuesday a draw of 10.2 million barrels from stockpiles. However, investors are still looking ahead to the Department of Energy oil inventory figures, which are set for release at 10:30 a.m. ET.

Power Play: Health Care

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

Tetraphase Pharmaceuticals (TTPH) soared 23% after the company said late Tuesday top-line results were positive from IGNITE4, a phase 3 clinical trial evaluating the efficacy and safety of twice-daily intravenous eravacycline compared to meropenem for the treatment of patients with complicated intra-abdominal infections. The results of IGNITE4, which enrolled 500 patients, demonstrated statistical non-inferiority of eravacycline to meropenem for the primary efficacy endpoint of clinical response at the test-of-cure visit. Tetraphase plans to submit a new drug application to the Food and Drug Administration in Q1 of 18. It also remains on track to submit a Marketing Authorization Application to the European Medicines Agency during Q3.

Winners and Losers


Select Financial Sector SPDRs ( XLF ) was up 1.4%. Direxion Daily Financial Bull 3X shares (FAS) was up 3.3% and its bearish counterpart, FAZ, was down 3.4%.

BOK Financial (BOKF) was up 1.8% after it reported Q2 EPS of $1.35 per share, up from $1.00 per share a year ago, which beat the $1.30 per share consensus of analysts polled by Capital IQ. Revenue, as a combination of net interest income and total fees and commissions, amounted to $382.7 million, up from $362.8 million in the same period a year ago. Analysts had expected $378.2 million.


Technology Select Sector SPDR ETF (XLK) and other tech stocks 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 pointing higher. SPDR S&P International Technology Sector ETF (IPK) was flat.

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

Silicon Laboratories (SLAB) was up 2.4% after it reported non-GAAP diluted EPS of $0.79, up from last year's $0.63, exceeding the Capital IQ consensus of $0.71. Revenues grew to $190.1 million from $174.9 million, also beating the mean forecast of $186.5 million provided by Capital IQ. For Q3, the company expects revenues in the range of $193 million to $199 million and non-GAAP diluted EPS of between $0.78 and $0.84. Analysts are expecting revenues of $192.8 million and EPS of $0.78 per share.


Industrial funds Select Sector SPDR-Industrial (XLI), Vanguard Industrials (VIS) and iShares Trust Dow Jones U.S. Industrial Sector Index Fund (IYJ) were higher.

Wabash National (WNC) fell 11.5% after the company reported late Tuesday Q2 adjusted earnings of $0.37 per share, compared with the prior-year period's $0.55 per share. Analysts polled by Capital IQ were expecting EPS of $0.42. Revenue was $435.9 million, down from $471.4 million in the same quarter last year. The Street view was for revenue of $436.9 million. The company now expects fiscal 2017 EPS of $1.44 - $1.50 versus the Street view of $1.53. The prior guidance range was for $1.44 - $1.56 EPS. It also updated its full year shipment guidance to 53,000 to 56,000 trailers, from the previous shipment guidance of 52,000 to 56,000 trailers.


Dow Jones U.S. Energy Fund (IYE) was up 0.5% while Energy Select Sector SPDR (XLE) was up 1.9%.

Seadrill (SDRL) tumbled 12.9% after it warned that its comprehensive restructuring plan will likely involve chapter 11 proceedings. The company said has reached agreement with lenders to extend the negotiating period until Sept. 12. It noted that its business operations remain unaffected by these restructuring efforts and that it expects to continue to meet its ongoing customer and business counter party obligations.


Crude was up 1%. United States Oil Fund (USO) was up 4.2%. Natural gas was down 0.8% while United States Natural Gas Fund (UNG) was up 0.8%.

Gold was down 0.5%. SPDR Gold Trust (GLD) was down 0.6%. Silver was down 0.8% while iShares Silver Trust (SLV) was down 0.3%.


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

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 in the red.

Tupperware Brands (TUP) was down 1.5% after it reported fiscal Q2 sales rose 1% to $572.9 million from the year-ago period but missed the CapIQ mean for $580.19 million. Adjusted earnings in the quarter ended July 1 rose 4% to $1.21 from last year and beat forecasts for $1.20. The company said it has decided to wind-down Beauticontrol's operations over approximately the next 60 to 90 days. For fiscal Q3, the company expects adjusted EPS between $0.91 and $0.96, below the Street's $0.98. Sales are seen growing 2% to 4% from the prior year period. FY adjusted EPS is seen between $4.66 and $4.76, in line with estimates of $4.70. Sales are seen up 3% to 4% from last year.

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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