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ETF Update: ETFs, Futures Point Lower Ahead of Manufacturing PMI Data

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

SPDR S&P 500 ( SPY ): +0.3%

SPDR Select Sector Fund - Financial ( XLF ): +0.6%

iShares MSCI Emerging Index Fund ( EEM ): +1.3%

PowerShares QQQ Trust, Series 1 ( QQQ ): +0.4%

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): -0.4%

Broad Market Indicators

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

US stock futures were pointing to a lower open, with trading expected to be quiet as investors return from the New Year holiday break.

Crude oil had earlier seen gains as concerns over the pace of oil production in Iran were sparked by anti-government protests.

In economic data news, the manufacturing Markit Purchasing Managers' Index for December will be out at 9:45 am ET. It is expected to rise to 55.0 (consensus range: 55.0 to 55.5) matching the preliminary read and versus the 53.9 November final.

Power Play: Health Care

Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were quiet. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was down 1%.

Soligenix (SNGX) jumped 15% after it reported that it has been granted a US patent entitled "Novel Peptides and Analogs for Use in the Treatment of Oral Mucositis." The newly issued patent claims therapeutic use of dusquetide and related innate defense regulator (IDR) analogs, and adds to composition of matter claims for dusquetide and related analogs that have been granted in the US and worldwide. Dusquetide previously demonstrated positive results in a Phase 2 oral mucositis clinical trial and a pivotal Phase 3 study was recently initiated in 2017.

Winners and Losers

Financial

The Select Financial Sector SPDRs ( XLF ) was up 0.6%. Direxion Daily Financial Bull 3X shares (FAS) was flat while its bearish counterpart FAZ was down 0.8%.

Deutsche Bank AG (DB) will return to its "normal system of variable compensation", and also raise salaries in some areas, according to its CEO John Cryan, who was interviewed by the Boersen-Zeitung newspaper over the weekend.

Technology

Technology Select Sector SPDR ETF (XLK) and other tech funds 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 inactive.

Sirius XM Holdings (SIRI) fell more than 1% after JP Morgan downgraded shares to underweight from a neutral rating. Sirius' average rating among analysts is a hold, with an average price target of $5.99.

Energy

Dow Jones US Energy Fund (IYE) was quiet in pre-market trading and Energy Select Sector SPDR (XLE) was up 0.6%.

BP (BP) rose marginally after it said it expects its future U.S. after-tax earnings to be positively affected by the recently-enacted changes to U.S. corporate taxes. The company expects to record $1.5 billion in non-cash charges in Q4 due to the lowering of the tax rate.

Commodities

Crude was up 0.1%. United States Oil Fund (USO) was up 0.7%. Natural gas was up 1.4% while United States Natural Gas Fund (UNG) was up 1.2%.

Gold was up 0.4%. SPDR Gold Trust (GLD) was up 0.6%. Silver was down 0.1%, while iShares Silver Trust (SLV) was up 0.8%.

Consumer

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

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 quiet in pre-market trade.

American depositary receipts of Tata Motors Ltd (TTM) rose 2.8% after reporting that for December 2017, its Commercial and Passenger Vehicles domestic sales increased to 54,627 units from 35,825 units in December 2016, a growth of 52%. The company attributed the increase to growing demand for vehicles across segments, new product launches and strategic customer initiatives.

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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