ETF Preview: ETFs, Stocks Mixed to Lower on Payrolls Miss\\
Active broad-market exchange-traded funds in Wednesday's pre-market session:
iShares MSCI Emerging Index Fund ( EEM ): -0.1%
SPDR S&P 500 ( SPY ): -0.1%
SPDR Select Sector Fund - Financial ( XLF ): -0.01%
VanEck Vectors Gold Miners ETF ( GDX ): +0.9%
iShares Russell 2000 ETF ( IWM ): -0.2%
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM and IVV were edging lower. Actively traded PowerShares QQQ (QQQ) was down 0.2%.
U.S. stock futures were mixed to lower following a miss on the September ADP private payrolls, which came out at 135,000 vs 140,000 estimates, with the August figure revised to 228,000 from 237,000.
Reports that Federal Reserve Governor Jerome Powell, one of the staunchest doves on the Fed board, is favored by President Donald Trump to replace Janet Yellen when her term as Fed Chair expires in February, saw selling pressure mitigated somewhat.
In news abroad, the ongoing Spanish constitutional crisis, triggered by an illegal referendum in the region of Catalonia, continued to weigh on Spanish stocks, with banks hardest hit.
Power Play: Health Care
Health care funds Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were flat. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.3%.
CytomX Therapeutics (CTMX) was poised to open Wednesday at an all-time record high price, streaking to a more than a 34% gain and $25.48 a share in the day's pre-market trading after the cancer immunotherapy company Tuesday night announced a strategic collaboration with Amgen (AMGN) to co-develop potential genetic oncology medications.
Winners and Losers
Financial
Select Financial Sector SPDRs ( XLF ) was down 0.1%. Direxion Daily Financial Bull 3X shares (FAS) was flat and its bearish counterpart, FAZ, was up 0.7%.
Banco Bradesco SA (BBD) fell in after-hours trading Tuesday night, dropping about 1.6% to $11.47 per American depository share after disclosing a federal court judge in New York late Friday sided with the Brazilian bank company by identifying problems with a securities class action suit against Banco Bradesco but also gave the lead plaintiff 30 days to resolve those deficiencies and re-file an amended complaint.
The U.S. District judge for the Southern District of New York also ruled to limit the proposed class to investors who purchased Banco Bradesco preferred ADS between Aug. 8, 2014, to July 27, 2016, according to a new regulatory filing. The bank had filed a motion seeking to dismiss the suit filed in June 2016.
Technology
Tech funds 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 also flat.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were inactive.
Baidu (BIDU) was narrowly higher in Wednesday pre-market, climbing almost 1% and reversing a small decline in late trading Tuesday that followed the Chinese internet search engine company saying it has opened a second research and development facility in Silicon Valley as it doubles down on efforts to recruit global talent specializing in artificial Intelligence and autonomous driving.
Energy
Dow Jones U.S. Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was down 0.2% in pre-market trade.
Lilis Energy (LLEX), an energy exploration and development company, gained almost 9% after it disclosed it has agreed to acquire over 4,000 acres in the Delaware Basin from a private seller for approximately $45.6 million in cash.
The acquisition will increase the company's acreage to over 15,000 net acres, exceeding its year end 2017 acreage guidance. The deal is expected to close in November.
Commodities
Crude was down 0.1%. United States Oil Fund (USO) was up 0.1%. Natural gas was up 1.9% while United States Natural Gas Fund (UNG) was down 2.1%.
Gold was up 0.4%. SPDR Gold Trust (GLD) was up 0.4%. Silver was up 0.2% while iShares Silver Trust (SLV) was up 0.3%.
Consumer
Consumer staples funds 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.
Office Depot (ODP) slumped in Wednesday's pre-bell session trading, sinking almost 10% after the specialty retailer said late Tuesday it has acquired CompuCom Systems Inc from Thomas H. Lee Partners for $1 billion, which includes repaid CompuCom debt and an 8% equity stake in Office Depot for the private-equity firm.
The company also issued its preliminary Q3 financial results and lowered its FY17 outlook. It now expects total reported sales to decline 7% to 8% during the 13 weeks ending Sept. 30, including store closings, compared with the same quarter last year, That translates into a range of $2.61 billion to $2.75 billion, compared with the analyst mean looking for around $2.63 billion in quarterly sales.
It also sees non-GAAP Q3 operating income between $125 million to $135 million. For the 12 months ending in December, Office Depot is now modeling a non-GAAP operating profit in a range of $400 million to $425 million, excluding the impact of the CompuCom transaction, down from its previous estimate expecting around $500 million in FY17 operating income.
Office Depot said the deal was part of its efforts to shift from solely selling office products to a broader business services and technology platform.
The views and opinions expressed
herein are the views and opinions of the author and do not necessarily
reflect those of Nasdaq, Inc.
iShares MSCI Emerging Index Fund ( EEM ): -0.1%
SPDR S&P 500 ( SPY ): -0.1%
SPDR Select Sector Fund - Financial ( XLF ): -0.01%
VanEck Vectors Gold Miners ETF ( GDX ): +0.9%
iShares Russell 2000 ETF ( IWM ): -0.2%
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM and IVV were edging lower. Actively traded PowerShares QQQ (QQQ) was down 0.2%.
U.S. stock futures were mixed to lower following a miss on the September ADP private payrolls, which came out at 135,000 vs 140,000 estimates, with the August figure revised to 228,000 from 237,000.
Reports that Federal Reserve Governor Jerome Powell, one of the staunchest doves on the Fed board, is favored by President Donald Trump to replace Janet Yellen when her term as Fed Chair expires in February, saw selling pressure mitigated somewhat.
In news abroad, the ongoing Spanish constitutional crisis, triggered by an illegal referendum in the region of Catalonia, continued to weigh on Spanish stocks, with banks hardest hit.
Power Play: Health Care
Health care funds Health Care SPDR (XLV), Vanguard Health Care ETF (VHT) and iShares Dow Jones US Healthcare (IYH) were flat. Biotechnology fund iShares NASDAQ Biotechnology Index (IBB) was up 0.3%.
CytomX Therapeutics (CTMX) was poised to open Wednesday at an all-time record high price, streaking to a more than a 34% gain and $25.48 a share in the day's pre-market trading after the cancer immunotherapy company Tuesday night announced a strategic collaboration with Amgen (AMGN) to co-develop potential genetic oncology medications.
Winners and Losers
Financial
Select Financial Sector SPDRs ( XLF ) was down 0.1%. Direxion Daily Financial Bull 3X shares (FAS) was flat and its bearish counterpart, FAZ, was up 0.7%.
Banco Bradesco SA (BBD) fell in after-hours trading Tuesday night, dropping about 1.6% to $11.47 per American depository share after disclosing a federal court judge in New York late Friday sided with the Brazilian bank company by identifying problems with a securities class action suit against Banco Bradesco but also gave the lead plaintiff 30 days to resolve those deficiencies and re-file an amended complaint.
The U.S. District judge for the Southern District of New York also ruled to limit the proposed class to investors who purchased Banco Bradesco preferred ADS between Aug. 8, 2014, to July 27, 2016, according to a new regulatory filing. The bank had filed a motion seeking to dismiss the suit filed in June 2016.
Technology
Tech funds 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 also flat.
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) were inactive.
Baidu (BIDU) was narrowly higher in Wednesday pre-market, climbing almost 1% and reversing a small decline in late trading Tuesday that followed the Chinese internet search engine company saying it has opened a second research and development facility in Silicon Valley as it doubles down on efforts to recruit global talent specializing in artificial Intelligence and autonomous driving.
Energy
Dow Jones U.S. Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was down 0.2% in pre-market trade.
Lilis Energy (LLEX), an energy exploration and development company, gained almost 9% after it disclosed it has agreed to acquire over 4,000 acres in the Delaware Basin from a private seller for approximately $45.6 million in cash.
The acquisition will increase the company's acreage to over 15,000 net acres, exceeding its year end 2017 acreage guidance. The deal is expected to close in November.
Commodities
Crude was down 0.1%. United States Oil Fund (USO) was up 0.1%. Natural gas was up 1.9% while United States Natural Gas Fund (UNG) was down 2.1%.
Gold was up 0.4%. SPDR Gold Trust (GLD) was up 0.4%. Silver was up 0.2% while iShares Silver Trust (SLV) was up 0.3%.
Consumer
Consumer staples funds 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.
Office Depot (ODP) slumped in Wednesday's pre-bell session trading, sinking almost 10% after the specialty retailer said late Tuesday it has acquired CompuCom Systems Inc from Thomas H. Lee Partners for $1 billion, which includes repaid CompuCom debt and an 8% equity stake in Office Depot for the private-equity firm.
The company also issued its preliminary Q3 financial results and lowered its FY17 outlook. It now expects total reported sales to decline 7% to 8% during the 13 weeks ending Sept. 30, including store closings, compared with the same quarter last year, That translates into a range of $2.61 billion to $2.75 billion, compared with the analyst mean looking for around $2.63 billion in quarterly sales.
It also sees non-GAAP Q3 operating income between $125 million to $135 million. For the 12 months ending in December, Office Depot is now modeling a non-GAAP operating profit in a range of $400 million to $425 million, excluding the impact of the CompuCom transaction, down from its previous estimate expecting around $500 million in FY17 operating income.
Office Depot said the deal was part of its efforts to shift from solely selling office products to a broader business services and technology platform.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
For the mid & smallcaps to outperform the frontliners, we need a broad recovery in the economy with improved credit offtake, better print of IIP, and GDP growth. Demat account
ReplyDelete