ETF Preview: ETFs, Futures Higher As Street Mulls Consumer Spending, Personal Income Data; Markit PMI, ISM Report Still Ahead

Active broad-market exchange-traded funds in Tuesday’s pre-market session:

iShares MSCI Emerging Index Fund ( EEM ): +0.6%

SPDR Select Sector Fund – Financial ( XLF ): +1.2%

SPDR S&P 500 ( SPY ): +0.2%

iPath S&P 500 VIX Short Term Futures ETN ( VXX ): -1.6%

Broad Market Indicators

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

U.S. stock futures were on track to open higher, with the Dow Industrials set for another fresh record high, as investors digested a slew of economic data as well as the latest batch of earnings reports.

Consumer spending for June rose 0.1% — and although this matches the smallest increase of 2017, it was still in line with expectations. Personal income was unchanged in June, versus an expected 0.4% rise.

Still ahead, the Markit manufacturing PMI for July will be reported at 9:45 a.m. ET; the July ISM manufacturing report and June construction spending will both be out 10 am ET.

Investors are also looking ahead to the release of Apple’s (AAPL) financial results, later in the after hours session.

Power Play: Consumer

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

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 flat.

Lumber Liquidators (LL) rose 19.8% after the company reported Q2 earnings of $0.16 per share, compared with the prior-year period’s $0.45 loss per share. Analysts polled by Capital IQ were expecting a $0.08 loss per share. Revenue was $263.5 million, up from $238.1 million in the same quarter last year. The Street view was for revenue of $256.9 million.

Winners and Losers

Financial

Select Financial Sector SPDRs ( XLF ) was 1.2%. Direxion Daily Financial Bull 3X shares (FAS) was up 2.3% and its bearish counterpart, FAZ, was down 2.6%.

CME Group (CME) reported Q2 adjusted earnings of $1.23 per share, up from $1.14 a year earlier, beating Capital IQ’s poll estimate of $1.21 for the quarter. Revenues rose to $924.6 million from $906.4 million, missing the $931.1 million estimate.

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 flat. 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 also quiet.

Sprint (S) was up 4% after it reported fiscal Q1 earnings of $0.05 per share, compared to a loss of $0.08 in the same period a year ago. Analysts polled by CapIQ expected a loss of $0.05 per share. Total revenues in the quarter ended June 30 were $8.16 billion, down from $8.54 billion in the same period a year ago and exceeded the Street projection of $8.14 billion. The company meanwhile revised its FY adjusted EBITDA guidance to a range of $10.8 billion to $11.2 billion from a prior range of $10.7 billion to $11.2 billion. Full year operating income guidance was revised to a range of $2.1 billion to $2.5 billion from a prior expectation of $2 billion to $2.5 billion.

Energy

Dow Jones U.S. Energy Fund (IYE) was flat while Energy Select Sector SPDR (XLE) was up 0.4%.

Phillips 66 (PSX) was up 0.5% after it reported Q2 adjusted earnings of $1.09 per diluted share compared with an income of $0.94 per share a year ago, beating the $1.01 average EPS estimate from analysts polled by Capital IQ. “In the quarter, we raised our dividend by 11% and increased share repurchases, returning $741 million to shareholders,” said CEO Greg Garland. “In our first five years as a company, we have increased the dividend at a 30% compound annual growth rate and have repurchased or exchanged 131 million shares, representing more than 20% of our initial shares outstanding.”

Commodities

Crude was down 0.8%. United States Oil Fund (USO) was down 0.2%. Natural gas was up 0.3% while United States Natural Gas Fund (UNG) was down 0.8%.

Gold was down 0.1%. SPDR Gold Trust (GLD) was down 0.4%. Silver was down 0.7% while iShares Silver Trust (SLV) was down 0.3%.

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 flat.

Pfizer (PFE) fell 0.2% after the company reported Q2 adjusted earnings of $0.67 per share, compared with the prior-year period’s $0.64 per share. Analysts polled by Capital IQ were expecting EPS of $0.66. Revenue was $12.9 billion, down 2% from $13.15 billion in the same quarter last year. The Street view was for revenue of $13.08 billion. The company raised the midpoint of its guidance range for fiscal 2017 adjusted EPS by $0.02, to a range of $2.54 – $2.60, versus the Street view of $2.55. The prior guidance range was $2.50 – $2.60. It reaffirmed its revenue guidance of $52 billion – $54 billion. Analysts are looking for $52.78 billion.


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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