ETF Update: ETFs, Futures Point Higher Ahead of Labor Market, Consumer Credit Data

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

SPDR Select Sector Fund – Financial ( XLF ): +0.04%

SPDR S&P 500 ( SPY ): +0.1%

iShares MSCI Emerging Index Fund ( EEM ): +0.1%

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

VanEck Vectors Gold Miners ETF ( GDX ): -0.5%

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM and IVV inched higher. Actively traded PowerShares QQQ (QQQ) was up 0.2%.

U.S. stock futures were pointing to a modestly higher open on Monday as the slew of earnings releases started to wind down and ahead of key readings on the U.S. economy.

In economic data news, the labor market conditions index for July will be reported at 10 am ET, with expectations for a rise to a solid 2.0 vs 1.5 in June, according to data compiled by Econoday.

At 3:00 p.m., forecasters see consumer credit rising $16 billion in June.

Also looking ahead, Federal Reserve Presidents James Bullard and Neel Kashkari are scheduled to give speeches.

Power Play: 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.

First Data (FDC) was down 5.1% after the company reported Monday Q2 adjusted net profit of $0.40 per share, up from $0.35 per share in the prior year period and in line with the Street estimate. Total revenues were $3.03 billion, up from $2.93 billion reported for the same period last year and higher than the $2.98 billion Street estimate.

Winners and Losers

Financial

Select Financial Sector SPDRs ( XLF ) was up 0.3%. Direxion Daily Financial Bull 3X shares (FAS) and its bearish counterpart, FAZ, were flat.

Energy

Dow Jones U.S. Energy Fund (IYE) was flat and Energy Select Sector SPDR (XLE) was down 0.2%

Kosmos Energy (KOS) reported Q2 adjusted loss of $0.02 per share, compared with the prior-year period’s $0.28 loss per share. Analysts polled by Capital IQ were expecting a loss of $0.04 per share. Revenue was $146.5 million, up from $45.7 million in the same quarter last year. The Street view is for revenue of $168.7 million. Production from the TEN fields in Ghana in the quarter averaged about 45,000 bopd and is on track to achieve or exceed the operator’s 2017 guidance of 50,000 bopd.

Commodities

Crude was down 1.2%. United States Oil Fund (USO) was down 1%. Natural gas was flat while United States Natural Gas Fund (UNG) was down 0.5%.

Gold was down 0.2%. SPDR Gold Trust (GLD) was down 0.1%. Silver was down 0.7% while iShares Silver Trust (SLV) was down 0.6%.

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.

MyoKardia (MYOK) was up 39.1% after the company reported positive topline data from its phase 2 study of mavacamten in symptomatic, obstructive hypertrophic cardiomyopathy (oHCM) patients. The cohort met the primary endpoint of change in post-exercise peak left ventricular outflow tract (LVOT) gradient from baseline to week 12 as well as key secondary endpoints, including peak oxygen consumption. Based on these results, MyoKardia is planning for its next study to be a pivotal study, which it expects to initiate by the end of the year.

The company also reported a Q2 loss per share of $0.41, compared to a loss of $0.37 for the same period last year, and missing the Capital IQ consensus forecast of a loss of $0.37. Revenues for the quarter were $5.6 million, up from $3.5 million for the year-ago quarter, and below the analyst forecast of $6.7 million.

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.

Marriott International (MAR) was up 3.5% after the company signed a definitive agreement with Alibaba (BABA) to form a joint venture to market Marriott hotel services to outbound Chinese tourists. The companies said Marriott would be marketed to 500 million mobile monthly active users across Alibaba platforms. No terms disclosed. The new joint venture will manage Marriott’s storefront on Fliggy, Alibaba’s travel service platform. The companies will also market directly to Alibaba’s customer base. The companies said China’s travelers are expected to take 700 million international trips in the next five years.


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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