Active-volume exchange-traded funds in Monday’s regular session:
SPDR S&P 500 (SPY): -2.3%
iShares S&P 500 (IVV): -2.3%
PowerShares QQQ (QQQQ): -2.1%
Select Financial Sector SPDRS (XLF): -2.6%
iShares Russell 2000 (IWM): -2.7%
iShares Russell 1000 Growth (IWF): -1.8%
iShares MSCI Emerging Markets Index (EEM): -3.6%
United States Oil Fund (USO): -2.3%
Top-volume movers in this morning’s pre-market session:
SPY, +0.2%
QQQQ, +0.4%
UNG, +3.4%
FAZ, -1.3%
DXO, +3.3%
Winners and Losers-
Major market ETFs, including the SPY, DIA, UYG and others, are firmer this morning as futures trade improved in step with upbeat economic data. Futures had chopped on either side of the even mark following a steep sell-off Monday. The PowerShares QQQ (QQQQ), which tracks the technology-studded Nasdaq Composite, is up 0.4%.
Technology Select Sector SPDR (XLK) should see increased interest closer to today’s bell. Microsoft (MSFT) is up 0.3%. Jefferies reportedly raised its price target on the stock this morning to $26 from $22 per share.
Financial stocks are modestly firmer this morning. Select Financial Sector SPDRS (XLF) is up 0.1%. The Direxion Financial Bull 3X fund (FAS) is up 1.1%; its bearish counterpart (FAZ) is down 1.3%. Within the sector, Huntington Bancshares (HBAN) is up for a second day in active volume after the stock was mentioned positively Friday night on Jim Cramer’s Mad Money show. Cramer suggested HBAN is the best speculative stock in the financial sector.
Commodities -
The United States Oil Fund (USO) is up 2.7%. Oil futures extended their gains after data showed a jump in housing starts and an increase in producer prices in May. July crude rose $1.83, or 2.6%, to $72.45 a barrel in electronic trading.
SPDR Gold Shares (GLD) is up 1.2%. August gold is up 1.2% to $938.80 an ounce after the economic data hit. iShares COMEX Gold Trust (IAU) is flat. The Market Vectors Gold Miners fund (GDX) is up 2.3% in early action. iShares Silver Trust (SLV) is up 2%.
ETF Power Play -
The SPDR S&P Retail fund (XRT) could see increased downside pressure closer to today’s bell.
Leading sector headlines, Best Buy (BBY) reports Q1 adjusted EPS of $0.42 vs $0.43 a year earlier and topping the Thomson Reuters mean analyst estimate for $0.34. Revenue rose to $10.1 billion from $9 billion a year earlier and in line with the Street view. Same-store sales fell 6.2% vs a gain of 3.7% in the same period a year earlier. The company maintains its FY 2010 guidance, expecting EPS of $2.50 to $2.90 ex-charges. The Street is at $2.79.
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The coming week is a shortened one but not without a slew of news. Investors will hear a number of economic reports including consumer confidence, gross domestic product and durable goods. Also, a number of companies are slated to report quarterly results including TiVo Inc. (TIVO), Costco Wholesale Corporation (COST), and HJ Heinz Co. (HNZ).
Last week, investors got a peak at how well retailers are faring after companies from Wal-Mart Stores (WMT) to Wet Seal Inc. (WTSLA) reported their sales results for April. For the most part, April retail sales were better-than-expected, showing signs that their declines are slowing. Next week, earnings from Wal-Mart, Macy’s Inc (M), Kohl’s Corp. (KSS) and Nordstrom Inc. (JWN) will give investors a better idea of their outlooks for the near future.
Investors will continue to hear earnings results from a number of companies this week including Starbucks (SBUX) and Motorola (MOT), just to name a few. On Wednesday, investors will also get their first peak at how well the economy fared in the first-quarter, when advanced gross domestic product is released.
Stocks have been on a role since the beginning of March, with the major averages touching their highest levels since at least mid-February. With first-quarter earnings set to start in the coming week and the unemployment report out of the way, investors will want to see if the rally can continue.
Stocks managed to close out last week higher after sinking below their November lows on concerns about the weakening economy and increasing unemployment. The financial sector managed to make some positive headway after Citigroup (C) reassured investors that the first two months of 2009 were strong.
Investors are will still be focused on technical levels this week after the major averages breached their November lows last week, dropping to levels not seen since 1997. Fourth-quarter earnings reports are also coming to a close, moving attention toward the economy and rescue plans by the Treasury, Federal Reserve and Obama Administration.
Stocks will likely continue to test their lows in the coming week after touching their lowest levels since 1997 this past week. Investors continued to get hammered with disappointing economic news including a weaker-than-expected gross domestic product and steep drop in existing home sales. Investors also digested Citigroup’s deal, in which the government and private investors will convert preferred stock into common shares.
This week, investors will continue to focus on the economic stimulus package and financial bailout plan, keeping earnings reports on the back of their minds. Aside from a few earnings reports of interest, the government will release the latest figures on inflation at the consumer and wholesale level. Inflation has been less of a concern as the price of oil, food, cars and clothes all sink. In fact, some economists are talking more about deflation and predict that the consumer price index will go negative this year.
