Exchange-Traded Funds, Equity Futures Lower Pre-Bell Wednesday Ahead of FOMC Meeting Minutes

MT Newswires Live10-09

The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was down 0.1% and the actively traded Invesco QQQ Trust (QQQ) was 0.2% lower in Wednesday's premarket activity, ahead of the Federal Reserve's latest meeting minutes releasing later in the day.

US stock futures were also lower, with S&P 500 Index futures down 0.1%, Dow Jones Industrial Average futures slipping 0.04%, and Nasdaq futures retreating 0.1% before the start of regular trading.

US mortgage applications dropped 5.1% for the week ended Oct. 4 as mortgage rates surged to their highest level since August, driven by strong September job numbers, according to the Mortgage Bankers Association Wednesday.

The August wholesale inventories report will be released at 10 am ET, followed by the weekly EIA petroleum status bulletin at 10:30 am ET.

The Federal Reserve is slated to release minutes of its most recent policy meeting at 2 pm ET.

Dallas Fed President Lorie Logan speaks at 9:15 am ET, Chicago Fed President Austan Goolsbee at 10:30 am ET, Richmond Fed President Thomas Barkin at 12:15 pm ET, Fed Vice Chair Philip Jefferson at 12:30 pm ET, Boston Fed President Susan Collins at 5:30 pm ET, and San Francisco Fed President Mary Daly speaks at 6 pm ET.

In premarket action, bitcoin was down by 0.2% and the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.7% lower.

Power Play:

Energy

The iShares US Energy ETF (IYE) was inactive, while the Energy Select Sector SPDR Fund (XLE) was down by 0.4%.

Delek Logistics Partners LP (DKL) was down nearly 10% before Wednesday's opening bell after the company said late Tuesday it priced a public offering of about 3.8 million common units at $39 per unit.

Winners and Losers:

Technology

Technology Select Sector SPDR Fund (XLK) retreated marginally by 0.01%, and the iShares US Technology ETF (IYW) was also marginally down by 0.02%, while the iShares Expanded Tech Sector ETF (IGM) was inactive. Among semiconductor ETFs, SPDR S&P Semiconductor ETF (XSD) was inactive, while the iShares Semiconductor ETF (SOXX) rose by 0.1%.

Reddit (RDDT) stock was up nearly 3% in recent Wednesday premarket activity after Jefferies initiated the online forum at buy with a $90 price target.

Financial

Financial Select Sector SPDR Fund (XLF) rose marginally by 0.04%. Direxion Daily Financial Bull 3X Shares (FAS) was down 0.2%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.01% higher.

The9 (NCTY) shares were down 3% pre-bell Wednesday after the company said that its Shanghai The9 Information Technology unit signed a joint venture agreement with Shaoxing TongZe Network Technology to operate an artificial intelligence algorithm and big data marketing business.

Industrial

Industrial Select Sector SPDR Fund (XLI) retreated 0.2%, while the Vanguard Industrials Index Fund (VIS) advanced 0.1%. The iShares US Industrials ETF (IYJ) was inactive.

Boeing (BA) stock was down 1.5% before the opening bell after media outlets reported the company had withdrawn its recent pay offer of a 30% raise to about 33,000 US workers as negotiations with the striking union broke down. Reuters also reported that Boeing is exploring options to raise money by selling stock and equity-like securities as the planemaker tries to avoid a potential downgrade of its credit rating to junk status.

Health Care

The Health Care Select Sector SPDR Fund (XLV) advanced 0.1%. The Vanguard Health Care Index Fund (VHT), the iShares US Healthcare ETF (IYH), and the iShares Biotechnology ETF (IBB) were inactive.

Ocugen (OCGN) stock was up 1.2% premarket after the company said that the US Food and Drug Administration had lifted the clinical hold on its investigational new drug application for the phase 1 trial of its experimental drug, OCU200, a recombinant fusion protein used to treat diabetic macular edema.

Consumer

The Consumer Staples Select Sector SPDR Fund (XLP) gained 0.2%, while the Vanguard Consumer Staples Fund (VDC) was inactive. The iShares US Consumer Staples ETF (IYK) was inactive, and the Consumer Discretionary Select Sector SPDR Fund (XLY) was flat. The VanEck Retail ETF (RTH) and the SPDR S&P Retail ETF (XRT) were inactive.

Royal Caribbean Cruises (RCL) shares were up 2% pre-bell after Citigroup raised its price target for the company to $253 from $204.

Commodities

Front-month US West Texas Intermediate crude oil fell 0.1% to $73.65 per barrel on the New York Mercantile Exchange. Natural gas was down 0.8% at $2.71 per 1 million British Thermal Units. United States Oil Fund (USO) declined 0.5%, while the United States Natural Gas Fund (UNG) retreated 0.1%.

Gold futures for December advanced 0.1% to $2,636.90 an ounce on the Comex, while silver futures rose 1% to $30.92 an ounce. SPDR Gold Shares (GLD) retreated 0.2%, and iShares Silver Trust (SLV) was 0.4% lower.

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