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Exchange-Traded Funds, Equity Futures Higher Pre-Bell Tuesday Amid Inflation Data

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The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.4% and the actively traded Invesco QQQ Trust (QQQ) advanced 0.9% in Tuesday's premarket activity, amid key inflation data releasing this week.

US stock futures were also higher, with S&P 500 Index futures up 0.5%, Dow Jones Industrial Average futures advancing 0.3%, and Nasdaq futures gaining 0.8% before the start of regular trading.

The US trade deficit narrowed to $55.9 billion in April from $56.6 billion in March, coming in slightly below economists' expectations of a $56.1 billion gap.

The existing home sales data for May and the wholesale inventory data for April will be released at 10:00 am ET.

In premarket action, bitcoin was down by 1.2%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 1% lower, Ether ETF (EETH) retreated by less than 1%, and Bitcoin & Ether Market Cap Weight ETF (BETH) was flat.

Power Play:

Industrial

The State Street Industrial Select Sector SPDR ETF (XLI) advanced 0.05%, while the Vanguard Industrials Index Fund (VIS) retreated by 0.8% and the iShares US Industrials ETF (IYJ) was 0.9% higher.

CECO Environmental (CECO) stock was up more than 10% before market open after the company said it now expects 2026 revenue of about $1.28 billion to $1.38 billion from its acquisition of Thermon Group, up from $940 million to $1 billion it projected previously.

Winners and Losers:

Health Care

The State Street Health Care Select Sector SPDR ETF (XLV) advanced 0.5%, the Vanguard Health Care Index Fund (VHT) was up 0.3%, while the iShares US Healthcare ETF (IYH) was flat. The iShares Biotechnology ETF (IBB) was 0.9% higher.

IDEAYA Biosciences (IDYA) stock was down more than 7% premarket after the company said late Monday it priced an underwritten public offering expected to raise about $300 million in gross proceeds.

Financial

The State Street Financial Select Sector SPDR ETF (XLF) advanced 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) was up 0.7%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 0.7% lower.

UBS Group (UBS) shares were up more than 2% pre-bell after Reuters reported that Swiss lawmakers are considering proposals that would reduce the capital burden facing UBS under planned banking reforms introduced after the collapse of Credit Suisse.

Technology

The State Street Technology Select Sector SPDR ETF (XLK) advanced 1.3%, and the iShares US Technology ETF (IYW) was 1.1% higher, while the iShares Expanded Tech Sector ETF (IGM) was up 1.5%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) increased by 2.6%, while the iShares Semiconductor ETF (SOXX) rose by 2.5%.

Cipher Digital (CIFR) shares were up more than 3% in premarket activity, following a 8.2% rise at the prior close. The company said late Monday that its Stingray Compute unit has priced an $810 million private offering of 6.0% senior secured notes due 2031 at 99.75% of face value.

Consumer

The State Street Consumer Staples Select Sector SPDR ETF (XLP) was down 0.1% and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) was up 0.1%. The iShares US Consumer Staples ETF (IYK) retreated by 0.3%. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) advanced 0.4%. The VanEck Retail ETF (RTH) increased by 0.7%, while the State Street SPDR S&P Retail ETF (XRT) was 0.5% higher.

Carnival (CCL) shares were up more than 1% pre-bell after the company deployed Konami Gaming's Synkros casino management system across the Carnival Cruise Line fleet.

Energy

The iShares US Energy ETF (IYE) was down 0.9%, while the State Street Energy Select Sector SPDR ETF (XLE) retreated by 0.5%.

Uranium Energy (UEC) stock was down more than 4% before the opening bell after the company reported a wider fiscal Q3 net loss.

Commodities

Front-month US West Texas Intermediate crude oil retreated by 1.9% to $89.57 per barrel on the New York Mercantile Exchange. Natural gas was up 0.8% to $3.17 per 1 million British Thermal Units. The United States Oil Fund (USO) lost 2%, while the United States Natural Gas Fund (UNG) was 1.1% higher.

Gold futures for July advanced by 0.1% to $4,365.80 an ounce on the Comex. Silver futures fell by 0.2% to $68.48 an ounce. SPDR Gold Shares (GLD) was up by 0.3%, and the iShares Silver Trust (SLV) increased by 0.7%.

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Commodities

Federal Judge Reportedly Rejects IRS Changes to Wind, Solar Tax Subsidy Rules

A federal judge struck down a Trump administration policy that made it more difficult for wind and solar projects to qualify for federal tax incentives, according to multiple media reports on Monday.US District Judge Colleen Kollar-Kotelly ruled Saturday that the Internal Revenue Service failed to adequately explain why it changed a long-standing standard for determining when a project is considered under construction.Judge Kollar-Kotelly reportedly vacated IRS Notice 2025-42 in a Saturday order because it was "arbitrary and capricious," and violated the Administrative Procedures Act.The decision adds to a series of legal challenges facing President Donald Trump's efforts to slow renewable energy development across the US.To remain eligible for a 30% tax credit and additional bonus incentives, developers must either begin construction by July 4 or place projects into service before the end of 2027.For about 10 years, developers could lock in tax-credit eligibility for four years by either maintaining meaningful construction activity or spending at least 5% of a project's total cost before incentives expired.Last August, the IRS narrowed that flexibility by removing the 5% spending option for most projects while keeping it available only for smaller developments, the reports said.Judge Kollar-Kotelly sent the policy back to the IRS for further review after vacating the agency's guidance, according to the reports.The Oregon Environmental Council, the Natural Resources Defense Council, Public Citizen, the City of San Francisco, and the clean-energy consulting firm Woven Energy brought a lawsuit challenging the changes implemented by the IRS last year.Arguing that the revised policy would discourage project development, the plaintiffs said the changes could also lead to higher electricity costs for consumers.IRS did not immediately respond to' request for comment.

Commodities

US Oil Update: Crude Settles Higher After Iran, Israel Signal Pause in Hostilities

Crude oil futures edged higher in after-hours trading on Monday, after a rally in the earlier session, as markets weighed signs of a pause in hostilities between Iran and Israel against lingering concerns that tensions in the Middle East could still threaten global energy supplies.Front-month West Texas Intermediate crude futures were up 0.82% to $91.28 per barrel, while Brent futures were up 1.19% to $94.20/bbl.Soojin Kim, research analyst at MUFG, said the Middle East conflict continues to disrupt energy flows via the Strait of Hormuz, while tensions involving Lebanon and Hezbollah remain a major obstacle to a broader settlement.Crude prices rallied earlier in the session amid concerns that an escalation between Iran and Israel could disrupt oil flows from the Middle East. However, gains moderated after officials from both countries signaled that attacks had ceased.On Monday, Iran's central military command, Khatam al-Anbiya, said that Tehran had ceased strikes against Israel, but warned it would resume hostilities if Jerusalem continues attacks on Lebanon.Prime Minister Benjamin Netanyahu also said Israel has halted strikes for now, but said its fight against Iran and Hezbollah is not over.On Sunday, Iran fired missiles towards Israeli territory, calling them retaliation for Israeli attacks on strongholds of the Iranian-backed Hezbollah near Beirut.Israel, in response, hit a petrochemical plant in southwest Iran that it said was used to produce ballistic missiles. Iran's Islamic Revolutionary Guards said it had retaliated with a strike aimed at a similar Israeli plant in the port city of Haifa.Erik Meyersson, chief strategist at SEB Research, said this is the most significant escalation since the April ceasefire as the conflict passes its 100-day mark today.Meanwhile, President Trump said in a Truth Social post that both countries are seeking to agree to an immediate ceasefire.The Middle East conflict and closure of the Strait of Hormuz are raising concerns that the world will need to tap crude inventories further, after the International Energy Agency said global oil inventories could hit critical levels ahead of the peak summer demand period.Kpler strategists said US crude oil exports surged to a record 5.6 million barrels per day in May, fueled by Strategic Petroleum Reserve releases and elevated Gulf of Mexico output.Saxo Bank analysts said the near-closure of the Strait of Hormuz continues to tighten global energy markets, with several oil majors warning that the window before physical shortages emerge may be measured in weeks rather than months.On the supply side, OPEC+ agreed to increase targets by 188,000 b/d from July, according to an OPEC statement, marking the fourth oil output quota hike approved since the outbreak of the conflict.

Commodities

Market Chatter: Permian Operators Shut Wells as Waha Gas Prices Stay Below Zero

Persistently weak gas prices in the Permian Basin are forcing some producers to curb output even as stronger crude prices encourage additional oil drilling, Bloomberg reported Monday.Producers, including Permian Resources (PR) and Devon Energy (DVN), have shut in wells with elevated gas-to-oil ratios after prices at the Waha Hub remained below zero for 124 straight days.Describing the move as an obvious economic decision, Permian Resources Co-Chief Executive Officer James Walter said the company curtailed gas-heavy production that was generating losses.While gas producers struggle with negative pricing, crude output across the Permian continues to climb as operators respond to oil prices that remain roughly 50% above levels seen before the Iran conflict.Flooding the market with associated gas from oil wells, rising crude-focused activity has overwhelmed existing pipeline infrastructure across West Texas and southeastern New Mexico.According to Targa Resources (TRGP) President Jennifer Kneale, producers are currently shutting in between 200 million and 400 million cubic feet of gas per day, compared with basin-wide dry gas production of about 23 Bcf/d.Middle East-related supply disruptions have encouraged additional oil-weighted drilling, which is adding further pressure to already constrained gas takeaway capacity, Rystad Energy Vice President Matt Bernstein said.Despite stronger crude prices, some operators have refrained from increasing production because losses tied to associated gas can offset gains from oil sales, Bernstein added.Instead of curtailing output, privately held Elevation Resources has opted to flare excess gas, allowing the company to free up infrastructure capacity and continue producing more crude oil, according to the report.Highlighting the pressure facing gas-focused operators, Elevation Resources Chief Executive Officer Steve Pruett said, "We're losing money hand over fist on gas," adding that natural gas accounts for roughly half of the company's production.Recent production curtailments have started to tighten the market, helping lift natural gas prices at the Waha Hub, according to the report.Recovering from a record low of negative $9.60 per million British thermal units on April 24, Waha prices improved to negative $0.33/MMBtu on Thursday, their highest level since February.Later this year, new Permian gas pipeline projects are expected to ease transportation constraints, allowing producers to move more gas to demand centers and improving in-basin pricing, the report said.Despite those expected improvements, Kinetik Holdings (KNTK) raised its full-year gas curtailment outlook and said higher oil prices continue to encourage crude-focused operators to expand activity while gas-focused producers face a much more challenging market environment."It's a tale of two cities: crude folks that are doing cartwheels and backflips," Kinetik Holdings (KNTK) Chief Executive Officer Jamie Welch said, while "those that are literally localized, gas-centric sellers are literally crying poverty."(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$DVN$KNTK$PR$TRGP