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Exchange-Traded Funds, Equity Futures Lower Pre-Bell Thursday Amid Stalled US-Iran Talks

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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 Thursday's premarket activity as talks between the US and Iran stalled amid a continued blockage of the Strait of Hormuz.

US stock futures were also lower, with S&P 500 Index futures down 0.4%, Dow Jones Industrial Average futures slipping 0.6%, and Nasdaq futures retreating 0.4% before the start of regular trading.

US initial jobless claims totaled 214,000, compared with expectations of 210,000 and a prior reading of 208,000.

The Chicago Federal Reserve Bank's monthly National Activity Index fell to a reading of minus 0.20 in March from 0.03 in February, compared with expectations for a smaller decrease to minus 0.13 in survey of analysts compiled by Bloomberg as of 7:35 am ET.

S&P Global flash estimates of manufacturing and services conditions for April will be released at 9:45 am ET, followed by weekly natural gas stocks at 10:30 am ET.

The Kansas City Fed's manufacturing reading for April will be released at 11 am ET.

In premarket activity, bitcoin was down by 1.6%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 1.7% lower, Ether ETF (EETH) retreated by 3.3%, and Bitcoin & Ether Market Cap Weight ETF (BETH) declined by 0.02%.

Power Play:

Energy

The iShares US Energy ETF (IYE) gained 0.03%, while the State Street Energy Select Sector SPDR ETF (XLE) was up by 0.4%.

Helix Energy Solutions (HLX) stock was up more than 8% before the opening bell after the company agreed to merge with Hornbeck Offshore Services in an all-stock deal to form an integrated offshore services company.

Winners and Losers:

Health Care

The State Street Health Care Select Sector SPDR ETF (XLV) retreated by 0.04%, the Vanguard Health Care Index Fund (VHT) was down 0.3%, while the iShares US Healthcare ETF (IYH) was inactive. The iShares Biotechnology ETF (IBB) declined by 1.2%.

Sanofi (SNY) stock was up more than 3% premarket after the company reported higher Q1 adjusted earnings and sales.

Financial

The State Street Financial Select Sector SPDR ETF (XLF) advanced 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) was up 0.4%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 0.1% lower.

KB Financial Group (KB) shares were up more than 2% pre-bell after the company reported higher Q1 earnings and revenue.

Industrial

The State Street Industrial Select Sector SPDR ETF (XLI) advanced 0.04%, while the Vanguard Industrials Index Fund (VIS) gained 0.7% and the iShares US Industrials ETF (IYJ) was down 0.4%.

Union Pacific (UNP) stock was up more than 2% before the opening bell after the company reported Q1 earnings and operating revenue.

Consumer

The State Street Consumer Staples Select Sector SPDR ETF (XLP) was up 0.1% and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) was down 0.3%. The iShares US Consumer Staples ETF (IYK) was inactive. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) lost 0.5%. The VanEck Retail ETF (RTH) and the State Street SPDR S&P Retail ETF (XRT) were inactive.

Tesla (TSLA) shares were down more than 2% pre-bell after the company overnight reported Q1 results, with investors focused on its outsized capital expenditure outlook.

Technology

The State Street Technology Select Sector SPDR ETF (XLK) advanced by 0.4%, and the iShares US Technology ETF (IYW) was flat, while the iShares Expanded Tech Sector ETF (IGM) was down 0.9%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) was 0.04% higher, while the iShares Semiconductor ETF (SOXX) rose by 0.9%.

Intel (INTC) shares were up more than 1% in Thursday's premarket activity after Tesla (TSLA) Chief Executive Elon Musk said he intends to use Intel's upcoming 14A process to make chips at its Terafab advanced artificial intelligence project in Austin, Texas.

Commodities

Front-month US West Texas Intermediate crude oil advanced by 0.2% to $93.17 per barrel on the New York Mercantile Exchange. Natural gas gained by 0.1% to reach $2.73 per 1 million British Thermal Units. The United States Oil Fund (USO) increased by 0.1%, while the United States Natural Gas Fund (UNG) was 0.4% lower.

Gold futures for May were down by 0.4% at $4,734.40 an ounce on the Comex. Silver futures retreated by 3.1% to $76.11 an ounce. SPDR Gold Shares (GLD) was 0.3% lower, and the iShares Silver Trust (SLV) fell by 1.8%.

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Commodities

Kinder Morgan Q1 Gas Transport Volumes Rise; Oil, Refined Product Volumes Decline

Kinder Morgan (KMI) reported Q1 earnings Wednesday, showing total transported natural gas volumes rose to 49,475 billion British thermal units per day over the year, from 45,978 billion Btu/d a year earlier.Total oil segment delivery volumes declined to 1.97 million barrels per day in Q1 2026, compared with 2.05 million b/d a year earlier.Within the oil segment, transported volumes of crude and condensate fell to 420,000 b/d in the quarter, down from 476,000 b/d a year earlier.Total refined product volumes edged lower, with transported volumes at 1.5 million b/d in Q1 2026, compared with 1.6 million b/d a year earlier.In the Products Pipelines segment, transported gasoline volumes dropped to 912,000 b/d from 933,000 b/d in Q1 2025, and jet fuel volumes also fell to 293,000 b/d from 302,000 b/d a year ago.In contrast, diesel fuel volumes increased to 340,000 b/d from 336,000 b/d in the year-ago period."Our Natural Gas Pipelines segment drove the bulk of that outperformance, benefiting from winter storm Fern and extended cold weather," Chief Executive Officer Kim Dang said.Executive Chairman Richard D. Kinder said geopolitical uncertainty surrounding the Middle East conflict remained elevated."The geopolitical landscape became even more turbulent this quarter, with conflict in the Middle East joining the ongoing war in Ukraine as a source of significant commodity price volatility," Kinder said, adding that the company was "largely insulated from that volatility.""Longer-term, these global conflicts highlight the benefits of securing liquefied natural gas supplies from the United States, driving incremental demand for the services we provide those shippers," he said, noting that domestic natural gas demand growth projections, particularly in the power sector, continue to be robust.On April 20, KMI and Phillips 66 (PSX) closed a second open season for the proposed Western Gateway Pipeline system with sufficient customer commitments to advance the project, subject to agreements and respective board approvals.The refined products pipeline aims to connect Midwest and Gulf Coast refinery supplies to Phoenix, Arizona and California markets with connectivity to Las Vegas, Nevada, via Kinder Morgan's CALNEV Pipeline. Completion is targeted for mid-2029.

$KMI$PSX
Commodities

US Natural Gas Update: Futures Prices Maintain Two-week High

US natural gas futures pared earlier gains in after-hours trade on Wednesday but remained at a two-week high, as heightened geopolitical tensions surrounding conflicts in the Middle East lent support to prices.Both the front-month Henry Hub contract and the continuous benchmark edged up 0.63% to $2.714 per million British thermal units.Prices had earlier traded as high as $2.76/MMBtu during the session.Market sentiment was underpinned by expectations that the Strait of Hormuz could remain closed for an extended period, a development that would likely sustain or boost demand for US LNG exports.However, gains were capped by a weak near-term domestic demand outlook. Forecasts for warmer-than-average temperatures are expected to reduce heating demand in the coming days. Data cited by Barchart from the Commodity Weather Group indicate above-normal temperatures will likely persist across the eastern half of the US through Apr. 26, followed by cooler weather into May.Gelber & Associates said forward weather patterns may provide some support, noting that a cooler bias into early May could modestly lift heating demand. Still, the firm added that the lack of meaningful cooling demand continues to limit overall consumption.Storage expectations also weighed on the market. Analysts anticipate a larger-than-normal inventory build in the US Energy Information Administration's weekly report due Thursday. Market estimates call for an increase of 94-97 billion cubic feet for the week ended Apr. 17, well above the five-year average build of 64 Bcf for the period.On the supply side, dry gas production in the Lower 48 states was estimated at 110.3 Bcf/d, up 3.3% from a year earlier, according to data from BNEF. Demand across the region was pegged at 68.4 Bcf/d, a 2.2% increase year over year.Flows to US LNG export terminals remained steady, with net feedgas deliveries estimated at 20.1 Bcf/d, up 1.6% from the previous week.

Commodities

Amendments Breathe Life into E15 Nationwide, Year-Round Sales

Lawmakers introduced legislation on Wednesday that would permit the sale of E15 year-round nationwide.The proposal also requires the Environmental Protection Agency to finalize pending rulemaking, recognizing that E15 is compatible with existing infrastructure and equipment.Additionally, the proposed amendment to the House Farm Bill, introduced by the lawmakers that make up the E15 Rural Domestic Energy Council, reforms the Renewable Fuel Standard refinery exemption process by clarifying who qualifies as a "small" refiner beginning in 2028, the Iowa Renewable Fuels Association said in a statement.Refiners meeting the new standard would receive an automatic 75% reduction in their RFS obligations.Larger refiners could petition for RFS exemptions on an emergency basis. Going forward, RFS exemptions would not be reallocated, IRFA said."IRFA is thrilled to finally see this compromise legislation introduced," said IRFA Executive Director Monte Shaw. Our message is simple: get this to the President's desk immediately so that he can sign it into law."Geoff Cooper, President of the Renewable Fuels Association, said the amendment strikes the right balance for the many stakeholders who came to the table and engaged in good faith with the House council over the past several months."We believe it is broadly supportable by agriculture, oil refining, biofuels, and fuel retail interests," Cooper said.In January, lawmakers removed year-round E15 from a funding bill and instead formed the E15 Rural Domestic Energy Council to study the issue and introduce legislation in February.The Fueling American Jobs Coalition, a coalition of union workers and independent American oil refiners, opposed the measures."It has been made abundantly clear that the ethanol industry has no interest in a year-round E-15 compromise that would rein in the volatile regulatory costs of the Renewable Fuel Standard," FAJC leadership stated in a press release.