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Exchange-Traded Funds, Equity Futures Mixed Pre-Bell Wednesday Ahead of US-China Meeting

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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 0.3% higher in Wednesday's premarket activity as markets traded mixed ahead of a meeting between US President Donald Trump and Chinese leader Xi Jinping.

US stock futures were also mixed, with S&P 500 Index futures down 0.03%, Dow Jones Industrial Average futures slipping 0.5%, and Nasdaq futures gaining 0.3% before the start of regular trading.

The US Producer Price Index rose by 1.4% in April following a 0.7% gain in March, well above the 0.5% gain expected in a survey compiled by Bloomberg as of 7:35 am ET.

The weekly petroleum stocks data will be released at 10:30 am ET.

Mortgage applications rose by 1.7% in the week ended May 8 after a 4.4% fall in the previous week, with the home purchase applications driving the increase despite a small uptick in mortgage rates, according to Mortgage Bankers Association data released Wednesday.

In premarket activity, bitcoin was down by 0.3%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.3% lower, Ether ETF (EETH) advanced 0.9%, and Bitcoin & Ether Market Cap Weight ETF (BETH) gained 0.4%.

Power Play:

Industrial

The State Street Industrial Select Sector SPDR ETF (XLI) retreated by 0.2%, while the Vanguard Industrials Index Fund (VIS) gained 0.7% and the iShares US Industrials ETF (IYJ) was down 0.1%.

Red Cat (RCAT) stock was down more than 13% before the opening bell after the company said it priced an underwritten public offering of 23.9 million shares at $9.40 apiece.

Winners and Losers:

Consumer

The State Street Consumer Staples Select Sector SPDR ETF (XLP) was down 0.2% and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) was 0.4% lower. The iShares US Consumer Staples ETF (IYK) retreated by 0.3%. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) gained 0.1%. The VanEck Retail ETF (RTH) was inactive, while the State Street SPDR S&P Retail ETF (XRT) declined by 0.3%.

Birkenstock (BIRK) shares were down more than 5% pre-bell after the company reported lower-than-expected fiscal Q2 adjusted earnings and revenue.

Financial

The State Street Financial Select Sector SPDR ETF (XLF) declined by 0.5%. Direxion Daily Financial Bull 3X Shares (FAS) was down 1.5%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 1.6% higher.

Sumitomo Mitsui Financial Group (SMFG) shares were up more than 2% pre-bell after the company reported higher fiscal 2026 earnings and ordinary income.

Technology

The State Street Technology Select Sector SPDR ETF (XLK) advanced by 1.4%, and the iShares US Technology ETF (IYW) was 1.3% higher, while the iShares Expanded Tech Sector ETF (IGM) was up 0.8%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) increased by 1.5%, while the iShares Semiconductor ETF (SOXX) rose by 2%.

Nvidia (NVDA) shares were up more than 2% in premarket activity after reports that Nvidia Chief Executive Jensen Huang is set to accompany US President Donald Trump on his visit to Beijing, a last-minute addition that has raised expectations of progress in stalled talks over Nvidia's H200 AI chip sales to China.

Energy

The iShares US Energy ETF (IYE) was down 1%, while the State Street Energy Select Sector SPDR ETF (XLE) retreated by 0.3%.

Fluence Energy (FLNC) stock was down more than 2% before the opening bell after the company said it has priced an underwritten public offering of a total of 20 million of its Class A common shares on behalf of certain shareholders at $21 apiece.

Health Care

The State Street Health Care Select Sector SPDR ETF (XLV) retreated by 0.5%, the Vanguard Health Care Index Fund (VHT) was down 0.1%, while the iShares US Healthcare ETF (IYH) was inactive. The iShares Biotechnology ETF (IBB) was 0.6% lower.

Novo Nordisk (NVO) shares were up 0.4% pre-bell. The drugmaker presented new analyses from its phase 3 OASIS 4 trial showing that adults treated with Wegovy pill achieved substantial weight loss and improved physical function. The company also said it is pausing further manufacturing development at its Odense, Denmark, site.

Commodities

Front-month US West Texas Intermediate crude oil retreated by 0.4% to $101.81 per barrel on the New York Mercantile Exchange. Natural gas was down 0.6% at $2.83 per 1 million British Thermal Units. The United States Oil Fund (USO) decreased by 0.4%, while The United States Natural Gas Fund (UNG) was 0.8% higher.

Gold futures for May gained by 0.4% to reach $4,705.90 an ounce on the Comex. Silver futures rose by 2.6% to $87.85 an ounce. SPDR Gold Shares (GLD) was 0.7% lower, and the iShares Silver Trust (SLV) fell by 0.7%.

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Commodities

Market Chatter: US LNG Cargoes Sail to China for 1st Direct Deliveries Since February 2025

Three US liquefied natural gas cargoes are sailing to China, marking the first direct shipments between the countries in more than a year, according to a Reuters analysis on Tuesday, citing LSEG data.LSEG shipping data showed the vessels departed LNG export terminals in Louisiana last week and are scheduled to reach Tianjin between June 15 and June 20.The planned deliveries come as US President Donald Trump prepares to travel to Beijing this week for talks with Chinese President Xi Jinping.Since Trump returned to office in January 2025, no LNG vessel has shipped directly from the US to China because trade tensions pushed buyers to redirect cargoes elsewhere, the analysis said.Chinese importers holding contracts with US LNG producers sold many shipments to other countries over the past year as stronger global prices created profitable resale opportunities.The analysis cited EBW Analytics, which said China has relied more heavily on pipeline gas supplies from Russia and Central Asia rather than increasing purchases of US LNG.Columbia University researcher Erica Downs said lower inventories could encourage China to buy more LNG from the US, although cheaper pipeline imports and domestic gas production remain more attractive options."Beijing likely views the United States as an unreliable trade partner," Downs said.Umm Al Hanaya departed Cheniere Energy's (LNG) Sabine Pass export terminal on May 5, while Al Sailiya and Id'Asah left Venture Global's Plaquemines facility on May 8, the analysis added, citing LSEG data.If the vessels reach China, they would mark the first direct US LNG shipments to arrive since February 2025, when four cargoes reached Chinese ports before President Donald Trump began his second term.The US Department of Energy said two LNG vessels delivered small portions of US cargoes to China in 2025 and 2026 after unloading most of their shipments in Bangladesh.US DOE added 64 LNG vessels delivered cargoes to China from the US in 2024, compared with 52 in 2023, 30 in 2022 and a record 131 shipments in 2021, according to the analysis.(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.)

$LNG
Commodities

US Natural Gas Update: Futures Slide as Oversupply Concerns Return

US natural gas futures pared steeper losses in after-hours trading on Tuesday but still closed lower as traders refocused on oversupply concerns.Both the front-month Henry Hub contract and the continuous contract fell 2.61% to $2.834 per million British thermal units.Tuesday's price drop reversed part of Monday's more than 6% surge that had pushed prices to their highest levels since March. Monday's rally was fueled by forecasts for stronger cooling demand and expectations of tighter balances following the restart of a Texas LNG plant as well as continued support from the conflict in the Middle East. But analysts said the market's attention has shifted back toward ample supply and weakening near-term demand."Geopolitics has kept global energy markets jumpy and helped support gas earlier in the week, but follow-through has been elusive with national demand still choppy and supply holding near seasonal highs," Gelber & Associates said in a market note.It added that with LNG feedgas demand easing due to seasonal maintenance and domestic production remaining resilient, "the path of least resistance has shifted lower again as traders look past headline risk and back toward storage and the shoulder season reset."US natural gas demand fell from about 105 billion cubic feet per day earlier in the week to 98.7 Bcf/d on Tuesday, according to NRG Energy.Both heating and cooling demand may pick up in the near term. NatGasWeather said moderate-to-low demand is expected over the next five to six days as cooler-than-normal systems move across the Midwest and Northeast, bringing temperatures into the 30s and 40s Fahrenheit. While the West and Southwest are expected to see highs in the 90s and above 100 degrees Fahrenheit.Meanwhile, production remained steady. NRG Energy said dry gas output averaged roughly 107.2 Bcf/d over the past week with only modest fluctuations. The US Energy Information Administration on Tuesday raised its 2026 production forecast to 110.61 Bcf/d from 109.60 Bcf/d estimated in April.LNG feedgas flows averaged around 17 Bcf/d, but export demand is expected to soften in the coming weeks due to maintenance at Cameron LNG and lower flows to Corpus Christi and Freeport. Freeport LNG has also announced unplanned maintenance for May.Traders are also monitoring the gradual ramp-up of Golden Pass LNG and the expected startup of Corpus Christi Stage III Train 6 following regulatory approval.

Commodities

US Crude Inventories Fall for 4th Straight Week, API Says

Data from the American Petroleum Institute revealed Tuesday that US crude oil inventories decreased by 2.19 million barrels in the week ended May 8, following an 8.1-mmbbl draw the previous week and a Bloomberg-compiled survey estimate of a 1.65-mmbbl decline.The oil market now awaits the US Energy Information Administration's petroleum inventory report, scheduled for release on Wednesday.