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Exchange-Traded Funds, Equity Futures Rise Pre-Bell Friday Amid US-Iran Deal Hopes

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The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.1% and the actively traded Invesco QQQ Trust (QQQ) was 0.1% higher in Friday's premarket activity amid hopes of a possible US-Iran shipping and ceasefire agreement.

US stock futures were also higher, with S&P 500 Index futures up 0.1%, Dow Jones Industrial Average futures advancing 0.3%, and Nasdaq futures gaining 0.1% before the start of regular trading.

The US advance international trade in goods deficit narrowed to $82.40 billion in April from $85.27 billion in March, according to data released by the US Census Bureau. In the same report, wholesale inventories rose by 0.5% in April after a 1.5% increase in March. Analysts polled by Bloomberg expected wholesale inventories to increase by 0.8%.

Chicago PMI data for May will be released at 9:45 am ET.

Federal Reserve Vice Chair for Supervision Michelle Bowman is slated to speak on Friday.

In premarket activity, bitcoin was down by 1.8%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 1.6% higher, Ether ETF (EETH) advanced 2.6%, and Bitcoin & Ether Market Cap Weight ETF (BETH) gained 0.9%.

Power Play:

Technology

The State Street Technology Select Sector SPDR ETF (XLK) advanced 1.1%, and the iShares US Technology ETF (IYW) was 1.4% 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) gained 0.9%, while the iShares Semiconductor ETF (SOXX) rose by 0.6%.

Dell (DELL) shares were 34% higher in premarket activity after the company reported fiscal Q1 financial results that topped analyst estimates and issued higher-than-expected guidance for fiscal Q2 and fiscal 2027.

Winners and Losers:

Consumer

The State Street Consumer Staples Select Sector SPDR ETF (XLP) was down 0.02%, and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) was flat. The iShares US Consumer Staples ETF (IYK) was inactive. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) lost 0.2%. The VanEck Retail ETF (RTH) gained 0.1%, while the State Street SPDR S&P Retail ETF (XRT) declined by 1.6%.

Chagee (CHA) shares were up more than 12% pre-bell after the company reported higher Q1 revenue.

Health Care

The State Street Health Care Select Sector SPDR ETF (XLV) retreated by 0.1%, the Vanguard Health Care Index Fund (VHT) advanced by 0.02%, while the iShares US Healthcare ETF (IYH) was flat. The iShares Biotechnology ETF (IBB) gained by 0.3%.

Agios Pharmaceuticals (AGIO) stock was down more than 5% premarket after the company said it will discontinue development of tebapivat for lower-risk myelodysplastic syndromes following a phase 2b study that failed to meet the company's threshold for further advancement.

Industrial

The State Street Industrial Select Sector SPDR ETF (XLI) advanced by 0.1%, while the Vanguard Industrials Index Fund (VIS) rose 0.6% and the iShares US Industrials ETF (IYJ) was 0.2% higher.

Firefly Aerospace (FLY) shares were more than 5% lower before market open after the company said late Thursday it priced a public offering of 4 million shares, alongside 8 million shares being offered by certain selling stockholders, at $48 per share.

Energy

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

Solv Energy (MWH) stock was down more than 1% before the opening bell after the company priced an upsized public offering of 15 million Class A common shares at $36 apiece.

Financial

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

Blackstone (BX) shares were edging 0.2% higher pre-bell after closing the previous session with a 106% decline. Bloomberg reported that the company is in talks to sell its 45% stake in Leica Camera to Asian investment firm HSG.

Commodities

Front-month US West Texas Intermediate crude oil retreated by 1.3% to $87.76 per barrel on the New York Mercantile Exchange. Natural gas was up 5% at $3.04 per 1 million British Thermal Units. The United States Oil Fund (USO) fell by 2%, while the United States Natural Gas Fund (UNG) was 1.8% higher.

Gold futures for July advanced by 0.6% to $4,561.10 an ounce on the Comex. Silver futures declined by 0.2% to $75.78 an ounce. SPDR Gold Shares (GLD) was up by 0.6%, and the iShares Silver Trust (SLV) fell by 0.2%.

Related Articles

Commodities

Oil Stockpiles Nearing 'Unheard of' Levels, Prices to Rise Further, Exxon Mobil's Chapman Says

Oil inventories are nearing "unheard of" levels that will lead to increased prices in the next few weeks, Neil Chapman, senior vice president of Exxon Mobil (XOM), said Thursday at the Bernstein Strategic Decisions Conference in New York."I mean, really, really low levels," he said, according to a transcript of the event. "You can debate whether that's going to hit those really low levels in two weeks or three weeks. Once you get to that point, then you'll see price shoot up."Dated Brent futures will rise to $150 or $160 per barrel when inventories hit their lowest, Chapman said. That will ultimately lead to demand destruction."Prices go so high, becomes unaffordable, and that's what happens," he said.Rising crude futures naturally inflate the price consumers pay at the pump, but the cost of everything from fertilizers to plastics to food to will increase as oil prices climb, Chapman said."People think of crude oil as the source of gasoline. Well, of course it is," he said. "And people say, when crude oil goes to $150, gasoline price will be $9 in California, and that will be a serious issue. It's much, much more than that."He added that crude is an important feedstock for many other products."Crude oil goes into virtually everything around us. Fertilizers comes from crude oil and gas. Food prices, they will reflect the absence or the lack. Plastics, everything you see in the world is plastics. Delivery. Amazon. Still a lot of trucks around the country are running on diesel. So the crude oil price impacts so many parts of society," he said.

$XOM
Commodities

US Natural Gas Update: Prices Climb Nearly 7% on Small Storage Build, Hotter Forecasts

US natural gas futures extended gains in after-hours trading on Thursday after government data showed a smaller-than-expected storage build and forecasts pointed to higher temperatures ahead.The front-month Henry Hub contract and the continuous contract both rose 6.72% to $3.303 per million British thermal units.The US Energy Information Administration said working gas in storage increased by 92 billion cubic feet for the week ended May 22, bringing inventories to 2,483 Bcf. The build came in slightly below analyst expectations of 93-98 Bcf and under the 104 Bcf injection seen in the same week a year earlier.Stocks now stand 6.2% above the five-year average, narrowing from a 149 Bcf surplus the prior week to 144 Bcf. On a year-over-year basis, inventories are up about 0.9%.Weather models added further support, with updated forecasts turning hotter. Commodity Weather Group data cited by Barchart indicate above-normal temperatures are expected across the West and Midwest from Jun. 2-11, raising expectations for higher power sector demand driven by air-conditioning load.Electricity demand trends also remained firm. The Edison Electric Institute reported US electricity output rose 5.2% year over year to 81,890 GWh for the week ended May 23. Over the past 52 weeks, output increased 2.0% year over year to 4.34 million GWh.Barchart, citing BNEF data, reported US dry gas production at 110.4 Bcf/d on Thursday, up 0.6 Bcf/d from the prior day and 2.6% higher year over year.It said lower-48 demand was pegged at 70.2 Bcf/d, up 0.1 Bcf/d day over day and 2.1% higher year over year. Power burn slipped slightly to 24.9 Bcf, down 0.4 Bcf from the previous day but up 2.3 Bcf from a year earlier, according to Celsius Energy.On the export side, estimated LNG feedgas flows to export terminals were 18.5 Bcf/d, down 0.1 Bcf/d day over day but up 2.2% week over week amid ongoing maintenance. EIA data showed LNG vessel loadings totaled 121 Bcf for the week ended Wednesday, down 7 Bcf from the prior week, with 32 vessels departing US ports, two fewer than the previous week.Gelber & Associates said the market remains focused on whether tightening LNG demand can offset looser near-term storage fundamentals. LNG feedgas continues to provide structural support, with flows near recent highs and commissioning activity at Golden Pass gradually ramping higher. Mexican pipeline exports also remain elevated as seasonal cooling demand builds.

Commodities

Market Chatter: Alberta Coast Pipeline Would Need Over $72 Billion in Investment, Imperial Oil CEO Says

Canada's oil industry will need to attract over CA$100 billion ($72.5 billion) in investment to support Alberta's proposed 1 million-barrel-per-day pipeline to the British Columbia coast, Bloomberg reported on Thursday, citing Imperial Oil Chief Executive John Whelan.Speaking at the Energy Roundtable conference in Calgary, Whelan reportedly said the industry would need to invest in expanding oil production to supply the new pipeline, secure shipping commitments and help fund a federally mandated carbon capture project."The total cost is north of a hundred billion [Canadian] dollars that we will need to attract to this industry," Whelan said. "Now I think we can do that, but that's kind of scale of what we're talking about."Imperial Oil did not immediately respond to a request for comment from.Alberta Premier Danielle Smith has proposed the new West Coast pipeline as part of a broader plan to eventually double the province's oil production.Canadian Prime Minister Mark Carney has said Ottawa would support the project in exchange for measures, including a higher industrial carbon tax and the development of the long-delayed Pathways carbon capture and storage project, aimed at reducing emissions from Canada's oil sands industry.The Alberta government plans to unveil additional details on the project, including the proposed route to the coast, by July and aims to secure federal approval by October.The province's preferred northwestern route is expected to face opposition from Indigenous groups in BC and from BC Premier David Eby. The project could also require the federal government to lift a moratorium on oil tankers along BC's northern coast, a step Smith has reportedly advocated.Construction could begin as early as late next year, according to the Alberta government.Imperial Oil, majority-owned by Exxon Mobil (XOM), is one of Canada's largest oil sands producers, operating the Kearl mine and the Cold Lake in situ oil sands project in Alberta.(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.)

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