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Exchange-Traded Funds Higher, Equity Futures Mixed Pre-Bell Amid Corporate Earnings, Hormuz Reopening Hopes

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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) was 0.1% higher in Wednesday's premarket activity amid continued corporate earnings and optimism around a possible opening of the Strait of Hormuz.

US stock futures were mixed, with S&P 500 Index futures up 0.3%, Dow Jones Industrial Average futures advancing 0.3%, and Nasdaq futures slipping 0.02% before the start of regular trading.

Mortgage applications fell by 2.9% in the week ended July 31 as 30-year fixed mortgage rates rose to their highest level in more than a year after the Federal Open Market Committee's meeting last week, according to Mortgage Bankers Association data released Wednesday.

S&P Global's services PMI report for July will be released at 9:45 am ET, followed by ISM's services reading for July at 10 am ET.

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

Federal Reserve Governor Lisa Cook is due to speak on Wednesday.

In premarket activity, bitcoin was down by 0.3%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.1% lower, Ether ETF (EETH) retreated 0.2%, and Bitcoin & Ether Market Cap Weight ETF (BETH) decreased 0.01%.

Power Play:

Industrial

The State Street Industrial Select Sector SPDR ETF (XLI) advanced 0.3%, the Vanguard Industrials Index Fund (VIS) was up 1.1%, and the iShares US Industrials ETF (IYJ) was inactive.

SpaceX (SPCX) shares were 11% lower pre-bell after the rocket and satellite company reported quarterly results for the first time since going public.

Winners and Losers:

Technology

The State Street Technology Select Sector SPDR ETF (XLK) retreated 0.3%, the iShares US Technology ETF (IYW) was 0.2% higher, and the iShares Expanded Tech Sector ETF (IGM) was up 0.6%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) was 1.1% lower, while the iShares Semiconductor ETF (SOXX) fell by 1.9%.

GlobalFoundries (GFS) shares were down more than 5% in premarket activity even after the company reported higher Q2 adjusted earnings and revenue.

Health Care

The State Street Health Care Select Sector SPDR ETF (XLV) advanced 1%, the Vanguard Health Care Index Fund (VHT) was up 0.7%, and the iShares US Healthcare ETF (IYH) gained 0.7%. The iShares Biotechnology ETF (IBB) was also 0.7% higher.

Eli Lilly (LLY) stock was up more than 4% premarket after the company reported higher Q2 non-GAAP earnings and revenue.

Financial

The State Street Financial Select Sector SPDR ETF (XLF) advanced 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) was up 0.8%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 0.6% lower.

HSBC (HSBC) shares traded down 4% in early-hours activity after the company said late Tuesday it launched cash tender offers for four series of senior unsecured notes with an aggregate purchase price of up to $5 billion.

Consumer

The State Street Consumer Staples Select Sector SPDR ETF (XLP) was up 0.3%, the Vanguard Consumer Staples Index Fund ETF Shares (VDC) gained 1.1%, and the iShares US Consumer Staples ETF (IYK) was down 0.8%. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) advanced 0.6%. The VanEck Retail ETF (RTH) was inactive, while the State Street SPDR S&P Retail ETF (XRT) was flat.

Honda Motor (HMC) shares were up more than 4% pre-bell after the company reported higher fiscal Q1 earnings and revenue.

Energy

The iShares US Energy ETF (IYE) was down 0.035, while the State Street Energy Select Sector SPDR ETF (XLE) was up by 0.2%.

Phillips 66 (PSX) stock was up more than 1% before market open after the company reported higher Q2 adjusted earnings.

Commodities

Front-month US West Texas Intermediate crude oil gained by 0.5% to reach $76.12 per barrel on the New York Mercantile Exchange. Natural gas was up 0.4% at $2.69 per 1 million British Thermal Units. The United States Oil Fund (USO) increased by 0.5%, while the United States Natural Gas Fund (UNG) was 0.2% higher.

Gold futures for November advanced by 2.4% to $4,250.40 an ounce on the Comex. Silver futures rose by 3.4% to $62.27 an ounce. SPDR Gold Shares (GLD) was up by 3%, and the iShares Silver Trust (SLV) was 4.4% higher.

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US Natural Gas Update: Prices fall on Milder Weather Forecasts, Ample Supply

US natural gas futures traded near the bottom of the session range in late Tuesday trading as a milder weather outlook and expectations of even stronger supply outweighed support from near-term cooling demand.The front-month Henry Hub contract and the continuous contract both fell 3.31% to $2.689 per million British thermal units.According to Energy Buyers Guide, the latest forecast revisions turned milder after an expected period of intense heat this weekend and into early next week, which is still projected to support elevated cooling demand. However, forecasts for the Midwest and East moderated considerably beyond that period, reducing expectations for sustained heat through the middle of August and weighing most heavily on nearby futures contracts.Additional pressure came from supply-side developments. Barchart said Energy Transfer announced that the Hugh Brinson Pipeline is expected to operate at its full transportation capacity of 1.5 Bcf/d by Sept. 1, allowing more natural gas to move from the Permian Basin to the Henry Hub pricing point in Erath, Louisiana. The expanded capacity is expected to increase domestic gas supplies.The accelerated startup of the Hugh Brinson Pipeline marks a significant shift for West Texas natural gas markets, Natural Gas Intelligence said. The additional takeaway capacity could help relieve trapped Permian gas supplies that have kept Waha benchmark prices below zero for much of this year.Gelber & Associates said US dry gas production has eased to a still strong 110.5 Bcf/d, while Canadian imports have held near a two-week low of 4.8 Bcf/d.Demand rose by 2 Bcf/d on hot weather in the middle of the country to 80.2 Bcf/d, Barchart said, citing BNEF data. Celsius Energy said power demand was pegged around 44.8 Bcf/d on Aug. 2.LNG feedgas demand has remained steady at around 18.4 Bcf/d, below capacity due to maintenance work at the Freeport LNG terminal expected to be completed around the end of this month.