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Exchange-Traded Funds Lower, Equity Futures Mixed Pre-Bell Monday Amid Rising Oil Prices

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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) retreated 0.1% in Monday's premarket activity amid higher crude prices tied to the Strait of Hormuz uncertainty.

US stock futures were mixed, with S&P 500 Index futures up 0.04%, Dow Jones Industrial Average futures slipping 0.2%, and Nasdaq futures gaining 0.2% before the start of regular trading.

In premarket activity, bitcoin was down by 0.3%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.2% lower, Ether ETF (EETH) retreated 0.1%, and Bitcoin & Ether Market Cap Weight ETF (BETH) rose 5%.

Power Play:

Health Care

The State Street Health Care Select Sector SPDR ETF (XLV) advanced 0.2%, the Vanguard Health Care Index Fund (VHT) was up 0.3%, while the iShares US Healthcare ETF (IYH) was inactive. The iShares Biotechnology ETF (IBB) was 0.4% higher.

Sionna Therapeutics (SION) shares were down more than 90% after the company said it will not advance SION-719 as an add-on therapy to standard of care Trikafta in cystic fibrosis patients after a phase 2a proof-of-concept failed to meet its key activity endpoint of sweat chloride reduction.

Winners and Losers:

Technology

The State Street Technology Select Sector SPDR ETF (XLK) retreated 0.3%, the iShares US Technology ETF (IYW) was 0.4% lower, and the iShares Expanded Tech Sector ETF (IGM) was down 0.3%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) was up 0.1%, while the iShares Semiconductor ETF (SOXX) declined by 0.1%.

Monday.com (MNDY) stock was more than 10% lower in premarket activity after the company guided for Q3 revenue that trailed analyst estimates.

Energy

The iShares US Energy ETF (IYE) gained 0.03%, while the State Street Energy Select Sector SPDR ETF (XLE) was up by 1.1%.

National Energy Services Reunited (NESR) shares were up over 8% before market open after the company reported higher Q2 adjusted earnings and revenue.

Industrial

The State Street Industrial Select Sector SPDR ETF (XLI) advanced 0.02%, the Vanguard Industrials Index Fund (VIS) retreated 0.01%, and the iShares US Industrials ETF (IYJ) was inactive.

CECO Environmental (CECO) stock was up over 7% before the opening bell after the company reported higher Q2 non-GAAP earnings and net sales.

Consumer

The State Street Consumer Staples Select Sector SPDR ETF (XLP) was down 0.3%, the Vanguard Consumer Staples Index Fund ETF Shares (VDC) was 0.5% lower, and the iShares US Consumer Staples ETF (IYK) was 0.1% higher. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) lost 0.2%. The VanEck Retail ETF (RTH) was inactive, while the State Street SPDR S&P Retail ETF (XRT) was up 0.9%.

GameStop (GME) shares were up more than 2% pre-bell after Bloomberg reported that Chief Executive Ryan Cohen is considering pulling the company's $56 billion bid for eBay (EBAY). eBay shares were 0.4% lower.

Financial

The State Street Financial Select Sector SPDR ETF (XLF) retreated 0.03%. Direxion Daily Financial Bull 3X Shares (FAS) was up 0.1%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 0.1% higher.

Robinhood Markets (HOOD) stock was up 1% in early-hours activity after Bloomberg reported the company will begin rolling out cryptocurrency trading to eligible UK customers this week, allowing them to trade digital assets through its app.

Commodities

Front-month US West Texas Intermediate crude oil advanced by 1.8% to $79.58 per barrel on the New York Mercantile Exchange. Natural gas was 4.5% higher at $2.78 per 1 million British Thermal Units. The United States Oil Fund (USO) increased by 3.3%, while the United States Natural Gas Fund (UNG) was 3.4% higher.

Gold futures for November declined by 0.2% to $4,390.40 an ounce on the Comex. Silver futures gained 1% to reach $64.14 an ounce. SPDR Gold Shares (GLD) was down by 0.3%, and the iShares Silver Trust (SLV) was 0.3% higher.

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Commodities

US Natural Gas Prices Fall for 6th Straight Week Amid Higher Storage, Softer Demand

US natural gas prices ended another week in the red following a higher-than-expected gas injection into storage and milder weather forecasts.In the futures market, the Nymex front-month contract closed the week at $2.67 per million British thermal units on Friday, down from $2.79/MMBtu on July 31.Natural gas spot prices, however, increased $0.04/MMBtu to $2.60/MMBtu on Wednesday, according to the US Energy Information Administration's Weekly Gas Storage Supplement, released on Thursday.This comes amid below-average temperatures across most of Central and Eastern US this week, which sapped demand for gas-fired power burn.Total gas demand for the week dropped by 0.2 billion cubic feet per day, or less than 1%, led by a 0.4 Bcf/d decline in LNG feedgas over the prior week, according to LSEG data.Meanwhile, gas output fell by 0.8 Bcf/d, or 1%, with dry gas output dropping 0.6 Bcf/d, while imports from Canada dropped 3% during the week.US LNG feedgas flows averaged around 17.5 Bcf/d during the first week of August, which is below the Summer peak of 19 Bcf/d in April, according to a report by Natural Gas Intelligence.This was largely due to the Freeport LNG facility in Texas entering into scheduled maintenance on July 10, which is set to last until early August.The net injection into storage for the week ended July 31 was 33 Bcf, up from last week's 28 Bcf, bringing total gas inventories to 3,117 Bcf, according to weekly EIA inventory data.Storage injections were above forecasts, which had expected a net build of 30 Bcf, and were significantly above the prior year's net injection of just 13 Bcf into storage, as well as the five-year average for this period, at 23 Bcf, according to data compiled by Investing.com.Only two regions reported a net injection into storage for the week ended July 31, the East and the Midwest, reporting 24 Bcf and 20 Bcf, resulting in a 5% and 7% surplus to their five-year averages, respectively.Meanwhile, the Pacific and Mountain regions reported withdrawals of 3 Bcf and 1 Bcf, respectively, while South Central and Salt regions saw withdrawals of 6 Bcf and 11 Bcf, respectively.At 3,117 Bcf, total US working gas in storage was 12 Bcf, or less than 1% below the same period last year, but 195 Bcf, or 7% above the five-year average for this period.Weather forecasts turned bearish over the week, with the northern and eastern parts of the country expected to see near-normal temperatures, while the northeastern regions are set to see below-normal temperatures from August 14 through August 20, according to the National Weather Service.This marks a sharp shift from the above-normal temperatures that blanketed the whole of the country in recent weeks, with persistent heatwaves sending temperatures north of 40 degrees in Celcius across certain key regions.According to Pinebrook Energy Advisors, temperature forecasts "are largely unsupportive," aside from a brief heatwave set to last "over the next five days."A total of 31 LNG carriers departed US ports during the week, down four from the prior week, with a total combined capacity of 119 Bcf, down 16 Bcf from last week.The US gas rig count decreased by three from 127 the previous week to 124 in the week ending Aug. 7, according to data from Baker Hughes (BKR) released Friday. That compares with 123 gas rigs in operation in the US a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, decreased by three to 804 from 807 the previous week.In international markets, European TTF gas prices averaged $19.14/MMBtu for the week ended August 05, $1.03/MMBtu below the prior week. Meanwhile, the Japan-Korea Marker averaged $21.23/MMBtu, about $0.37/MMBtu above the prior week.

$BKR
Commodities

US Oil Update: Crude Steadies as Markets Weigh Iran-Oman Talks, Weak US Jobs Data

Crude futures held steady in after-hours trading on Friday as markets weighed prospects for progress in Iran-Oman talks against concerns over slowing economic growth after weaker-than-expected US jobs data raised questions about fuel demand.Front-month West Texas Intermediate crude futures eased by 0.3% to $77.08 per barrel, while Brent futures eased by 0.4% to $82.15/bbl.ING strategists said that despite clear signs of progress in recent days, the tenor of the rhetoric and growing distrust between the US and Iran mean tensions could escalate once again.On Friday, the US sanctioned two cryptocurrency exchanges and a network of companies allegedly helping Iran's Islamic Revolutionary Guard Corps and other sanctioned entities move and launder billions of dollars through digital assets."We will continue to increase the economic pressure," Treasury Secretary Scott Bessent said in a statement.On Thursday, Iran's speaker of Parliament, Mohammad Baqer Qalibaf, alleged that President Trump was staging "theater diplomacy," as Washington and Tehran offer conflicting accounts of bilateral engagement aimed at ending their months-long hostilities.Meanwhile, Iran and Oman are working on an agreement to define transit routes through the Strait.The structure of the Iran-Oman agreement in its current form and the power it yields to Iran is nothing that Trump can accept politically, Bjarne Schieldrop, chief commodities analyst at SEB Research, said, adding that the US President's options are shrinking.An Iranian lawmaker on Thursday reportedly said a parliament committee is reviewing a preliminary bill to ban US, Israeli and other vessels deemed hostile from the Hormuz, and fine violators of the proposed restrictions up to a fifth of cargo value.The plan, according to local media reports, would also bar Israeli cargo and related vessels. The restrictions will extend to "countries and individuals that have caused damage to Iran" until that harm is "compensated."The Middle East conflict has escalated after Yemen's Houthis attacked a Saudi oil tanker in the northern Red Sea off the coast of Yanbu on Wednesday.Traffic through the Middle East energy chokepoints diverged, with Kpler data showing 8 confirmed crossings in the Hormuz, down 33%, while crossings via Bab el-Mandeb rose 18% to 26.ING strategists said that flows via the Hormuz will start to normalize through Q3, while forecasting Brent prices to average $80/bbl this quarter. However, there's plenty of risk and uncertainty to this view, the analysts said.Capping the gains, the latest data from the Bureau of Labor Statistics showed that the US economy lost 139,000 jobs in July, compared with a downwardly revised 20,000 for the previous month. The unemployment rate slipped to 4.1% as the labor force participation rate fell further to 61.4%.

Commodities

US Natural Gas Update: Futures Rise as Strong Demand Offsets Bearish Storage Data

US natural gas futures held onto gains in after-hours trading on Friday as firm domestic demand and strong LNG exports continued to support sentiment despite Thursday's bearish storage data.The front-month Henry Hub contract and the continuous contract both rose 1.17% to $2.67 per million British thermal units.NRG Energy said forecast heat across much of the central and southern US is expected to keep cooling demand elevated through mid-August.Analysts said that geopolitical tensions involving the US and Iran, along with continued concerns over shipping through the Strait of Hormuz, remain supportive for global oil and LNG markets.US dry gas production stood at 111.4 billion cubic feet per day, while Canadian imports fell to a two-week low of 4.6 Bcf/d, reducing total supply to 116 Bcf/d, according to Gelber & Associates.LNG feedgas flows climbed to a two-week high of 18.8 Bcf/d and power burn held at 49 Bcf/d, leaving market balances modestly supportive despite elevated production.Gelber & Associates said temperatures are expected to remain above normal through early next week, with power burn forecast to peak near 50.2 Bcf/d on Tuesday.According to US Energy Information Administration data released Thursday, working gas in storage increased by 33 billion cubic feet for the week ended July 31, lifting total inventories to 3,117 Bcf, about 6.7% above the five-year average.