The broad market exchange-traded fund SPDR S&P 500 ETF Trust ($SPY) increased by 0.3%, while the actively traded Invesco QQQ Trust ($QQQ) saw a modest rise of 0.1% in Tuesday's premarket activity as traders prepare for the upcoming inflation report, which is scheduled for release this week. U.S. stock futures also exhibited positive movement, with the S&P 500 Index futures climbing 0.2%, the Dow Jones Industrial Average futures advancing 0.2%, and Nasdaq futures up by 0.2% before the official trading session began.
Meanwhile, the NFIB's December US Small Business Optimism Index recorded an upward movement, rising to 105.1 from the previous month’s 101.7, and significantly higher than the 91.9 registered a year ago. The December producer price index bulletin is set to be unveiled at 8:30 am ET. Additionally, Federal Reserve Kansas City President Jeffrey Schmid is poised to address the market at 10 am ET, followed by remarks from New York Fed President John Williams at 3:05 pm ET.
In premarket trading, Bitcoin surged by 2.8%, with the cryptocurrency fund ProShares Bitcoin Strategy ETF ($BITO) mirroring this increase, also up by 2.8%. Power Play: Consumer: The Consumer Staples Select Sector SPDR Fund ($XLP) gained 0.1%, while the Vanguard Consumer Staples Fund ($VDC) increased by 0.3%.
The iShares US Consumer Staples ETF ($IYK) remained inactive, and the Consumer Discretionary Select Sector SPDR Fund ($XLY) advanced by 0.6%. Both the VanEck Retail ETF ($RTH) and the SPDR S&P Retail ETF ($XRT) showed no movement. KB Home ($KBH) shares surged nearly 10% in pre-market hours after the company reported fiscal Q4 results that exceeded expectations alongside significant double-digit growth in deliveries and net orders.
Winners and Losers: Health Care: The Health Care Select Sector SPDR Fund ($XLV) inched up by 0.03%. The Vanguard Health Care Index Fund ($VHT) saw a 0.5% increase, while iShares US Healthcare ETF ($IYH) remained inactive. The iShares Biotechnology ETF ($IBB) registered a gain of 0.1%. REGENXBIO ($RGNX) experienced an 8% increase in its premarket stock value after it announced a partnership with Nippon Shinyaku to develop and commercialize RGX-121, a potential treatment for Hunter syndrome, and RGX-111 for Hurler syndrome.
Financial: The Financial Select Sector SPDR Fund (XLF) advanced 0.2%. Direxion Daily Financial Bull 3X Shares ($FAS.US) were up by 0.8%, whereas the Direxion Daily Financial Bear 3X Shares ($FAZ) fell by 0.9%. Farmers & Merchants Bancorp ($FMAO) saw its shares rise nearly 3% in pre-market trading on Tuesday, building on previous gains.
The company's recent appointment of Andrew Baker as Chief Strategy Officer, along with the promotion of Taryn Marino to Chief Retail Banking Officer, has garnered investor interest. Technology: The Technology Select Sector SPDR Fund (XLK) rose by 0.4%, with the iShares US Technology ETF ($IYW) gaining 1%.
The iShares Expanded Tech Sector ETF ($IGM.US) experienced a notable rise of 4%. Among semiconductor ETFs, the SPDR S&P Semiconductor ETF ($XSD) remained inactive, while the iShares Semiconductor ETF ($SOXX) increased by 0.6%. United Microelectronics ($UMC) shares went up by 2.6% during recent premarket trading following the announcement that its Fab 12A in Taiwan has joined the World Economic Forum's Global Lighthouse Network.
Industrial: The Industrial Select Sector SPDR Fund ($XLI) gained 0.5%, and the Vanguard Industrials Index Fund ($VIS) saw a marginal increase of 0.03%. The iShares US Industrials ETF (IYJ) remained inactive. United Rentals ($URI) shares rose by 2.3% before the market opening, alongside a dramatic 107% surge in H&E Equipment Services ($HEES) shares after the companies reached a definitive agreement for United Rentals to acquire H&E for $92 per share in cash, valuing the enterprise at approximately $4.8 billion.
Energy: The iShares US Energy ETF ($IYE) remained stable, while the Energy Select Sector SPDR Fund ($XLE) saw a slight increase of 0.2%. BP ($BP) shares decreased by 1.8% before the market opened, as the company indicated that it anticipates "weaker" refining margins in Q4 to land between $100 million and $300 million, alongside a greater impact stemming from turnaround activity.
Commodities: In commodities, front-month US West Texas Intermediate crude oil declined by 0.3%, settling at $78.56 per barrel on the New York Mercantile Exchange. Natural gas prices fell by 4.5%, reaching $3.76 per million British Thermal Units. The United States Oil Fund (USO) dipped by 0.2%, whereas the United States Natural Gas Fund (UNG) saw a decrease of 4%.
Gold futures for February experienced a 0.1% rise, reaching $2,680.90 an ounce on the Comex, while silver futures increased by 0.2% to $30.36 an ounce. SPDR Gold Shares ($GLD) made a 0.3% gain, while the iShares Silver Trust ($SLV) moved up by 0.4%..