Market Update: Fed Meeting Influences ETF Activity
8 months ago

The broad market exchange-traded fund SPDR S&P 500 ETF Trust ($SPY) was down 0.3%, and the actively traded Invesco QQQ Trust ($QQQ) retreated 0.2% in Tuesday's premarket activity, as the Federal Reserve's two-day policy meeting kicks off later in the day. US stock futures were also lower, with S&P 500 Index futures down 0.4%, Dow Jones Industrial Average futures slipping 0.4%, and Nasdaq futures losing 0.2% before the start of regular trading. The November US national retail sales bulletin will be released at 8:30 am ET, followed by the November industrial production bulletin at 9:15 am ET. The business inventories report for October and the housing market index for December will be released at 10 am ET. In premarket activity, Bitcoin was up by 1%, and the cryptocurrency fund ProShares Bitcoin Strategy ETF ($BITO) was 1.1% higher. Power Play: Energy The iShares US Energy ETF ($IYE) was down 0.1%, while the Energy Select Sector SPDR Fund ($XLE) was down by 0.2%. Kosmos Energy ($KOS) stock was up more than 17% before Tuesday's opening bell after the company said it does not currently plan to make a firm offer to acquire Tullow Oil. Winners and Losers: Health Care The Health Care Select Sector SPDR Fund ($XLV) retreated 0.1%, the Vanguard Health Care Index Fund ($VHT) was down 0.1%, while the iShares US Healthcare ETF ($IYH) was flat.

The iShares Biotechnology ETF ($IBB) was inactive. Pfizer ($PFE) stock was up 3% premarket after the company reaffirmed its 2024 guidance and issued 2025 adjusted EPS and revenue guidance in line with analyst expectations. Consumer The Consumer Staples Select Sector SPDR Fund ($XLP) was flat, while the Vanguard Consumer Staples Fund ($VDC) was down 0.1%.

The iShares US Consumer Staples ETF ($IYK) was inactive, and the Consumer Discretionary Select Sector SPDR Fund ($XLY) lost 0.3%. The VanEck Retail ETF ($RTH) was inactive, while the SPDR S&P Retail ETF ($XRT) was inactive. Tesla ($TSLA) shares were up 2.8% pre-bell after Wedbush Securities described Tesla's autonomous driving and artificial intelligence initiatives as potential "game changers" for the company and Chief Executive Elon Musk. Industrial Industrial Select Sector SPDR Fund ($XLI) slipped 0.2%, the Vanguard Industrials Index Fund ($VIS) was flat, while the iShares US Industrials ETF (IYJ) was inactive. ATS ($ATS) stock was down 2.2% before the opening bell, adding to the previous day's losses after the company said late Monday it upsized a private offering of 6.5% senior unsecured notes due 2032 to CA$200 million ($140 million) from the initial target size of CA$150 million. Financial Financial Select Sector SPDR Fund (XLF) retreated 0.2%.

Direxion Daily Financial Bull 3X Shares ($FAS.US) was down 0.7%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares ($FAZ) was 0.8% higher. EPAM Systems ($EPAM) shares were up 1.7% pre-bell Tuesday after Barclays upgraded the company to overweight from equal weight and raised its price target to $290 from $250. Technology Technology Select Sector SPDR Fund (XLK) retreated 0.5%, and the iShares US Technology ETF ($IYW) was 0.5% lower, while the iShares Expanded Tech Sector ETF ($IGM.US) was up 0.1%.

Among semiconductor ETFs, SPDR S&P Semiconductor ETF ($XSD) retreated 1.4%, while the iShares Semiconductor ETF ($SOXX) slipped 0.5%. CGI ($GIB) shares were up 1.2% in recent Tuesday premarket activity after the company signed a 25-year deal with military pilot and aircrew training company SkyAlyne. Commodities Front-month US West Texas Intermediate crude oil retreated 1.1% to $69.95 per barrel on the New York Mercantile Exchange.

Natural gas gained 0.5% to reach $3.23 per 1 million British Thermal Units. United States Oil Fund (USO) lost 0.9%, while the United States Natural Gas Fund (UNG) was 0.4% lower. Gold futures for February declined 0.4% to $2,659.90 an ounce on the Comex, while silver futures fell nearly 1% to $30.76 an ounce.

SPDR Gold Shares ($GLD) lost 0.3%, while the iShares Silver Trust ($SLV) was down by 0.7%..

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