Exchange-Traded Funds, Equity Futures Lower Pre-Bell Wednesday as Nvidia Slump Continues

08:24 AM EDT, 09/04/2024 (MT Newswires) -- The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was down 0.4% and the actively traded Invesco QQQ Trust (QQQ) was 0.7% lower in Wednesday's premarket activity, as Nvidia's (NVDA) continuing slump raises doubts about the AI-driven rally.

US stock futures were also lower, with S&P 500 Index futures down 0.4%, Dow Jones Industrial Average futures slipping 0.1%, and Nasdaq futures retreating 0.7% before the start of regular trading. Nvidia shares were down 2% in recent premarket activity.

US mortgage applications rose 1.6% in the week ended Aug. 30, driven by a 3% increase in new purchase applications as mortgage rates edged down slightly, the Mortgage Bankers Association said Wednesday. Refinancing applications dipped 0.3%.

The July international trade in goods and services bulletin will be posted at 8:30 am ET, followed by the July Job Openings and Labor Turnover Survey and the July factory orders report at 10 am ET.

The Beige Book, a compilation of economic and business reports from the 12 regional Federal Reserve branches, is due at 2 pm ET.

In premarket action, bitcoin was down by 2.5% and the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 2.6% lower.

Power Play:

Health Care

The Health Care Select Sector SPDR Fund (XLV) retreated marginally by 0.02%. The Vanguard Health Care Index Fund (VHT) was down nearly 0.1% while the iShares US Healthcare ETF (IYH) gained 0.1%. The iShares Biotechnology ETF (IBB) declined 0.5%.

Atara Biotherapeutics (ATRA) shares were up 19% premarket after the company said late Tuesday that it signed definitive agreements to sell 758,900 shares at $8.25 apiece in a registered direct offering. The stock stood at $8.11 in recent Wednesday premarket activity.

Winners and Losers:

Technology

Technology Select Sector SPDR Fund (XLK) retreated 0.8%, and the iShares US Technology ETF (IYW) and the iShares Expanded Tech Sector ETF (IGM) were inactive. Among semiconductor ETFs, SPDR S&P Semiconductor ETF (XSD) declined 0.8%, while the iShares Semiconductor ETF (SOXX) fell 1.2%.

Zscaler (ZS) shares were down nearly 17% in recent Wednesday premarket activity after the company posted overnight a lower-than-expected non-GAAP earnings outlook for fiscal Q1 and fiscal 2025.

Industrial

Industrial Select Sector SPDR Fund (XLI) was flat while the Vanguard Industrials Index Fund (VIS) and the iShares US Industrials ETF (IYJ) were inactive.

REV Group (REVG) shares fell more than 12% before the opening bell after the company reported lower fiscal Q3 net sales and cut its guidance for fiscal 2024 net sales.

Consumer

The Consumer Staples Select Sector SPDR Fund (XLP) was down 0.04%, while the Vanguard Consumer Staples Fund (VDC) was flat. The iShares US Consumer Staples ETF (IYK) was also flat, and the Consumer Discretionary Select Sector SPDR Fund (XLY) lost 0.4%. The VanEck Retail ETF (RTH) and the SPDR S&P Retail ETF (XRT) were inactive.

Hormel Foods (HRL) stock traded down 6.7% pre-bell after the company reported lower fiscal Q3 financial results and cut its outlook for fiscal 2024 revenue.

Financial

Financial Select Sector SPDR Fund (XLF) declined 0.1%. Direxion Daily Financial Bull 3X Shares (FAS) was down 0.2%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.1% higher.

Waterdrop (WDH) shares were up 0.9% pre-bell Wednesday after the company reported higher Q2 net profit and said its year-over-year operating costs and expenses fell by 13.4%.

Energy

The iShares US Energy ETF (IYE) was inactive, while the Energy Select Sector SPDR Fund (XLE) was flat.

Transocean (RIG) stock was up 1.6% before Wednesday's opening bell after the company said it received a contract from Reliance Industries for a deepwater drilling project in India, potentially extending through 2029 and adding $123 million to its backlog.

Commodities

Front-month US West Texas Intermediate crude oil advanced 0.3% to $70.56 per barrel on the New York Mercantile Exchange. Natural gas was up 1% at $2.23 per 1 million British Thermal Units. United States Oil Fund (USO) gained by 0.3%, while the United States Natural Gas Fund (UNG) was 1.5% higher.

Gold futures for December declined by 0.1% to $2,519.40 an ounce on the Comex, while silver futures gained by 0.1% to $28.39 an ounce. SPDR Gold Shares (GLD) were down 0.1%, and iShares Silver Trust (SLV) was 0.04% lower.