ETF Preview: Broad-Market Funds Mixed Amid General Weakness; Homebuilder Funds Supported By Positve Earnings

08:19 AM Eastern Standard Time, 02/05/2010 (MidnightTrader) –

Active-volume exchange-traded funds in Thursday’s regular session:

SPDR S&P 500 (SPY): -3.1%

iShares S&P 500 (IVV): -3.1%

PowerShares QQQ (QQQQ): -2.9%

Select Financial Sector SPDRS (XLF): -4.3%

iShares Russell 2000 (IWM): -3.3%

iShares Russell 1000 Growth (IWF): -2.9%

iShares MSCI Emerging Markets Index (EEM): -4.5%

United States Oil Fund (USO): -4.9%

The top ETF volume movers in pre-market action this morning:

SPY, -0.5%

QQQQ, -0.1%

SLV, -1.3%

IWM, -0.6%

FAZ, +0.5%

Winners and Losers

Major market ETFs, including the SPY, DIA, UYG and others, are mixed this morning. Broad-market futures are lower, but some discounted funds are drawing buyers. The PowerShares QQQ (QQQQ), which tracks the technology-studded Nasdaq Composite, is up 0.1%. Nasdaq futures are modestly firmer.

Attention is focused on the 8:30 a.m. ET release of January employment data. Economists polled by MarketWatch are expecting payrolls to grow by a seasonally adjusted 25,000, which would be just the second increase since the recession began 25 months earlier. The unemployment rate is expected to remain steady at 10%.

Select Financial Sector SPDRs (XLF) is trading flat to lower in pre-market action. The Direxion Financial Bull 3X fund (FAS) is down 0.6%; its bearish counterpart, FAZ, is up 0.9%. Leading, active financial shares are modestly lower: C, -0.3%; BAC, -0.7%. MasterCard (MA) is higher in its first pre-bell matches, rising after the stock was reportedly upgraded by Wells Fargo to Outperform from Market Perform.

Technology Select Sector SPDR (XLK) and iShares U.S. Technology (IYW)

are drawing light early action but could find modest support early on as the tech-heavy Nasdaq has managed to hold up better than the broad averages during this recent sell-off.

Also in the space, S&P North American Technology Semiconductor fund (IGW) and Semiconductor HOLDRs (SMH) are expected flat to mixed as the opening bell nears. Internet HOLDRs (HHH) iShares, ProShares Ultra Technology ETF (ROM), PowerShares Dynamic Software (PSJ) and iShares S&P North American Tech-Software (IGV) are expected to join the broader sector in flat to lower trade.

SPDR S&P Retail (XRT) could feel the tug of broader market weakness against some positive sector news. Gap (GPS) is likely to clear some pre-market matches as more volume interest flows into the issue in the second-half of the morning session. Citigroup reportedly upgraded the stock to Buy from Hold.

Commodities -

Oil futures traded marginally higher initially but have since turned lower after a 5% drop in the previous session. March futures are down $0.24 to $72.91 a barrel in electronic trading on Globex. The contract had earlier fallen to an intraday low of $72.46 a barrel.

Gold futures are down $11.70 to $1,051.30 an ounce.

SPDR Gold Shares (GLD) is down 1.1%. The Market Vectors Gold Miners fund (GDX) is down 1.3%. iShares Silver Trust (SLV) is down 1.2%. United States Oil Fund (USO) is down 0.1%. United States Natural Gas (UNG) is up 1.9%.

ETF Power Play -

PowerShares Dynamic Building & Construction fund (PKB), SPDR S&P Homebuilders (XHB), and iShares Dow Jones US Home Construction (ITB) could see increased interest closer to the bell, but the direction is sure to be driven by the jobs report. A weaker-than-expected reading could offset positive sector news.

Beazer Homes USA (BZH) reports Q1 EPS from continuing operations with items of $1.09 vs a loss of $2.05 a year earlier. The Thomson Reuters mean analyst estimate, usually ex-items, was for a loss of $0.90. Revenue of $218.8 million compares to $218.2 million a year earlier. The Street looked for $200 million.

Also reported, home closings from continuing operations: 961 homes, an increase year-over-year of 8.0%. New orders from continuing operations: 728 homes, an increase year-over-year of 36.6%. Cancellation rate improved to 26.9% in the first quarter compared to 46.1% in the first quarter of the prior year.