Exchange-Traded Funds, Equity Futures Higher Pre-Bell Wednesday as AI Investment Boosts Tech Sector

MT Newswires Live01-22

The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.4% and the actively traded Invesco QQQ Trust (QQQ) advanced 0.9% in Wednesday's premarket activity after President Donald Trump announced an up to $500 billion investment to support AI infrastructure in the US.

US stock futures were also higher, with S&P 500 Index futures up 0.5%, Dow Jones Industrial Average futures advancing 0.3%, and Nasdaq futures gaining 0.9% before the start of regular trading.

US mortgage applications edged up 0.1% in the week ended Jan. 17 as average 30-year rates eased to 7.02%, Mortgage Bankers Association data showed Wednesday.

The January Atlanta Fed Business Inflation Expectations bulletin and the December leading indicators report will be released at 10 am ET.

In premarket activity, bitcoin was down by 0.7% and the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.8% lower.

Power Play:

Consumer

The Consumer Staples Select Sector SPDR Fund (XLP) was up 0.2%, while the Vanguard Consumer Staples Fund (VDC) gained 0.6%. The iShares US Consumer Staples ETF (IYK) was inactive, and the Consumer Discretionary Select Sector SPDR Fund (XLY) lost 0.2%. The VanEck Retail ETF (RTH) was inactive, while the SPDR S&P Retail ETF (XRT) was flat.

Procter & Gamble (PG) shares were up 3.4% pre-bell after the company reported fiscal Q2 core earnings and revenue that exceeded FactSet analysts' estimates.

Winners and Losers:

Health Care

The Health Care Select Sector SPDR Fund (XLV) declined 0.4%. The Vanguard Health Care Index Fund (VHT), the iShares US Healthcare ETF (IYH) and the iShares Biotechnology ETF (IBB) were inactive.

Abbott Laboratories (ABT) stock was down 2.3% premarket after the company reported lower-than-expected Q4 net sales.

Energy

The iShares US Energy ETF (IYE) was flat, while the Energy Select Sector SPDR Fund (XLE) was down by 0.3%.

Halliburton (HAL) stock was down 2.2% before Wednesday's opening bell after the company reported lower Q4 adjusted earnings and revenue.

Financial

Financial Select Sector SPDR Fund (XLF) retreated 0.1%. Direxion Daily Financial Bull 3X Shares (FAS) was down 0.4%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) gained 0.2%.

Comerica (CMA) shares were down 2.1% pre-bell Wednesday after the company reported lower-than-expected Q4 adjusted earnings and revenue.

Industrial

Industrial Select Sector SPDR Fund (XLI) advanced 0.2% and the Vanguard Industrials Index Fund (VIS) gained 0.3%, while the iShares US Industrials ETF (IYJ) was inactive.

Textron (TXT) stock was down 1.7% before the opening bell after the company reported lower Q4 adjusted earnings and revenue, with revenue also trailing analysts' expectations.

Technology

Technology Select Sector SPDR Fund (XLK) advanced 1.2%, and the iShares US Technology ETF (IYW) was 1.2% higher, while the iShares Expanded Tech Sector ETF (IGM) was up 1.2%. Among semiconductor ETFs, SPDR S&P Semiconductor ETF (XSD) gained 0.2%, while the iShares Semiconductor ETF (SOXX) rose by 1.2%.

Microsoft (MSFT) shares were up 1.5% in recent Wednesday premarket activity after the company said late Tuesday it had partnered with OpenAI to cooperate on Stargate.

Commodities

Front-month US West Texas Intermediate crude oil retreated 0.1% to $75.78 per barrel on the New York Mercantile Exchange. Natural gas was down 0.1% at $3.75 per 1 million British Thermal Units. United States Oil Fund (USO) was down 0.2%, while the United States Natural Gas Fund (UNG) was 0.5% lower.

Gold futures for February advanced 0.3% to $2,767.30 an ounce on the Comex, and silver futures retreated 0.3% to $31.40 an ounce. SPDR Gold Shares (GLD) advanced by 0.6%, while the iShares Silver Trust (SLV) was 0.3% higher.

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