Mid-Morning Market Update: Markets Tumble; Goldman Sachs Posts Upbeat Earnings

Following the market opening Thursday, the Dow traded down 1.26 percent to 15,938.77 while the NASDAQ tumbled 1.55 percent to 4,149.89. The S&P also fell, dropping 1.42 percent to 1,836.09.

Leading and Lagging Sectors

Industrials shares dropped by just 0.58 percent on Thursday. Top gainers in the sector included ITT Educational Services ESI, Tsakos Energy Navigation TNP, and Cenveo CVO.

In trading on Thursday, telecommunications services shares were relative laggards, down on the day by about 1.48 percent. Top losers in the sector included Telecom Italia S.p.A. TI, down 7.1 percent, and Telefónica, S.A. TEF, off 4.4 percent.

Top Headline

The Goldman Sachs Group GS reported stronger-than-expected third-quarter profit.

The New York-based bank posted a quarterly profit of $2.24 billion, or $4.57 per share, versus a year-ago profit of $1.51 billion, or $2.88 per share.

Its sales climbed to $8.39 billion versus $6.72 billion. However, analysts were expecting earnings of $3.21 per share on revenue of $7.85 billion.

Equities Trading UP

Chesapeake Energy CHK shares shot up 12.83 percent to $20.05 after the company announced the sale of Southern Marcellus and Utica Shale assets for $5.375 billion.

Shares of Winnebago Industries WGO got a boost, shooting up 4.88 percent to $23.00 after the company reported better-than-expected fiscal fourth-quarter earnings.

Delta Air Lines DAL shares were also up, gaining 4.04 percent to $33.69 after the company reported upbeat profit for the third quarter.

Equities Trading DOWN

Shares of Netflix NFLX were down 23.77 percent to $341.96 as the company issued a weak forecast for the fourth quarter. During the quarter, Netflix added 3.02 million subscribers, below prior outlook of 3.69 million additions.

Tetraphase Pharmaceuticals TTPH shares tumbled 12.98 percent to $20.59 after the company announced a proposed public offering of common stock.

Baker Hughes BHI was down, falling 9.51 percent to $48.53 after the company reported downbeat third-quarter profit.

Commodities

In commodity news, oil traded down 1.70 percent to $80.39, while gold traded down 0.52 percent to $1,238.30.

Silver traded down 1.25 percent Thursday to $17.25, while copper fell 1.50 percent to $2.96.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 dropped 1.08 percent, the Spanish Ibex Index fell 2.24 percent, while Italy’s FTSE MIB Index declined 1.80 percent. Meanwhile, the German DAX declined 0.88 percent and the French CAC 40 tumbled 2.03 percent while UK shares fell 1.16 percent.

Economics

US jobless claims dropped 23,000 to 264,000 in the week ended Oct. 11. However, economists were expecting initial claims to reach 289,000 in the week.

Industrial production rose 1% in September, versus economists’ expectations for a 0.4% gain.

The general conditions index of the Philadelphia Fed's Survey fell to 20.70 in October, versus a prior reading of 22.50. However, economists were expecting a reading of 19.80.

The NAHB housing market index dropped 5 points to 54 in October. However, economists were expecting a reading of 59 in the month.

The Treasury is set to auction 3-and 6-month bills.

Data on money supply will be released at 4:30 p.m. ET.

Posted In: NewsGuidanceEurozoneFuturesCommoditiesTop StoriesEconomicsMarkets
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