Mid-Morning Market Update: Markets Edge Higher; Big Lots Earnings Miss Expectations

Following the market opening Friday, the Dow traded up 0.07 percent to 26,003.77 while the NASDAQ gained 0.30 percent to 8,112.76. The S&P also rose, gaining 0.08 percent to 2,903.56.

Leading and Lagging Sectors

Friday morning, the real estate shares rose 0.63 percent. Meanwhile, top gainers in the sector included IRSA Propiedades Comerciales S.A. IRCP up 6 percent, and PotlatchDeltic Corporation PCH up 3 percent.

In trading on Friday, energy shares fell 0.82 percent.

Top Headline

Big Lots, Inc. BIG reported downbeat earnings for its second quarter and issued weak forecast for FY18.

Big Lots posted quarterly earnings of $0.59 per share on revenue of $1.222 billion. However, analysts were expecting earnings of $0.67 per share on revenue of $1.23 billion. Big Lots expects FY18 adjusted earnings of $4.40 to $4.55 per share, versus analysts’ estimates of $4.57 per share.

Equities Trading UP

American Outdoor Brands Corporation AOBC shares shot up 34 percent to $13.13 after reporting a first-quarter earnings beat. The company issued strong second-quarter and FY19 earnings guidance.

Shares of VirnetX Holding Corp VHC got a boost, shooting up 11 percent to $3.275 following reports that a federal judge has denied Apple a new trial in a patent infringement case against the company.

Lululemon Athletica Inc. LULU shares were also up, gaining 15 percent to $156.87 after the company reported better-than-expected earnings for its second quarter. The company issued strong third-quarter guidance.

Equities Trading DOWN

Zuora, Inc. ZUO shares dropped 18 percent to $27.89. Zuora reported better-than-expected earnings for its second quarter, but issued weak guidance for its third quarter.

Shares of Ambarella, Inc. AMBA were down 7 percent to $36.8416. Ambarella reported upbeat results for its second quarter, but issued weak third-quarter sales guidance.

Big Lots, Inc. BIG was down, falling around 10 percent to $43.37 after the company reported downbeat earnings for its second quarter and issued weak forecast for FY18.

Commodities

In commodity news, oil traded down 0.34 percent to $70.01 while gold traded up 0.41 percent to $1,209.90.

Silver traded up 0.35 percent Friday to $14.645, while copper fell 0.86 to $2.694.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 fell 0.61 percent, the Spanish Ibex Index fell 0.56 percent, while Italy’s FTSE MIB Index dropped 0.50 percent. Meanwhile the German DAX declined 0.75 percent, and the French CAC 40 slipped 1.04 percent while U.K. shares fell 0.57 percent.

Economics

The Chicago PMI declined to 63.60 for August, versus prior reading of 65.50. However, economists were expecting a reading of 63.00.

The final reading of University of Michigan's consumer sentiment index rose to 96.2 for August, versus preliminary reading of 95.3.

The Baker Hughes North American rig count report for the latest week is schedule for release at 1:00 p.m. ET.