Mid-Day Market Update: Stocks Turn Red, Oracle Tumbles On Weak Sales
Midway through trading Friday, the Dow traded down 0.37 percent to 14,703.66 while the NASDAQ declined 0.96 percent to 3,332.44. The S&P fell, dropping 0.58 percent to 1,578.90.
Darden Restaurants (NYSE: DRI) reported a drop in its fourth-quarter profit.
Darden's quarterly profit declined to $133.2 million, or $1.01 per share, versus $151.2 million, or $1.15 per share, in the year-ago period.
Its revenue climbed to $2.30 billion from $2.07 billion. However, analysts were projecting earnings of $1.04 per share on revenue of $2.27 billion.
Darden estimates 2014 diluted earnings per share to decline by 3% to 5%, while it expects sales to increase by 6% to 8%.
Equities Trading UP
Spreadtrum Communications (NASDAQ: SPRD) shot up 16.64 percent to $26.00 after the company received a buyout offer from a unit of Tsinghua Holdings Co for $28.50 in cash per ADS.
Shares of Rexnord (NYSE: RXN) got a boost, shooting up 5.63 percent to $17.08 after the company announced the pricing of public offering of common stock by selling stockholder.
Facebook (NASDAQ: FB) was also up, gaining 1.13 percent to $24.17 after analysts at UBS upgraded the stock from “neutral” to “buy.”
Equities Trading DOWN
Shares of Oracle (NASDAQ: ORCL) were down 8.08 percent to $30.53 after the company reported downbeat fiscal fourth-quarter revenue.
Ashford Hospitality Trust (NYSE: AHT) was down, falling 6.43 percent to $11.64 after the firm priced 11 million shares of common stock at $12.00 per share.
Zynga (NASDAQ: ZNGA) shares tumbled 6.30 percent to $2.68 after Morgan Stanley downgraded the stock from “equal-weight” to “underweight.”
In commodity news, oil traded down 1.96 percent to $93.28, while gold traded up 0.35 percent to $1,290.70.
Silver traded up 0.16 percent Friday to $19.86, while copper rose 0.34 percent to $3.08.
European shares were lower today. The current account for the eurozone for April declined less than expected to 19.5 billion euros from 25.9 billion euros vs. the expected 14.2 billion euros.
The Spanish Ibex Index fell 1.56 percent and the Italian FTSE MIB Index declined 1.89 percent. Meanwhile, the German DAX fell 1.76 percent and the French CAC 40 declined 1.11 percent while U.K. shares tumbled 0.70 percent.
The ECRI Weekly Leading Index declined to 130.3 in the recent week ended June 14, versus 131.2 the earlier week.
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