Mid-Day Market Update: U.S. Markets Extend Losses; Hewlett-Packard Shares Rise On Analyst Upgrade

Midway through trading Tuesday, the Dow traded down 0.17 percent to 15,857.40 while the NASDAQ declined 0.30 percent to 4,017.33. The S&P also fell, dropping 0.42 percent to 1,779.07.

Top Headline
FactSet Research Systems FDS reported a 4.8% rise in its fiscal first-quarter profit and issued a weak earnings guidance for the current quarter.

FactSet Research expects current-quarter earnings of $1.20 to $1.23 per share, versus analysts' estimates of $1.25 per share. It expects revenue of $225 million to $228 million, versus analysts' estimates of $227 million.

FactSet Research's quarterly profit surged to $52.2 million, or $1.19 per share, from $49.8 million, or $1.11 per share, in the year-ago period. Excluding one-time items, its adjusted earnings came in at $1.22 per share. Its revenue climbed 5.6% to $223 million. The company had earlier expected earnings of $1.21 to $1.24 per share on revenue of $222 million to $225 million.

Equities Trading UP
KKR Financial Holdings LLC KFN shot up 28.04 percent to $12.10 after the company agreed to be acquired by KKR & Co KKR for $2.6 billion.

Shares of Frontier Communications FTR got a boost, shooting up 8.18 percent to $4.76 after AT&T T announced its plans to sell its Wireline Residential and Business Services and associated assets in Connecticut to Frontier for $2 billion in cash.

Hewlett-Packard Company HPQ was also up, gaining 2.43 percent to $27.55 after JP Morgan upgraded the stock from Neutral to Overweight and lifted the price target from $30.00 to $35.00.

Equities Trading DOWN
Shares of FactSet Research Systems FDS were down 4.95 percent to $111.28 after the company issued a weak earnings guidance for the current quarter.

Spectrum Pharmaceuticals SPPI shares tumbled 7.51 percent to $8.38 after the company announced an offering of $100 million of convertible notes.

Kohlberg Kravis Roberts & Co LP KKR was down, falling 2.83 percent to $24.37 after the company announced its plans to acquire KKR Financial Holdings in an all-stock deal.

Commodities
In commodity news, oil traded down 0.12 percent to $97.36, while gold traded down 1.13 percent to $1,230.40.

Silver traded down 1.07 percent Tuesday to $19.89, while copper fell 0.01 percent to $3.33.

Eurozone
European shares were lower today. The Spanish Ibex Index dropped 0.91 percent, while Italy's FTSE MIB Index declined 1.63 percent. Meanwhile, the German DAX fell 0.86 percent and the French CAC 40 dipped 1.24 percent while U.K. shares tumbled 0.55 percent.

Economics
U.S. consumer prices came in flat in November, while the core CPI rose 0.2%. However, economists were projecting both the main CPI and core CPI to gain by 0.1%.

The U.S. current account deficit shrank to $94.8 billion in the third quarter, versus a downwardly revised $96.6 billion in the second quarter.

The ICSC-Goldman Sachs store sales index rose 4.8% in the week ended Saturday versus the earlier week.

The Johnson Redbook Retail Sales Index dropped 1.4% in the first two weeks of December versus November.

The NAHB housing market index rose to 58.00 in December, versus a prior reading of 54.00. However, economists were expecting a reading of 55.00.

The Federal Open Market Committee begins its 2-day meeting today.

The Treasury is set to auction 2-year notes.