Mid-Afternoon Market Update: Markets Dip Despite Large Amount of M&A
Midway through trading Monday, the Dow traded down 1.16 percent to 16,246.87 while the NASDAQ surged 1.80 percent to 4,099.29. The S&P also fell, dropping 1.39 percent to 1,816.16.
Lululemon Athletica (NASDAQ: LULU) lowered its guidance for the quarter. Lululemon now projects FQ4 earnings of $0.71 to $0.73 per share, versus its December outlook of $0.78 to $0.80 per share. It expects revenue of $513 million to $518 million, versus its earlier forecast of $535 million to $540 million.
Equities Trading UP
Shares of Alnylam Pharmaceuticals (NASDAQ: ALNY) got a boost, shooting up early in the day, but settling on a gain of 40.40 percent to $92.96 after the company reported that it has acquired investigational RNAi Therapeutic assets from Merck (NYSE: MRK). Genzyme and Alnylam expanded their collaboration on rare genetic diseases.
Wendy's (NASDAQ: WEN) was also on the rise, gaining 6.16 percent to $8.96 after the company reaffirmed its long-term outlook, announced a $275 million buyback, and lifted its fourth quarter and fiscal year guidance above street consensus.
Equities Trading DOWN
Shares of SodaStream International (NASDAQ: SODA) were down 25.44 percent to $37.21 after the company lowered its FY13 forecast.
Lululemon Athletica (NASDAQ: LULU) tumbled 16.75 percent to $49.63 after the company cut its outlook.
Cree (NASDAQ: CREE) was also down, falling 9.69 percent to $60.66 after Stifel downgraded the company to a Hold rating, while removing its $70 price target, causing traders to rush for the exits.
In commodity news, oil traded down 1.31 percent to $91.51, while gold traded up 0.54 percent to $1,253.60. Silver traded up 1.25 percent Monday to $20.41, while copper fell 0.09 percent to $3.34.
European shares were higher today. The Spanish Ibex Index rose 0.69 percent, while Italy's FTSE MIB Index surged 0.66 percent. Meanwhile, the German DAX climbed 0.32 percent and the French CAC 40 rose 0.30 percent while U.K. shares gained 0.19 percent.
The US Treasury monthly budget report for December will be released at 2:00 p.m. ET.
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