Mid-Afternoon Market Update: Markets Turn Red as Dish Network Rises
Toward the end of trading Wednesday, the Dow traded down 0.34 percent to 16,312.22 while the NASDAQ dropped 0.97 percent to 4,193.05. The S&P also fell, dropping 0.40 percent to 1,858.77.
Leading and Lagging Sectors
Healthcare sector moved up 0.39 percent, with Keryx Biopharmaceuticals (NASDAQ: KERX) moving up 15 percent to gain the top spot. Top gainers in the sector included China Biologic Products (NASDAQ: CBPO), with shares up 7.4 percent, and Laboratory Corp. of America Holdings (NYSE: LH), with shares up 5.5 percent.
In trading on Wednesday, basic materials shares dropped by 0.30 percent. Among the sector stocks,Amyris (NASDAQ: AMRS) was down more than 8.5 percent, while Universal Stainless & Alloy Products (NASDAQ: USAP) tumbled around 5 percent.
Francesca's Holdings (NASDAQ: FRAN) reported a 29% drop in its fiscal fourth-quarter earnings and issued a weak first-quarter outlook. Francesca's expects current-quarter earnings of $0.20 to $0.24 per share on sales of $85 million and $90 million. However, analysts projected earnings of $0.28 per share on sales of $92 million. Francesca's posted its quarterly profit of $10.6 million, or $0.25 per share, versus a year-ago profit of $14.9 million, or $0.33 per share.
Excluding special items, its adjusted earnings came in at $0.27 per share. Its revenue rose 6.3% to $92.1 million. The company had projected a profit of $0.27 to $0.29 per share on sales of $93 million to $95 million. Its gross margin shrank to 50.6% from 53.4%, while comparable-store sales slipped 6%.
Equities Trading UP
Five Below (NASDAQ: FIVE) shares shot up 11.61 percent to $42.41 after the company reported better-than-expected fourth-quarter results. The company posted its quarterly adjusted earnings of $0.47 per share on revenue of $212 million. However, analysts were projecting earnings of $0.45 per share on revenue of $207.8 million.
Shares of Steelcase (NYSE: SCS) got a boost, shooting up 11.21 percent to $16.36 after the company reported better-than-expected fourth-quarter earnings. Steelcase reported its Q4 earnings of $0.18 per share, beating analysts' estimates by $0.01 per share. Raymond James upgraded the stock from Outperform to Strong Buy and lifted the price target from $17.50 to $19.00.
Dish Network (NASDAQ: DISH) shares were also on the rise Wednesday, gaining 7.79 percent to $62.97 after a report surfaced that the company's CEO had approached the DirectTV CEO about a merger.
Equities Trading DOWN
Shares of Exelixis (NASDAQ: EXEL) were down 37.89 percent to $4.00 after the company issued an update on ongoing COMET-1 phase 3 pivotal trial in men with metastatic castration-resistant prostate cancer. Stifel Nicolaus lowered the price target on the stock from $11.00 to $9.00.
Francesca's Holdings (NASDAQ: FRAN) shares tumbled 16.80 percent to $17.35 after the company reported a 29% drop in its fiscal fourth-quarter earnings and issued a weak Q1 outlook.
Plug Power (NASDAQ: PLUG) was also down, falling 21.34 percent to $6.67 after the street seemingly realized its new contract was for fuel cells for forklifts, meaning the deal did not match expectations set by the company's CEO on Tuesday.
In commodity news, oil traded up 0.16 percent to $100.24, while gold traded down 0.82 percent to $1,300.60.
Silver traded down 1.34 percent Wednesday to $19.72, while copper rose 0.63 percent to $2.96.
European shares were higher today.
The Spanish Ibex Index rose 1.49 percent, while Italy's FTSE MIB Index climbed 1.14 percent.
Meanwhile, the German DAX jumped 1.12 percent and the French CAC 40 rose 0.83 percent while U.K. shares surged 0.15 percent.
The MBA reported that its index of mortgage application activity dropped 3.50% in the week ended March 21.
US durable-goods orders gained 2.2% in February, versus economists' expectations for a 0.8% rise.
The preliminary reading of the Markit services PMI came in at 55.50 in March, versus economists' expectations for a reading of 54.00.
Crude stockpiles climbed 6.6 million barrels for the week ended March 21, the US Energy Information Administration reported. However, analysts were expecting a gain of 2.6 million barrels.
Gasoline supplies slipped 5.1 million barrels, while distillate stockpiles increased 1.6 million barrels.
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