Mid-Morning Market Update: Markets Drop; Time Warner Posts Upbeat Results
Following the market opening Wednesday, the Dow traded down 0.08 percent to 16,522.04 while the NASDAQ tumbled 0.71 percent to 4,074.41. The S&P also fell, dropping 0.27 percent to 1,873.29.
Leading and Lagging Sectors
Wednesday morning, the telecommunications services sector proved to be a source of strength for the market. Leading the sector was strength from NQ Mobile (NYSE: NQ) and Level 3 Communications (NYSE: LVLT). In trading on Wednesday, technology shares were relative laggards, down on the day by about 0.50 percent.
Time Warner (NYSE: TWX) reported upbeat first-quarter results. Time Warner's quarterly net income from continuing operations surged to $1.29 billion, or $1.42 per share, versus a year-ago profit of $754 million, or $0.79 per share. On an adjusted basis, Time Warner earned $0.91 per share, beating analysts' estimates of $0.88 per share. Its revenue climbed 9% to $7.55 billion compared to $6.94 billion. However, analysts were estimating revenue of $6.61 billion.
Equities Trading UP
LogMeIn (NASDAQ: LOGM) shares shot up 18.05 percent to $46.18 after the company reported better-than-expected quarterly results and issued a strong outlook.
Shares of Energizer Holdings (NYSE: ENR) got a boost, shooting up 17.19 percent to $114.50 after the company announced its plans to split into 2 companies.
Equities Trading DOWN
Shares of Power Integrations (NASDAQ: POWI) were 23.67 percent to $44.59 after the company reported downbeat Q1 results and issued a weak Q2 revenue outlook.
Vistaprint NV (NASDAQ: VPRT) shares tumbled 20.19 percent to $42.63 on weaker-than-expected quarterly results.
Twitter (NYSE: TWTR) was down, falling 11.66 percent to $37.65 after the company posted a wider first-quarter net loss. The company also reported weaker-than-expected active monthly users. Twitter's adjusted profit came in flat on a per share basis, versus analysts' expectations for a loss of $0.03 per share.
In commodity news, oil traded down 1.26 percent to $100.00, while gold traded down 0.36 percent to $1,291.60.
Silver traded down 1.58 percent Wednesday to $19.23, while copper fell 0.21 percent to $3.07.
European shares were mostly lower today.
The Spanish Ibex Index fell 0.33 percent, while Italy's FTSE MIB Index declined 0.87 percent.
Meanwhile, the German DAX surged 0.05 percent and the French CAC 40 tumbled 0.50 percent while U.K. shares gained 0.10 percent.
Private-sector employers added 220,000 jobs in April, according to Automatic Data Processing. However, economists were estimating an addition of 210,000 private-sector jobs in the month.
US GDP growth slowed to an annual pace of 0.1% in the first quarter.
The employment cost index increased 0.3% in the first quarter, versus economists' expectations for a 0.5% gain.
The MBA reported that its index of mortgage application activity dropped 5.9% to 333.2 in the week ended April 25.
The Chicago PMI for April increased to 63.0 in April versus 55.9 in March.
The Treasury is set to auction 3-and 10-year notes.
The FOMC will announce its policy decision at 2:00 p.m. ET.
Data on farm prices will be released at 3:00 p.m. ET.
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