Market Overview

Mid-Morning Market Update: Markets Tumble; Wal-Mart Posts Lower Profit

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Following the market opening Thursday, the Dow traded down 0.60 percent to 16,514.11 while the NASDAQ declined 0.93 percent to 4,062.69. The S&P also fell, dropping 0.72 percent to 1,874.92.

Leading and Lagging Sectors
In trading on Wednesday, utilities shares declined by just 0.04 percent. Meanwhile, top gainers in the sector included Duke Energy (NYSE: DUK), up 1.2 percent, and American Water Works Company (NYSE: AWK), up 0.7 percent. Cyclical consumer goods & services shares dropped around 1.36 percent in trading on Thursday.

Top losers in the sector included VOXX International (NASDAQ: VOXX), down 27.1 percent, and Arctic Cat (NASDAQ: ACAT), off 12.4 percent.

Top Headline
Wal-Mart Stores (NYSE: WMT) reported weaker-than-expected first-quarter earnings and issued a weak earnings outlook for the current quarter. Wal-Mart's quarterly profit fell to $3.58 billion, or $1.11 per share, versus a year-ago profit of $3.78 billion, or $1.14 per share. Its revenue climbed 0.8% to $114.2 billion. However, analysts were projecting a profit of $1.15 per share on revenue of $116.4 billion Wal-Mart's traffic at US stores fell 1.4% in the quarter, while comparable store sales in the US declined 0.08%.

For the current quarter, Wal-Mart projects adjusted earnings of $1.15 per share to $1.25 per share, versus analysts' estimates of $1.28 per share.

Equities Trading UP
Gentiva Health Services (NASDAQ: GTIV) shares shot up 63.69 percent to $13.98 after the company received a proposal to be acquired by Kindred Healthcare (NYSE: KND) for $14.00 per share.

Shares of Clovis Oncology (NASDAQ: CLVS) got a boost, shooting up 14.90 percent to $58.70 on announcement of presentation of clinical data as ASCO.

Cisco Systems (NASDAQ: CSCO) shares were also up, gaining 7.19 percent to $24.45 as the company reported stronger-than-expected fiscal third-quarter results. Cisco reported adjusted earnings of $0.51 per share on revenue of $11.55 billion. However, analysts were projecting earnings of $0.48 per share on revenue of $11.36 billion.

Equities Trading DOWN
Shares of Bristol-Myers Squibb Company (NYSE: BMY) were 5.60 percent to $49.20 as the company reported that nivolumab in combo with yervoy in Phase 2 and 1b trials showed anti-tumor activity. BMO Capital downgraded Bristol-Myers Squibb from Overweight to Market Perform and cut the price target from $60.00 to $55.00.

Delek US Holdings (NYSE: DK) shares tumbled 3.47 percent to $30.02 after the company priced 9.2 million shares of its common stock at $30.00 per share.

SFX Entertainment (NASDAQ: SFXE) was down, falling 16.76 percent to $5.71 after the company reported a Q1 loss of $0.73 per share.

Commodities
In commodity news, oil traded down 0.31 percent to $102.05, while gold traded down 0.83 percent to $1,295.00.

Silver traded down 1.24 percent Thursday to $19.53, while copper fell 0.02 percent to $3.16.

Eurozone
European shares were lower today.

The eurozone's STOXX 600 declined 0.19 percent, the Spanish Ibex Index fell 1.02 percent, while Italy's FTSE MIB Index dropped 1.98 percent.

Meanwhile, the German DAX declined 0.11 percent and the French CAC 40 tumbled 0.35 percent while UK shares fell 0.08 percent.

Economics
The Empire State manufacturing index rise to 19.01 in May, versus a prior reading of 1.29. However, economists were expecting a reading of 6.00.

US jobless claims declined 24,000 to 297,000 in the week ended May 10. However, economists were expecting claims to total 320,000.

The consumer price index rose 0.3% in April, while core consumer prices jumped 0.2%. However, economists were expecting the CPI to rise by 0.3%.

Industrial production declined 0.6% in April, versus economists' expectations for a 0.1% gain.

The general conditions index of the Philadelphia Fed's Survey fell to 15.40 in May, versus a prior reading of 16.60. However, economists were expecting a reading of 15.00.

The NAHB housing market index fell 45.00 in May, versus economists' estimates of 49.00.

The Treasury is set to auction 3-and 6-month bills.

Data on money supply will be released at 4:30 p.m. ET.

Posted-In: Earnings News Guidance Eurozone Futures Forex Global Econ #s

 

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