Mid-Morning Market Update: Markets Down; J.C. Penney Results Beat Estimates

Following the market opening Friday, the Dow traded down 0.10 percent to 16,430.02 while the NASDAQ declined 0.32 percent to 4,056.35. The S&P also fell, dropping 0.18 percent to 1,867.55.

Leading and Lagging Sectors
In trading on Friday, telecommunications services shares were relative leaders, up on the day by about 0.56 percent. Meanwhile, top gainers in the sector included TW Telecom TWTC, up 3.1 percent, and PT Telekomunikasi Indonesia Tbk TLK, up 4 percent. Basic materials shares fell about0.63 percent in trading on Friday.

Top losers in the sector included Cliffs Natural Resources CLF, down 3.5 percent, and Thompson Creek Metals Company TC, off 2 percent.

Top Headline
On Thursday, J.C. Penney JCP reported stronger-than-expected first-quarter results. J.C. Penney's same-store sales also surged 6.2% in the quarter. J.C. Penney posted a quarterly loss of $352 million, or $1.15 per share. However, analysts were expecting a loss of $1.25 per share. Its revenue climbed to $2.8 billion, beating analysts' estimates of $2.71 billion.

Equities Trading UP
Rackspace Hosting RAX shares shot up 19.82 percent to $36.76 on confirmation of approach by potential buyers and partners.

Shares of J. C. Penney Company JCP got a boost, shooting up 16.49 percent to $9.75 after the company reported stronger-than-expected first-quarter results. J.C. Penney's same-store sales also surged 6.2% in the quarter.

Nordstrom JWN shares were also up, gaining 8.96 percent to $67.00 as the company reported upbeat first-quarter results. Nordstrom posted a quarterly profit of $0.72 per share on revenue of $2.93 billion. However, analysts were expecting a profit of $0.68 per share on revenue of $2.86 billion. Analysts at Credit Suisse upgraded Nordstrom from Neutral to Outperform.

Equities Trading DOWN
Shares of World Wrestling Entertainment WWE were 42.30 percent to $11.50 following announcement of NBCUniveral deal on Thursday. Benchmark downgraded WWE from Buy to Hold. Just Energy Group JE shares tumbled 8.59 percent to $6.60 on Q1 results.

Just Energy reported its Q1 earnings of $1.06 per share on revenue of $3.61 billion.

Canadian Solar CSIQ was down, falling 9.12 percent to $23.01 after the company reported weaker-than-expected Q1 earnings and issued a weak forecast.

Commodities
In commodity news, oil traded up 0.09 percent to $101.59, while gold traded down 0.18 percent to $1,291.30.

Silver traded down 0.79 percent Friday to $19.33, while copper rose 0.19 percent to $3.15.

Eurozone
European shares were mixed today.

The eurozone's STOXX 600 gained 0.04 percent, the Spanish Ibex Index rose 0.90 percent, while Italy's FTSE MIB Index surged 1.34 percent.

Meanwhile, the German DAX declined 0.07 percent and the French CAC 40 tumbled 1.18 percent while UK shares rose 0.05 percent.

Economics
US housing starts surged 13.2% to an annual rate of 1.07 million in April, versus a revised rate of 947,000 in March. However, economists were expecting a rate of 980,000 in April.

The preliminary reading of Reuter's/University of Michigan's consumer sentiment index fell to 81.80 in May, versus a prior reading of 84.10. However, economists were expecting a reading of 84.50.