Mid-Morning Market Update: Markets Drop; Darden Adjusted Profit Beats Street View

Following the market opening Friday, the Dow traded down 0.30 percent to 16,997.36 while the NASDAQ declined 0.39 percent to 4,573.85. The S&P also fell, dropping 0.39 percent to 1,989.64.

Leading and Lagging Sectors

Cyclical consumer goods & services shares fell by just 0.13 percent in trading on Friday. Top gainers in the sector included ULTA Salon, Cosmetics & Fragrance NASDAQ: (ULTA), up 19.7 percent, and World Wrestling Entertainment WWE, up 3.2 percent.

In trading on Friday, energy shares were relative laggards, down on the day by about 0.85 percent. Meanwhile, top decliners in the sector included Petróleo Brasileiro S.A. PBR, down 4.3 percent, and Ultrapar Holdings UGP, off 3.8 percent.

Top Headline

Darden Restaurants DRI reported better-than-expected fiscal first quarter earnings.

The Orlando, Florida-based company reported a quarterly loss of $19.3 million, or $0.14 per share, versus a year-ago profit of $42.2 million, or $0.32 per share. Excluding non-recurring items, the company earned $0.32 per share.

Its sales surged to $1.6 billion versus $1.53 billion. However, analysts were expecting earnings of $0.30 per share on revenue of $1.6 billion.

Equities Trading UP

Conversant CNVR shares shot up 30.96 percent to $34.98 after Alliance Data Systems ADS announced its plans to buy Conversant for $35 per share.

Shares of ULTA Salon, Cosmetics & Fragrance ULTA got a boost, shooting up 19.63 percent to $116.62 after the company reported upbeat second-quarter results and raised its outlook.

Hertz Global Holdings HTZ shares were also up, gaining 2.07 percent to $28.33. Hertz Global averted a proxy contest with Carl C. Icahn for control of its board by agreeing in principle to name three directors approved by the activist investor.

Equities Trading DOWN

Shares of Ruckus Wireless RKUS were down 4.82 percent to $14.40. Buckingham Research downgraded Ruckus Wireless from Buy to Neutral and raised the price target from $15.00 to $16.00.

Health Care REIT HCN shares tumbled 3.32 percent to $64.29 after the company priced 15,500,000 shares of common stock at $63.75 per share.

Amarin Corporation plc AMRN was down, falling 20.44 percent to $1.44 following an update on ANCHOR trial SPA deal rescission appeal.

Commodities

In commodity news, oil traded up 0.23 percent to $93.04, while gold traded down 0.28 percent to $1,235.60.

Silver traded down 0.05 percent Friday to $18.59, while copper rose 0.05 percent to $3.09.

Euro zone

European shares were mixed today. The eurozone’s STOXX 600 rose 0.09 percent, the Spanish Ibex Index gained 0.01 percent, while Italy’s FTSE MIB Index slipped 0.09 percent. Meanwhile, the German DAX fell 0.32 percent and the French CAC 40 declined 0.09 percent while UK shares climbed 0.26 percent.

Economics

US retail sales rose 0.6% in August, versus economists’ expectations for a 0.6% gain.

US import price index fell 0.9% in August, versus economists’ expectations for a 1.0% decline.

The preliminary reading of Reuters/University of Michigan's consumer sentiment index rose to 84.60 in September, versus a prior reading of 82.50. However, economists were expecting a reading of 83.30.

US business inventories rose 0.40% in July, versus economists’ expectations for a 0.40% gain.