Mid-Morning Market Update: Markets Drop; FactSet Profit Meets Estimates

Following the market opening Tuesday, the Dow traded down 0.21 percent to 17,144.78 while the NASDAQ slipped 0.62 percent to 4,576.49. The S&P also fell, dropping 0.95 percent to 1,983.25.

Leading and Lagging Sectors

In trading on Tuesday, basic materials shares were relative leaders, up on the day by about 0.81 percent. Meanwhile, top gainers in the sector included Coeur Mining CDE, up 7.6 percent, and IAMGOLD IAG, up 6.4 percent.

Utilities sector was the top loser in the US market on Tuesday. Meanwhile, top decliners in the sector included Consolidated Water Co CWCO, down 7 percent, and Pampa Energia SA PAM, off 6.6 percent.

Top Headline

FactSet Research Systems FDS reported in-line earnings for the first quarter.

The Norwalk, Connecticut-based company posted quarterly net income of $55.9 million, up from $52.2 million, in the year-earlier period. Diluted earnings per share climbed to $1.32 from $1.19. Adjusted diluted EPS jumped 11.9% y/y.

Its revenue surged 8.8% to $242.7 million. However, analysts were expecting earnings of $1.32 per share on revenue of $241.44 million.
Equities Trading UP

Talisman Energy TLM shares shot up 47.46 percent to $7.55 following the announcement of Repsol deal.

Shares of Willbros Group WG got a boost, shooting up 23.57 percent to $4.95 after the company announced a new term loan facility with principal amount $270 million over 5 years.

Orange ORAN shares were also up, gaining 5.64 percent to $16.85 as BT Group PLC BT is in talks to acquire mobile operator EE.

Equities Trading DOWN

Navistar International NAV shares tumbled 9.81 percent to $31.61 after the company posted a loss in the fourth quarter.

Shares of Breitburn Energy Partners L.P. BBEP were down 1.87 percent to $6.82 after dropping 14.41% on Monday. Crude oil futures dipped 2.29% to trade at $54.63 a barrel.

Exact Sciences EXAS was down, falling 5.75 percent to $25.39 after the company priced 4 million shares at $25.75 per share.

Commodities

In commodity news, oil traded down 3.34 percent to $54.04, while gold traded up 0.17 percent to $1,209.70.

Silver traded down 1.41 percent Tuesday to $16.33, while copper fell 0.90 percent to $2.85.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 fell 0.41 percent, the Spanish Ibex Index slipped 1.02 percent, while Italy’s FTSE MIB Index slipped 0.02 percent. Meanwhile, the German DAX dipped 0.17 percent and the French CAC 40 dropped 0.74 percent while UK shares gained 0.45 percent.

Economics

The Federal Open Market Committee is scheduled to begin its 2-day policy meeting today.

The ICSC-Goldman Store Sales Index rose 3% in the week ended Saturday versus the earlier week.

US housing starts slipped 1.6% to an annual rate of 1.03 million in November. However, economists were estimating a starts rate of 1.04 million.

The Johnson Redbook Retail Sales Index declined 1.2% during the second week of December versus November.

The preliminary reading of US Markit manufacturing PMI slipped to 53.70 in December, versus a prior reading of 54.80. However, economists were expecting a reading of 55.40.

The Treasury is set to auction 4-week bills.