Mid-Morning Market Update: Markets Drop; JPMorgan Posts Lower Earnings

Following the market opening Wednesday, the Dow traded down 0.92 percent to 17,452.51 while the NASDAQ slipped 0.29 percent to 4,648.12. The S&P also fell, dropping 0.65 percent to 2,009.81.

Leading and Lagging Sectors

In trading on Wednesday, healthcare shares fell by just 0.18 percent. Meanwhile, top gainers in the sector included ZIOPHARM Oncology, Inc. (ZNA IOP), up 51 percent, and ZELTIQ Aesthetics, Inc. ZLTQ, up 5.9 percent.

Basic materials shares tumbled by 2.55 percent in the US market on Wednesday. Top losers in the sector included Teck Resources Limited TCK, down 10 percent, Freeport-McMoRan Inc. FCX, off 10 percent.

Top Headline

JPMorgan Chase & Co. JPM reported results for the fourth quarter.

The New York-based company posted quarterly net income of $4.9 billion, down from $5.3 billion, in the year-ago period. Earnings per share slipped to $1.19 from $1.30. The latest quarter earnings figure included $990 million in legal charge.

Its revenue declined 2% to $23.6 billion. However, analysts were expecting earnings of $1.31 per share on revenue of $23.64 billion.

Equities Trading UP

ZIOPHARM Oncology, Inc. ZIOP shares shot up 61.67 percent to $9.28 following announcement of licensing agreement with University of Texas MD Anderson Cancer Center.

Shares of GameStop Corp. GME got a boost, shooting up 12.27 percent to $36.79 after the company reported a 4.4% rise in its December same-store store sales and narrowed its same-store sales outlook. Total comparable store sales slipped 3.1%, comprised of -3.3% in the U.S. and -2.7% internationally.

Intrexon Corporation XON shares were also up, gaining 9.01 percent to $30.92 after the company announced licensing deal with ZIOPHARM, MD Anderson Cancer Center.

Equities Trading DOWN

Quantum Corporation QTM shares tumbled 10.29 percent to $1.57. Quantum reported preliminary Q3 EPS of $0.04 on sales of $142.0 million.

Shares of Freeport-McMoRan Inc. FCX were down 10.15 percent to $18.91. Copper futures dipped 5.01% to trade at $2.51.

Progress Software Corporation PRGS was down, falling 8.48 percent to $24.16 after the company reported financial results for its fiscal fourth quarter and issued a weak earnings guidance.

Commodities

In commodity news, oil traded up 1.33 percent to $46.50, while gold traded up 0.29 percent to $1,238.00.

Silver traded down 1.14 percent Wednesday to $16.96, while copper fell 5.01 percent to $2.51.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 tumbled 1.34 percent, the Spanish Ibex Index slipped 1.04 percent, while Italy’s FTSE MIB Index dipped 1.29 percent. Meanwhile, the German DAX fell 1.21 percent, and the French CAC 40 declined 1.39 percent while UK shares dropped 2.44 percent.

Economics

The MBA reported that its index of mortgage application activity climbed 49.10% in the week ended January 9, 2015.

U.S. retail sales declined 0.9% in December, versus economists’ expectations for a 0.1% drop.

US import prices slipped 2.5% in December, versus economists’ expectations for a 2.9% drop. Export prices fell 1.2% in December.

US business inventories rose 0.20% in November, versus economists’ expectations for a 0.30% gain.

The Federal Reserve will release its latest Beige Book report at 2:00 p.m. ET.