Mid-Afternoon Market Update: US Stocks Slip; Cree Shares Tumble Following News of LED Products Unit Restructuring

Toward the end of trading Thursday, the Dow traded down 0.19 percent to 17,931.80 while the NASDAQ slipped 0.04 percent to 5,120.37. The S&P also fell, dropping 0.07 percent to 2,107.02.

Leading and Lagging Sectors
Telecommunications services shares rose by 0.44 percent on Thursday. Meanwhile, top gainers in the sector included Partner Communications Company Ltd (ADR) PTNR, up 18 percent, and Cellcom Israel Ltd. CEL, up 7 percent.
In trading on Thursday, energy shares slipped by 0.90 percent. Meanwhile, top losers in the sector included Pacific Drilling SA PACD, down 9 percent, and Teekay Tankers Ltd. TNK, off 7 percent.

Top Headline
Accenture Plc ACN reported stronger-than-expected results for its fiscal third quarter and lifted its forecast for the full year.
The Dublin, Ireland-based company posted a quarterly net profit of $840 million, or $1.24 per share, versus a year-ago profit of $868.9 million, or $1.26 per share. Excluding non-recurring items, the company’s adjusted earnings came in at $1.30 per share.
Its net revenue rose 0.4 percent year-over-year to $7.77 billion, while revenue climbed 10 percent in local currency. However, analysts were expecting earnings of $1.23 per share on revenue of $7.55 billion.
Equities Trading UP
Magnum Hunter Resources Corp MHR shares shot up 6 percent to $1.85. Capital One Financial upgraded Magnum Hunter Resources from Underweight to Equalweight.
Shares of Winnebago Industries, Inc. WGO got a boost, shooting up 7 percent to $22.20 after the company reported better-than-expected results for its fiscal third quarter.
IAC/InterActiveCorp IACI shares were also up, gaining 4 percent to $80.57 after the company confirmed its intent to pursue IPO of Match Group.

Equities Trading DOWN
Methode Electronics Inc. MEI shares tumbled 28 percent to $31.22 after the company reported results for the fourth quarter and issued a weak FY16 forecast.
Shares of World Acceptance Corp. WRLD were down 22 percent to $64.47. FBR Capital downgraded World Acceptance from Outperform to Market Perform.
Cree, Inc. CREE was down, falling 10 percent to $27.42 after the company announced its plans to restructure its LED products unit and also announced a $500 million buyback plan. The company also lowered its revenue outlook for the fourth quarter.

Commodities
In commodity news, oil traded down 0.96 percent to $59.69, while gold traded down 0.02 percent to $1,172.70.
Silver traded down 0.16 percent Thursday to $15.87, while copper fell 0.23 percent to $2.62.

Euro zone
European shares closed mixed today. The eurozone’s STOXX 600 slipped 0.23 percent, the Spanish Ibex Index dropped 0.12 percent, while Italy’s FTSE MIB Index rose 0.85 percent. Meanwhile, the German DAX rose 0.02 percent, and the French CAC 40 slipped 0.07 percent while UK shares slipped 0.54 percent.

Economics
US jobless claims benefits rose 3,000 to 271,000 in the week ended June 20. However, economists were projecting claims to reach 272,000.
US consumer spending rose 0.9 percent in May, while personal income increased 0.5 percent for the month. Economists were expecting a 0.7 percent gain in spending and a 0.5 percent growth in income.
US Markit services PMI slipped to 54.80 in June, versus a prior reading of 56.20. However, economists were expecting a reading of 56.70.
Supplies of natural gas increased 75 billion cubic feet for the week ended June 19, the U.S. Energy Information Administration reported. However, analysts were expecting a gain of 76 billion cubic feet to 80 billion cubic feet.
Data on money supply will be released at 4:30 p.m. ET.