Mid-Afternoon Market Update: Dow Drops 125 Points; Cliffs Natural Resources Shares Spike Higher

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Toward the end of trading Tuesday, the Dow traded down 0.71 percent to 17,746.80 while the NASDAQ declined 0.06 percent to 4,930.43. The S&P also fell, dropping 0.39 percent to 2,090.91.
Leading and Lagging Sectors
Tuesday afternoon, the utilities sector proved to be a source of strength for the market. Leading the sector was strength from
Westar Energy Inc WR
and
Huaneng Power International Inc (ADR) HNP
. In trading on Tuesday, financial shares fell by 0.27 percent. Meanwhile, top losers in the sector included
TAL International Group, Inc.TAL
, down 6 percent, and
Banco Bradesco SA (ADR)BBD
, down 6 percent.
Top HeadlineMedtronic PLCMDT
reported stronger-than-expected results for the fourth quarter on Tuesday. Medtronic reported net income of $1.1 billion or $0.78 a share for the fourth quarter compared to a net loss of $1 million or break-even per share in the year-ago quarter. On a non-GAAP basis, its net income would have increased 7 percent to $1.8 billion and earnings by 9 percent to $1.27 a share in the most recent quarter. Street analysts expected the company to report earnings of $1.26 a share. The company's revenue advanced 4 percent to $7.6 billion from $7.3 billion in the previous year quarter. This is also above the Street analysts' predictions of $7.49 billion. Medtronic expects adjusted earnings to be between $4.60 and $4.70 per share for the fiscal year 2017 including an expected $0.20 to $0.25 unfavorable foreign currency impact based on current exchange rates. Street analysts expect the company deliver earnings of $4.70 a share.
Equities Trading UP Celator Pharmaceuticals IncCPXX
shares shot up 71 percent to $30.00 as
Jazz Pharmaceuticals plcJAZZ
announced plans to acquire the company for $30.25 per share in cash. Shares of
Cliffs Natural Resources IncCLF
got a boost, shooting up 37 percent to $4.22 after
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ArcelorMittal SA (ADR) MT
announced a new supply deal with Cliffs Natural Resources.
BOS Better OnLine Sol (USA)BOSC
shares were also up, gaining 109 percent to $4.54. B.O.S. Better Online Solutions posted a Q1 net profit of $220,000, versus a year-ago net loss of $23,000. Its revenue climbed 38 percent to around $8.1 million.
Equities Trading DOWN StemCells IncSTEM
shares dropped 82 percent to $0.55 as the company reported the termination of Phase II pathway study following review of data. Shares of
Coca-Cola Enterprises IncCCE
were down 24 percent to $39.01 following the completion of a three-way merger between Coca-Cola Enterprises, Inc., Coca-Cola Iberian Partners S.A.U. and Coca-Cola Erfrischungsgetränke GmbH. Goldman Sachs initiated coverage of Coca-Cola Enterprises with a Buy rating and price target of $46.
American Superconductor CorporationAMSC
was down, falling around 7 percent to $9.74. American Superconductor reported a narrower-than-expected loss for its fourth quarter, but issued a weak outlook for the current quarter.
Commodities
In commodity news, oil traded down 0.04 percent to $49.31 while gold traded up 0.17 percent to $1,218.80. Silver traded down 1.78 percent Tuesday to $15.98, while copper fell 1.40 percent to $2.08.
Eurozone
European shares closed lower today. The eurozone's STOXX 600 slipped 0.77 percent, the Spanish Ibex Index fell 0.91 percent, while Italy's FTSE MIB Index declined 1.45 percent. Meanwhile the German DAX dropped 0.68 percent, and the French CAC 40 declined 0.53 percent, while U.K. shares fell 0.64 percent.
Economics
U.S. consumer spending increased 1 percent in April, versus economists' expectations for a 0.7 percent growth. Personal income rose 0.4 percent in April. The S&P/Case-Shiller home price index rose 0.9 percent in March, versus economists' estimates for a 0.7 percent increase. The Chicago PMI fell to 49.30 for May, versus a prior reading of 50.40. However, economists were expecting a reading of 50.90. The Conference Board's consumer sentiment index declined to a reading of 92.60 for May, versus a previous reading of 94.20. However, economists were projecting a reading of 96.00.
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Posted In: EarningsNewsGuidanceEurozoneCommoditiesM&AGlobalIntraday UpdateMarketsMoversMid-Afternoon Market Update
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