Mid-Morning Market Update: Markets Open Higher; Wells Fargo Earnings Meet Estimates

Following the market opening Friday, the Dow traded up 0.16 percent to 18,535.52 while the NASDAQ gained 0.06 percent to 5,037.06. The S&P also rose, gaining 0.11 percent to 2,166.19.

Leading and Lagging Sectors

On Friday, healthcare shares surged by 0.41 percent. Top gainers in the sector included Herbalife Ltd. and Alere Inc. .

In trading on Friday, technology shares fell by 0.30 percent. Meanwhile, top losers in the sector included Infosys Ltd ADR, down 8 percent, and Changyou.Com Ltd (ADR) CYOU, down 4 percent.

Top Headline

Wells Fargo & Co. WFC reported in-line earnings for the second quarter on Friday.

The company said it earned $5.6 billion or $1.03 a share for the second quarter compared to $5.7 billion or $1.03 a share in the year-ago quarter. Analysts too expected the same EPS.

Wells Fargo's top line advanced 4 percent to $22.2 billion from $21.3 billion in the previous year quarter. Street estimated the bank to generate $22.17 billion revenue. While net interest income increased $66 million to $11.7 billion from first quarter 2016, Noninterest income slipped to $10.4 billion from $10.5 billion in first quarter 2016.

Equities Trading UP

Herbalife Ltd. HLF shares shot up 19 percent to $70.41 following media reports the company was cleared by the U.S. Federal Trade Commission of allegations it was operating as a pyramid scheme.

Shares of Iteris Inc ITI got a boost, shooting up 13 percent to $3.54 after the company reported strong preliminary revenue results for the first quarter.

Alere Inc ALR shares were also up, gaining 8 percent to $42.58. Alere reported preliminary FY15 sales of $2.447 billion to $2.477 billion and expected Q4 sales of $573 million to $593 million. Canaccord Genuity upgraded Alere from Hold to Buy.

Equities Trading DOWN

Infosys Ltd ADR INFY shares dropped 8 percent to $17.00 after the company posted weak quarterly results.

Shares of CytRx Corporation CYTR were down 34 percent to $0.590. CytRx reported that it has priced its 28.6 million share offering at $0.70 per share.

ZIOPHARM Oncology Inc. ZIOP was down, falling around 11 percent to $5.03 following a concerning Adam Feuerstein tweet on the company offering. Adam Feuerstein reported a brain tumor patient death following ZIOPHARM’s gene therapy injection.

Commodities

In commodity news, oil traded up 0.46 percent to $45.89 while gold traded down 0.56 percent to $1,324.70.

Silver traded down 0.97 percent Friday to $20.13, while copper rose 0.29 percent to $2.25.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 fell 0.12 percent, the Spanish Ibex Index rose 0.13 percent, while Italy’s FTSE MIB Index dropped 0.14 percent. Meanwhile the German DAX slipped 0.09 percent, and the French CAC 40 declined 0.29 percent, while U.K. shares fell 0.07 percent.

Economics

U.S. retail sales gained 0.6 percent for June. However, economists were projecting a 0.1 percent growth.

U.S. consumer prices increased 0.2 percent in June, versus economists’ expectations for a 0.2 percent gain.

The Empire State manufacturing index dropped to 0.6 in July, versus 6.0 in June.

U.S. industrial production increased 0.6 percent for June, versus economists’ expectations for a 0.5 percent growth.

U.S. business inventories rose 0.20 percent for May, versus economists’ estimates for a 0.10 percent growth.

The University of Michigan's consumer sentiment index slipped to 89.50 in July, versus a prior reading of 93.50. However, economists were estimating a reading of 93.50.

San Francisco Federal Reserve Bank President John Williams is set to speak in Cambridge Mass at 1:00 p.m. ET.

Minneapolis Federal Reserve Bank President Neel Kashkari is set to speak in St. Louis at 1:15 p.m. ET.