Mid-Morning Market Update: Markets Open Higher; McCormick Profit Tops Estimates

Following the market opening Friday, the Dow traded up 0.49 percent to 18,232.21 while the NASDAQ climbed 0.24 percent to 5,282.04. The S&P also rose, gaining 0.34 percent to 2,158.54.

Leading and Lagging Sectors

Friday morning, non-cyclical consumer goods & services shares surged 0.78 percent.

In trading on Friday, telecommunications services shares slipped by 0.10 percent. Meanwhile, top losers in the sector included CalAmp Corp. CAMP, down 16 percent, and Telefonica S.A. (ADR) TEF, down 3 percent.

Top Headline

McCormick & Company, Incorporated MKC delivered better than expected EPS and inline revenue for the third quarter. The company boosted its full year adjusted EPS forecast and sees revenue at the upper end of earlier forecast.

The company reported net income of $127.7 million, or $1.00 per share, for the third quarter, up from $97.6 million, or $0.76 a share, in the year-ago quarter. On an adjusted basis too, net income advanced from $109.7 million to $131.1 million and EPS from $0.85 to $1.03. Street predicted an EPS of $0.94.

McCormick's net sales grew from $1.059 billion to $1.09 billion and came in line with the analysts' estimates.

Equities Trading UP

Aurinia Pharmaceuticals Inc AUPH shares shot up 26 percent to $3.32 as the company disclosed that voclosporin achieved primary and all pre-specific secondary endpoints in Phase IIb AURA-LV study for LN.

Shares of Lexmark International Inc LXK got a boost, shooting up 14 percent to $39.91 after the company disclosed that it has received clearance from the Committee on Foreign Investment in the United States to proceed with proposed buyout.

Senomyx Inc. SNMX shares were also up, gaining 10 percent to $4.36 after the company disclosed that it has extended its Sweet Taste Program collaboration agreement with PepsiCo, Inc. for three additional years.

Equities Trading DOWN

Threshold Pharmaceuticals, Inc. THLD shares dropped 46 percent to $0.640 after the company disclosed interim results from its Tarloxotinib program. The company announced that it will discontinue investment in its Tarloxotinib program and will focus on evofosfamide program and earlier-stage opportunities.

Shares of Delcath Systems, Inc. DCTH were down 25 percent to $2.58. Delcath priced its 425,000 share offering at $3 per share.

Vectrus Inc VEC was down, falling around 48 percent to $14.33 on news of the government rejecting the company's contract proposal to provide comprehensive support services for all US Army facilities in Kuwait.

Commodities

In commodity news, oil traded up 0.27 percent to $47.96 while gold traded up 0.41 percent to $1,331.40.

Silver traded up 2.59 percent Friday to $19.69, while copper rose 0.80 percent to $2.21.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 slipped 0.59 percent, the Spanish Ibex Index fell 1.39 percent, while Italy’s FTSE MIB Index declined 0.85 percent. Meanwhile the German DAX fell 0.50 percent, and the French CAC 40 dropped 1.01 percent while U.K. shares fell 0.51 percent.

Economics

U.S. consumer spending was flat for August, versus economists’ expectations for a 0.1 percent growth. Personal income rose 0.20 percent in the month, versus expectations for a 0.20 percent increase.

The Chicago PMI increased to 54.20 in September, versus a prior reading of 51.50. Economists expected a reading of 52.50 for the month.

The Baker Hughes North American rig count report for the latest week will be released at 1:00 p.m. ET.

Dallas Federal Reserve President Rob Kaplan is set to speak in Dallas at 1:00 p.m. ET.