Mid-Morning Market Update: Markets Mixed; Walgreens Sales Miss Estimates

Following the market opening Thursday, the Dow traded down 0.05 percent to 19,931.51 while the NASDAQ climbed 0.21 percent to 5,488.29. The S&P also fell, dropping 0.06 percent to 2,269.32.

Leading and Lagging Sectors

Telecommunications services shares gained around 0.78 percent in trading on Thursday. Meanwhile, top gainers in the sector included PLDT Inc (ADR) PHI, and Internet Gold Golden Lines Ltd IGLD.

In trading on Thursday, utilities shares fell by 0.47 percent. Meanwhile, top losers in the sector included AES Corp AES, down 2 percent, and Sempra Energy SRE, down 2 percent.

Top Headline

Walgreens Boots Alliance Inc WBA reported better-than-expected earnings for its first quarter, but sales missed expectations.

Walgreens reported adjusted earnings of S1.10 per share on revenue of $28.5 billion. Analysts were expecting earnings of $1.09 per share on revenue of $29.2 billion.

Walgreens expects FY17 earnings of $4.90 to $5.20 per share, versus analysts’ estimates of $5.01 per share.

Equities Trading UP

EnteroMedics Inc ETRM shares shot up 96 percent to $4.10 after surging 11.17 percent on Wednesday. EnteroMedics disclosed that its vBloc® Neurometabolic Therapy is now available at MedStar Health in Maryland and Roper St. Francis in South Carolina.

Shares of CTI BioPharma Corp CTIC got a boost, shooting up 24 percent to $4.93 after the company reported the removal of full clinical hold on pacritinib.

Pieris Pharmaceuticals Inc PIRS shares were also up, gaining 25 percent to $1.83. Pieris Pharmaceuticals and Servier reported a broad collaboration in immuno-oncology.

Equities Trading DOWN

AEterna Zentaris Inc. (USA) AEZS shares dropped 32 percent to $2.47 after the company disclosed that Macrilen failed to achieve its objective in Phase 3 trial. The company is evaluating whether it will continue development of Macrilen.

Shares of Kohl's Corporation KSS were down around 18 percent to $42.57 after the company lowered its earnings forecast for fiscal 2016. Kohl’s comparable sales dropped 2.1 percent in November and December.

Castlight Health Inc CSLT was down, falling around 16 percent to $4.20. Castlight Health reported the purchase of Jiff, Inc. and named John Doyle as CEO of the combined company.

Commodities

In commodity news, oil traded up 0.98 percent to $53.78 while gold traded up 0.92 percent to $1,176.00.

Silver traded up 0.35 percent Thursday to $16.61, while copper fell 0.47 percent to $2.54.

Eurozone

European shares were mixed today. The eurozone’s STOXX 600 slipped 0.01 percent, the Spanish Ibex Index rose 0.22 percent, while Italy’s FTSE MIB Index gained 0.33 percent. Meanwhile the German DAX fell 0.08 percent, and the French CAC 40 declined 0.11 percent while U.K. shares rose 0.07 percent.

Economics

Private sector employers added 153,000 in December, ADP Inc. reported. However, economists were projecting a gain of 172,000 jobs.

Initial jobless claims declined by 28,000 to 235,000 in the recent week. However, economists were expecting claims to reach 260,000 in the week.

Markit's U.S. December services PMI edged down to 54.1 from 54.9 during November and the composite PMI slipped to 53.9 from 54.6.

The ISM non-manufacturing index came in unchanged at 57.20 for December, versus a prior reading of 57.20. Economists projected a reading of 56.60.

The Energy Information Administration’s weekly report on natural gas stocks is schedule for release at 10:30 a.m. ET.

The EIA’s weekly report on petroleum inventories will be released at 11:00 a.m. ET.

Data on money supply for the recent week will be released at 4:30 p.m. ET.