Mid-Morning Market Update: Markets Open Lower; Booz Allen Profit Misses Estimates

Following the market opening Monday, the Dow traded down 0.64 percent to 19,964.84 while the NASDAQ declined 1.18 percent to 5,594.25. The S&P also fell, dropping 0.79 percent to 2,276.45.

Leading and Lagging Sectors

Utilities shares slipped by just 0.1 percent in trading on Monday. Meanwhile, top gainers in the sector included NextEra Energy Inc NEE, and Duke Energy Corp DUK.

In trading on Monday, energy shares slipped by 1.4 percent. Meanwhile, top losers in the sector included Tidewater Inc. TDW, down 10 percent, and Willbros Group Inc WG, down 8 percent.

Top Headline

Booz Allen Hamilton Holding Corporation BAH reported weaker-than-expected earnings for its third quarter.

Booz Allen reported Q3 adjusted earnings of $0.38 per share on revenue of $1.4 billion. Analysts were expecting earnings of $0.40 per share on revenue of $1.37 billion.

Booz Allen also raised its quarterly dividend from $0.15 per share to $0.17 per share.

Equities Trading UP

Calithera Biosciences Inc CALA shares shot up 38 percent to $6.35. Incyte Corporation INCY and Calithera Biosciences reported a global collaboration for the development and commercialization of CB-1158.

Shares of Eyegate Pharmaceuticals Inc EYEG got a boost, shooting up 15 percent to $1.87 after the company reported positive top-line data from first-in-human pilot trial of Ocular Bandage Gel in corneal epithelial defects.

DHT Holdings Inc DHT shares were also up, gaining 10 percent to $4.67 after receiving a $5.09 per share all-stock offer from Frontline Ltd FRO.

Equities Trading DOWN

Ocera Therapeutics Inc OCRX shares dropped 63 percent to $0.750 after the company reported top-line results for Phase 2b study in Hepatic Encephalopathy.

Shares of Regulus Therapeutics Inc RGLS were down around 47 percent to $1.18 after the company received a written communication from the U.S. Food and Drug Administration that the clinical development for the company's RG-101 remains on clinical hold.

Tempur Sealy International Inc TPX was down, falling around 28 percent to $45.62 following announcement of termination of Mattress Firm MFRM contracts.

Commodities

In commodity news, oil traded down 0.11 percent to $53.11 while gold traded up 0.35 percent to $1,195.30.

Silver traded up 0.55 percent Monday to $17.23, while copper fell 0.46 percent to $2.68.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 dropped 0.54 percent, the Spanish Ibex Index fell 0.99 percent, while Italy’s FTSE MIB Index declined 1.83 percent. Meanwhile the German DAX slipped 0.65 percent, and the French CAC 40 declined 0.77 percent while U.K. shares fell 0.82 percent.

Economics

U.S. consumer spending rose 0.5 percent for December, matching economists’ expectations for a 0.5 percent growth. Personal income increased 0.30 percent last month, versus estimates of 0.40 percent gain.

The pending home sales index rose 1.6 percent to 109 in December. Economists were expecting a 1.1 percent growth.

The Dallas Fed manufacturing index for January will be released at 10:30 a.m. ET.

The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.