Mid-Day Market Update: Alliance One Rises After Q4 Results; Adesto Technologies Shares Slide

Midway through trading Thursday, the Dow traded down 0.43 percent to 21,282.13 while the NASDAQ declined 1.17 percent to 6,122.26. The S&P also fell, dropping 0.68 percent to 2,421.27.

Leading and Lagging Sectors

Utilities shares slipped by just 0.1 percent in the US market on Thursday. Top gainers in the sector included Oneok Partners LP OKS, Middlesex Water Company MSEX, and Artesian Resources Corporation ARTNA.

In trading on Thursday, basic materials shares fell by 1.61 percent. Meanwhile, top losers in the sector included Intrepid Potash, Inc. IPI, down 6 percent, and Nucor Corporation NUE, down 6 percent.

Top Headline

Kroger Co KR posted in-line earnings for its first quarter, but lowered its FY17 adjusted earnings outlook.

Kroger reported Q1 adjusted earnings of $0.58 per share on revenue of $36.3 billion. However, analysts were expecting earnings of $0.58 per share on sales of $35.77 billion.

Kroger now expects FY17 adjusted earnings of $2 to $2.05 per share, versus earlier forecast of $2.21 to $2.25 per share.

Equities Trading UP

Lakeland Industries, Inc. LAKE shares shot up 9 percent to $12.93 after the company reported strong Q1 results.

Shares of Castle Brands Inc ROX got a boost, shooting up 7 percent to $1.83. Castle Brands reported Q4 net income of $191,000 on sales of $22.6 million.

Alliance One International, Inc. AOI shares were also up, gaining 10 percent to $13.80. Alliance One reported a Q4 loss of $0.03 per share on sales of $609.691 million.

Equities Trading DOWN

Kroger Co KR shares dropped 16 percent to $25.30. Kroger posted in-line earnings for its first quarter, but lowered its FY17 adjusted earnings outlook.

Shares of Adesto Technologies Corp IOTS were down 11 percent to $4.25. Adesto Technologies priced 4.375 million shares at $4 per share.

Lantheus Holdings Inc LNTH was down, falling around 8 percent to $14.98. Lantheus reported a secondary offering by selling stockholders of 3 million shares og common stock.

Commodities

In commodity news, oil traded down 0.40 percent to $44.55 while gold traded down 1.55 percent to $1,256.10.

Silver traded down 2.54 percent Thursday to $16.70, while copper fell 0.37 percent to $2.564.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 slipped 0.70 percent, the Spanish Ibex Index fell 1.21 percent, while Italy’s FTSE MIB Index slipped 0.68 percent. Meanwhile the German DAX declined 1.19 percent, and the French CAC 40 dropped 0.96 percent while U.K. shares fell 1.02 percent.

Economics

U.S. initial jobless claims declined 8,000 to 237,000 for the latest week. However, economists were expecting claims to reach 242,000 in the week.

The Philadelphia Fed manufacturing index declined to 27.6 in June, versus a reading of 38.8 in May. Economists projected a reading of 24 for June.

The import price index dropped 0.3 percent in May, versus economists’ expectations for a 0.1percent decline Export prices slipped 0.70 percent for May, versus expectations for a 0.10 percent gain.
The Empire State manufacturing index rose to a reading of 19.8 for June, versus negative 1 in May. However, economists were expecting a reading of 4.

U.S. industrial production was flat for May, versus economists’ expectations for a 0.20 percent gain.

The NAHB housing market index declined to 67 in June, compared to May’s initial reading of 70. Economists expected a reading of 70 for June.

Domestic supplies of natural gas increased 78 billion cubic feet for the week ended June 9, the U.S. Energy Information Administration reported. However, analysts were expecting a gain of 86 billion cubic feet.

The Treasury International Capital data for April will be released at 4:00 p.m. ET.

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