Mid-Morning Market Update: Markets Edge Lower; Bank of America Earnings Beat Expectations

Following the market opening Wednesday, the Dow traded down 0.10% to 26996.43 while the NASDAQ fell 0.22% to 8130.40. The S&P also fell, dropping 0.08% to 2,993.34.

Leading and Lagging Sectors

Materials shares climbed 0.7% on Wednesday. Meanwhile, top gainers in the sector included Venator Materials PLC VNTR, up 5%, and Tronox Holdings plc TROX, up 5%.

In trading on Wednesday, information technology shares fell 0.8%.

Top Headline

Bank of America Corporation BAC reported better-than-expected Q3 results.

Bank of America reported third-quarter earnings of 56 cents per share, which beat the analyst consensus estimate of 51 cents. The company reported sales of $22.8 billion, versus expectations of $22.79 billion.


Equities Trading UP

Viveve Medical, Inc. VIVE shares shot up 78% to $6.75 after surging 16.21% on Tuesday.

Shares of Achillion Pharmaceuticals, Inc. ACHN surged 72% to $6.28. Alexion Pharma ALXN will buy Achillion Pharma for the initial value of $930 million, or $6.30 per share in cash plus added contingent considerations for total potential value of $8.30 per share.

Ideal Power Inc. IPWR was up, rising 62% to $3.6353.

Equities Trading DOWN

Workday, Inc. WDAY shares tumbled 12% to $159.73 following the company's Tuesday analyst day. Bernstein said the company's focus on innovation and R&D spending is a long-term positive but could pressure margins near term. Other firms lowered their price targets.

Shares of Natera, Inc. NTRA were down 10% to $35.28. Natera reported launch of $175 million common stock offering.

American Vanguard Corporation AVD was down, falling 10% to $13.85 after the company reported weak preliminary sales for the third quarter.

Commodities


In commodity news, oil traded up 0.1% to $52.87, while gold traded up 0.1% to $1,484.20.

Silver traded down 0.8% Wednesday to $17.24, while copper fell 1.5% to $2.574.

Euro zone

European shares were mixed today. The eurozone’s STOXX 600 fell 0.1%, the Spanish Ibex Index rose 0.1%, while Italy’s FTSE MIB Index climbed 0.3%. Meanwhile, the German DAX gained 0.3%, and the French CAC 40 slipped 0.1% while UK shares fell 0.1%

Economics

U.S. retail sales fell 0.3% for September, versus economists’ expectations for a 0.3% increase.

U.S. business inventories were unchanged for August, versus economists’ expectations for a 0.2% rise.

The NAHB housing market index rose to 71 in October, versus prior reading of 68. However, economists were expecting a reading of 68.

Dallas Federal Reserve Bank President Robert Kaplan will speak in Austin, Texas at 1:00 p.m. ET.

The Federal Open Market Committee will release its Beige Book report at 2:00 p.m. ET.

Federal Reserve Member of the Board of Governors Lael Brainard is set to speak in Washington, DC at 3:00 p.m. ET.

The Treasury International Capital report for August is schedule for release at 4:00 p.m. ET.