Mid-Morning Market Update: Markets Open Higher; Citigroup Profit Tops Expectations

Following the market opening Friday, the Dow traded up 0.85 percent to 18,252.99 while the NASDAQ climbed 0.85 percent to 5,257.70. The S&P also rose, gaining 0.76 percent to 2,148.67.

Leading and Lagging Sectors

Friday morning, telecommunications services shares gained by 1.01 percent. Meanwhile, top gainers in the sector included China Unicom (Hong Kong) Limited (ADR) CHU, and China Telecom Corporation Limited (ADR) CHA.

In trading on Friday, healthcare shares rose by just 0.1 percent. Meanwhile, top losers in the sector included Haemonetics Corporation HAE, down 4 percent, and Senomyx Inc. SNMX, down 3 percent.

Top Headline

Citigroup Inc C delivered another EPS beat, making it seven quarters in a row of an EPS beat. Its revenue for the third quarter also came in above the expectations.

Citigroup revealed net income of $3.8 billion, or $1.24 a share, down from $4.3 billion, or $1.35 a share, in the year-ago quarter. Street analysts' estimate was $1.16 a share.

The bank's revenue also fell from $18.7 billion to $17.8 billion. However, this was more than the analysts' expectations of $17.34 billion.

Equities Trading UP

Skyline Corporation SKY shares shot up 9 percent to $12.99. Skyline reported Q1 earnings of $0.09 per share, versus a year-ago loss of $0.10 per share.

Shares of Enzo Biochem, Inc. ENZ got a boost, shooting up 7 percent to $5.44. Enzo Biochem reported Q4 non-GAAP earnings of $0.04 per share on revenue of $26.6 million.

Advanced Micro Devices, Inc. AMD shares were also up, gaining 9 percent to $7.07 following the announcement that the company has reached a deal with Alibaba Group Holding Ltd BABA to use AMD chips in its cloud service.

Equities Trading DOWN

Biocept Inc BIOC shares dropped 20 percent to $0.930. Biocept reported the pricing of $10 million offering of common stocks and warrants.

Shares of Ocean Power Technologies Inc OPTT were down 22 percent to $3.15. Ocean Power priced 2.4 million shares at $2.75 per share.

Taylor Devices, Inc. TAYD was down, falling around 22 percent to $15.45. Taylor Devices reported Q1 earnings of $0.06 per share on revenue of $5.76 million.

Commodities

In commodity news, oil traded down 0.31 percent to $50.69 while gold traded down 0.29 percent to $1,253.90.

Silver traded up 0.04 percent Friday to $17.47, while copper fell 0.07 percent to $2.12.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 gained 1.58 percent, the Spanish Ibex Index rose 1.98 percent, while Italy’s FTSE MIB Index surged 2.02 percent. Meanwhile the German DAX climbed 1.75 percent, and the French CAC 40 gained 1.92 percent while U.K. shares rose 1.02 percent.

Economics

The Producer Price Index rose 0.3 percent for September, versus economists’ estimates for a 0.2 percent growth

U.S. retail sales increased 0.6 percent in September, versus expectations for a 0.7 percent gain.

U.S. business inventories rose 0.20 percent for September, versus economists’ expectations for a 0.20 percent growth.

The University of Michigan's consumer sentiment index declined to 87.90 for October, versus a prior reading of 91.20. Economists expected a reading of 91.90.

Federal Reserve Bank of Cleveland President Loretta Mester is set to speak in Cleveland at 12:00 p.m. ET.

Federal Reserve Chairman Janet Yellen will speak at the Boston Fed's 60th Economic Conference, "The Elusive Recovery" at 12:30 p.m. ET.

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

The U.S. Treasury budget data for September will be released at 2:00 p.m. ET.