Mid-Morning Market Update: Markets Open Lower; Broadcom Profit Beats Expectations

Following the market opening Friday, the Dow traded down 0.52 percent to 17,745.14 while the NASDAQ declined 0.60 percent to 4,941.54. The S&P also fell, dropping 0.54 percent to 2,093.94. Leading and Lagging Sectors Friday morning, the basic materials sector proved to be a source of strength for the market. Leading the sector was strength from Gold Fields Limited (ADR) (NYSE: GFI) and Kinross Gold Corporation (USA) (NYSE: KGC). In trading on Friday, financial shares fell by 1.2 percent. Meanwhile, top losers in the sector included NewStar Financial Inc (NASDAQ: NEWS), down 7 percent, and E*TRADE Financial Corp (NASDAQ: ETFC), down 6 percent. Top Headline Broadcom Ltd (NASDAQ: AVGO) reported stronger-than-expected earnings for its second quarter on Thursday. The company also announced quarterly interim dividend of $0.50 per share. The tech company reported Q2 earnings of $2.53 per share, which came in well ahead of $2.38 estimates. Revenue of $3.54 billion was just a tick below estimates. The company sees Q3 revenue in a range of $3-$4.5 billion, vs. $3.7 billion estimates.Equities Trading UP The First Marblehead Corporation (NYSE: FMD) shares shot up 32 percent to $4.86 as the company agreed to be acquired by FP Resources USA for $5.05 per share.Shares of Coffee Holding Co., Inc. (NASDAQ: JVA) got a boost, shooting up 48 percent to $5.58. Coffee Holding reported quarterly earnings of $0.14 per share, versus a year-ago loss of $0.33 per share. Its revenue dropped 29.3 percent to $21.4 million. Talen Energy Corp (NYSE: TLN) shares were also up, gaining 16 percent to $13.89 as the company agreed to be bought by private investment firm, Riverstone Holdings LLC's affiliates for $14.00 per share.Equities Trading DOWN Immunomedics, Inc. (NASDAQ: IMMU) shares dropped 21 percent to $4.20 as the company issued an update on triple-negative breast cancer presentation at the the American Society of Clinical Oncology. Immunomedics said that triple-negative breast cancer presentation was cancelled following a complaint that the company violated the embargo. Shares of Zumiez Inc. (NASDAQ: ZUMZ) were down 6 percent to $14.15. Zumiez reported a narrower-than-expected loss for its first quarter, but issued a weak forecast for the current quarter. The company's comparable sales for the thirteen weeks ended April 30, 2016 dropped 7.5 percent, versus a 3.0 percent growth in the year-ago period. Warren Resources, Inc. (NASDAQ: WRES) was down, falling around 37 percent to $0.0600. Warren Resources filed for Chapter 11 bankruptcy. Commodities In commodity news, oil traded down 0.10 percent to $49.12 while gold traded up 1.76 percent to $1,233.90. Silver traded up 1.97 percent Friday to $16.34, while copper rose 2.95 percent to $2.13. Eurozone European shares were mostly higher today. The eurozone's STOXX 600 gained 0.60 percent, the Spanish Ibex Index fell 0.03 percent, while Italy's FTSE MIB Index rose 0.09 percent. Meanwhile the German DAX gained 0.55 percent, and the French CAC 40 climbed 0.53 percent, while U.K. shares rose 0.94 percent. Economics The U.S. economy added 38,000 new jobs in May, while the unemployment rate declined to 4.7 percent from 5 percent. However, economists were expecting an addition of 164,000 nonfarm jobs. The U.S. trade deficit increased 5.3 percent to $37 billion in April. U.S. imports gained 2.1 percent to $220.2 billion in April, while U.S. exports increased 1.5 percent to $182.8 billion.The Markit services PMI rose to 51.30 in May, versus a prior reading of 51.20. However, economists were projecting a reading of 51.20.U.S. factory orders rose 1.90 percent for April, versus economists' expectations for a 0.90 percent growth.The ISM non-manufacturing index declined to 52.90 in May, versus a previous reading of 55.70. However, economists estimated a reading of 55.50.