Market Overview

Mid-Day Market Update: magicJack Surges On Acquisition News; Meet Group Shares Decline

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Midway through trading Thursday, the Dow traded down 0.39 percent to 23,471.63 while the NASDAQ declined 0.59 percent to 6,748.87. The S&P also fell, dropping 0.41 percent to 2,583.83.

Leading and Lagging Sectors

On Thursday, the telecommunications services shares climbed by 0.22 percent. Meanwhile, top gainers in the sector included NQ Mobile Inc (ADR) (NYSE: NQ), up 11 percent, and Telephone & Data Systems, Inc. (NYSE: TDS), up 4 percent.

In trading on Thursday, basic materials shares fell 0.93 percent. Meanwhile, top losers in the sector included Pan American Silver Corp. (USA) (NASDAQ: PAAS), down 9 percent, and Aluminum Corp. of China Limited (ADR) (NYSE: ACH) down 4 percent.

Top Headline

Macy's Inc (NYSE: M) reported better-than-expected earnings for its third quarter.

Humana posted quarterly EPS of $0.23 per share on revenue of $5.281 billion. However, analysts were expecting earnings of $0.19 per share on revenue of $5.31 billion. Sales at its stores open more than 12 months declined 3.6 percent.

Macy's raised its FY17 adjusted earnings outlook from $3.37-$3.62 per share to $3.38-$3.63 per share.

Equities Trading UP

Otonomy Inc (NASDAQ: OTIC) shares shot up 100 percent to $5.60 after the company announced an encouraging update to a phase 2 trial and reported a narrower-than-expected Q3 loss. Otonomy announced that its AVERTS-2 trial in patients with Meniere's Disease achieved its primary endpoint. The company's therapy called OTIVIDEX demonstrated clinically significant treatment benefit for patients.

Shares of magicJack VocalTec Ltd (NASDAQ: CALL) got a boost, shooting up 48 percent to $8.35. B. Riley Financial Inc (NASDAQ: RILY) announced plans to acquire magicJack VocalTec for $8.71 per share.

Roku Inc (NASDAQ: ROKU) shares were also up, gaining 47 percent to $27.74 after the company reported stronger-than-expected results for its third quarter in its first quarterly report as a public company. The company also announced fourth quarter guidance sales guidance of $175 million-$190 million, above consensus estimates of $177 million.

Equities Trading DOWN

Willbros Group Inc (NYSE: WG) shares dropped 46 percent to $1.50 after the company posted a Q3 loss of $0.52 per share on revenue of $240.77 million.

Shares of Vista Outdoor Inc (NYSE: VSTO) were down 30 percent to $12.87 after the company reported downbeat Q3 sales and lowered its outlook.

Meet Group Inc (NASDAQ: MEET) was down, falling around 31 percent to $2.39. Meet Group reported Q3 adjusted earnings of $0.11 per share on revenue of $32.2 million and issued a weak Q4 sales forecast. Canaccord Genuity downgraded Meet Group from Buy to Hold.

Commodities

In commodity news, oil traded up 0.95 percent to $57.35 while gold traded up 0.03 percent to $1,284.10.

Silver traded down 1.07 percent Thursday to $16.955, while copper fell 0.47 percent to $3.085.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 declined 1.04 percent, the Spanish Ibex Index fell 0.90 percent, while Italy’s FTSE MIB Index slipped 0.82 percent. Meanwhile the German DAX declined 1.25 percent, and the French CAC 40 dropped 1.05 percent while U.K. shares fell 0.52 percent.

Economics

Initial jobless claims climbed 10,000 to 239,000 in the week ended November 4. However, economists were expecting claims to reach 231,000 last week.

U.S. wholesale inventories rose 0.30 percent for September, versus economists’ expectations for a 0.30 percent growth.

Domestic supplies of natural gas climbed 15 billion cubic feet for the week ended November 3, the U.S. Energy Information Administration reported. Analysts estimated a gain of 15 billion cubic feet.

The Treasury is set to auction 30-year bonds at 1:00 p.m. ET.

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

Posted-In: Mid-Day Market UpdateNews Eurozone Commodities Global Intraday Update Markets

 

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