Mid-Morning Market Update: Markets Open Lower; Kroger Profit Tops Views

Following the market opening Thursday, the Dow traded down 1.94 percent to 24,542.54 while the NASDAQ declined 1.59 percent to 7,044.65. The S&P also fell, dropping 1.83 percent to 2,651.48.

Leading and Lagging Sectors

Thursday morning, the real estate shares slipped by just 0.9 percent. Meanwhile, top gainers in the sector included National Storage Affiliates Trust NSA up 1 percent, and One Liberty Properties, Inc. OLP up 0.5 percent.

In trading on Thursday, energy shares fell 2.8 percent.

Top Headline

Kroger Co KR posted upbeat earnings for its third quarter, but lowered its full-year earnings forecast.

Kroger reported quarterly earnings of $0.48 per share on revenue of $27.672 billion. However, analysts expected earnings of $0.43 per share on sales of $27.69 billion.

Kroger now expects FY18 GAAP earnings of $ $3.80 to $3.95 per share, versus prior forecast of $3.88 to $4.03 per share. The company reaffirmed adjusted earnings forecast of $2 to $2.15 per share.

Equities Trading UP

Uxin Limited UXIN shares got a boost, shooting up 19 percent to $3.40 after the company disclosed a strategic partnership with Taobao to jointly establish online used car shopping mall on Taobao marketplace.

Shares of KLX Energy Services Holdings, Inc. KLXE shot up 15 percent to $22.69 after reporting Q3 results.

Del Frisco's Restaurant Group, Inc. DFRG shares were also up, gaining 13 percent to $7.66 after the company disclosed that its board unanimously adopted a shareholder rights plan. Activist investor Engaged Capital acquired a 10 percent stake in Del Frisco's.

Equities Trading DOWN

Conatus Pharmaceuticals Inc. CNAT shares dropped 48 percent to $2.3601 after the company disclosed that ENCORE-PH Phase 2b clinical trial in NASH cirrhosis did not meet primary endpoint.

Shares of G-III Apparel Group, Ltd. GIII were down 13 percent to $35.49. G-III Apparel posted upbeat Q3 earnings, while sales missed views.

Signet Jewelers Limited SIG was down, falling around 22 percent to $39.03. Signet posted upbeat Q3 results and narrowed its FY19 earnings guidance.

Commodities

In commodity news, oil traded down 3.76 percent to $50.90 while gold traded down 0.08 percent to $1,241.60.

Silver traded down 0.97 percent Thursday to $14.44, while copper fell 1.93 percent to $2.7205.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 fell 2.19 percent, the Spanish Ibex Index dropped 1.97 percent, while Italy’s FTSE MIB Index dipped 2.44 percent. Meanwhile the German DAX declined 2.47 percent, and the French CAC 40 slipped 2.35 percent while U.K. shares fell 2.44 percent.

Economics

U.S. private sector employers added 179,000 jobs for November, the ADP reported. However, economists were expecting a 196,000 gain.

The trade deficit increased 1.7 percent to $55.5 billion in October, versus a revised $54.6 billion gap in September. However, economists projected a $55.2 billion gap. Imports gained 0.2 percent to $266.5 billion, while exports fell 0.1 percent to $211 billion for October.

Initial jobless claims declined 5,000 to 231,000 in the latest week, the Labor Department reported. Economists expected a 226,000 reading.

U.S. productivity rose 2.3 percent in the third quarter, versus economists’ expectations for a 2.3 percent increase.

The Markit services PMI declined to 54.7 in November, versus economists’ estimates for a reading of 54.4.

U.S. factory orders fell 2.1 percent for October, versus economists’ expectations for a 1.9 percent drop.

The ISM's non-manufacturing index rose to 60.70 for November, versus previous reading of 60.30. Economists were expecting a reading of 59.20.

The Energy Information Administration’s weekly report on petroleum inventories in the U.S. will be released at 11:00 a.m. ET.

The Treasury is set to suction 4-and 8-week bills at 11:30 a.m. ET.

Atlanta Federal Reserve Bank President Raphael Bostic is set to speak in Atlanta, Georgia at 12:15 p.m. ET.

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

New York Federal Reserve Bank President John Williams will speak in New York at 6:30 p.m. ET.

Federal Reserve Bank Chairman Jerome Powell is set to speak in Washington, DC at 6:45 p.m. ET.