Mid-Morning Market Update: Markets Open Higher; AutoNation Misses Q4 Expectations

Following the market opening Friday, the Dow traded up 0.44 percent to 25,963.38 while the NASDAQ climbed 0.45 percent to 7,492.96. The S&P also rose, gaining 0.34 percent to 2,784.33.

Leading and Lagging Sectors

Friday morning, the information technology shares rose 1 percent. Meanwhile, top gainers in the sector included Trade Desk Inc TTD up 28 percent, and Universal Display Corporation OLED up 16 percent.

In trading on Friday, consumer staples shares fell 0.5 percent.

Top Headline

AutoNation, Inc. AN reported weaker-than-expected results for its fourth quarter.

AutoNation said it earned $1.10 per share in the fourth quarter on revenue of $5.4 billion. However, analysts were expecting earnings of $1.15 per share and revenue of $5.63 billion. AutoNation named Carl Liebert as CEO and President.

 

Equities Trading UP

Extraction Oil & Gas, Inc. XOG shares got a boost, shooting up 22 percent to $4.6427 after the company reported strong Q4 results.

Shares of Achieve Life Sciences, Inc. ACHV shot up 131 percent to $4.1804 after the company disclosed final data from their Phase I/II multi-dose, pharmacokinetic and pharmacodynamics clinical study of cytisinicline in smokers. The company reported that no severe or serious adverse events from study of cytisinicline in smokers.

The Trade Desk, Inc. TTD shares were also up, gaining 28 percent to $191.99 after the company reported upbeat results for its fourth quarter. The company also announced better than expected Q1 and FY19 sales guidance.

Equities Trading DOWN

Stamps.com Inc. STMP shares dropped 57 percent to $84.45 on very weak guidance as the company ended an exclusive partnership with U.S. Postal Service.

Shares of Diplomat Pharmacy, Inc. DPLO were down 36 percent to $8.56 after the company reported postponement of Q4 earnings report to March 15, 2019. Diplomat said FY18 sales and adjusted EBITDA will not be impacted by impairment charges.

The Kraft Heinz Company KHC was down, falling around 27 percent to $35.02 in reaction to a concerning earnings report, dividend reduction and disclosure of a SEC investigation. Kraft Heinz said after the close Thursday that it earned 84 cents per share in the fourth quarter on revenue of $6.891 billion versus expectations of 94 cents and $6.94 billion. The company disclosed it received a subpoena in October from the SEC related to an investigation into the company's accounting policies, procedures and international controls.

Commodities

In commodity news, oil traded up 1.2 percent to $57.64 while gold traded up 0.22 percent to $1,330.70.

Silver traded up 0.25 percent Friday to $15.945, while copper rose 1.2 percent to $2.933.

 

Eurozone

European shares were higher today. The eurozone’s STOXX 600 rose 0.2 percent, the Spanish Ibex Index rose 0.1 percent, while Italy’s FTSE MIB Index climbed 0.3 percent. Meanwhile the German DAX gained 0.43 percent, and the French CAC 40 rose 0.3 percent while U.K. shares rose 0.4 percent.

Economics

San Francisco Federal Reserve Bank President Mary Daly is set to speak in New York City at 10:15 a.m. ET.

New York Federal Reserve Bank President John Williams will speak in New York, NY at 10:15 a.m. ET.

The Baker Hughes North American rig count report for the latest week is schedule for release at 1:00 p.m. ET.

St. Louis Federal Reserve Bank President James Bullard, US Federal Reserve Bank Vice Chairman Richard Clarida, St. Louis Federal Reserve Bank President James Bullard, Philadelphia Federal Reserve Bank Chairman Patrick Harker and New York Federal Reserve Bank President John Williams will speak in New York at 5:30 p.m. ET.