Mid-Morning Market Update: Markets Open Lower; TransDigm Group Beats Q2 Estimates

Following the market opening Tuesday, the Dow traded down 1.21 percent to 26119.20 while the NASDAQ declined 1.33 percent to 8,015.28. The S&P also fell, dropping 1.27 percent to 2,895.13.

Leading and Lagging Sectors

Tuesday morning, the utilities shares slipped by just 0.3 percent. Meanwhile, top gainers in the sector included Ormat Technologies, Inc. ORA up 3 percent, and Spark Energy Inc SPKE up 3 percent.

In trading on Tuesday, energy shares fell 1.5 percent.

Top Headline

TransDigm Group Incorporated TDG reported better-than-expected earnings for its second quarter and raised its FY19 guidance.

Earnings came in at $4.21 per share, beating estimates of $3.80 per share. Sales came in at $1.196 billion, beating estimates of $1.13 billion.

Transdigm Group raised its FY2019 EPS guidance from $16.42-17.1 to $16.47-17.15. The company also raised its FY2019 sales guidance from $4.145 billion-4.235 billion to $5.395 billion-5.485 billion.

Equities Trading UP

Bridgeline Digital Inc BLIN shares got a boost, shooting up 31 percent to $8.08 after the company announced a multi-year license renewal agreement with a global biopharmaceutical company to power its mission-critical websites.

Shares of Solaredge Technologies Inc SEDG shot up 20 percent to $52.56 after the company reported higher-than-expected Q1 EPS and sales results. The company also issued Q2 sales guidance.

Akoustis Technologies Inc. AKTS shares were also up, gaining 15 percent to $7.37 after the company announced its first pre-production order for its 5.6 GHZ XBAW WiFi RF filter.

Equities Trading DOWN

Catalyst Pharmaceuticals Inc CPRX shares dropped 40 percent to $3.68 after the FDA approved the company's competitor to its Firdapse drug.

Shares of Intersect ENT Inc XENT were down 24 percent to $25.28 after SVB Leerink downgraded the stock from Outperform to Market Perform and lowered the price target from $41 to $29 following the company report of worse-than-expected Q1 EPS. The company also cut FY19 sales guidance.

Nautilus, Inc. NLS was down, falling around 16 percent to $4.45 after the company reported worse-than-expected Q1 EPS and sales results.

Commodities

In commodity news, oil traded down 0.7 percent to $61.79 while gold traded down 0.3 percent to $1,279.70.

Silver traded down 0.7 percent Tuesday to $14.83, while copper fell 1.6 percent to $2.7855.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 fell 0.6 percent, the Spanish Ibex Index fell 0.3 percent, while Italy’s FTSE MIB Index gained 0.2 percent. Meanwhile the German DAX dropped 0.6 percent, and the French CAC 40 declined 0.7 percent while U.K. shares fell 1 percent.

Economics

The Johnson Redbook Retail Sales Index rose 1.3 percent during the first four weeks of April versus March.

U.S. job openings rose to 7.5 million in March, versus prior reading of 7.1 million, according to the Labor Department's JOLTS report.

The Treasury is set to auction 3-year notes bills at 1:00 p.m. ET.

Data on consumer credit for March will be released at 3:00 p.m. ET.