Mid-Morning Market Update: Markets Mostly Lower; Macy's Earnings Top Estimates

Following the market opening Wednesday, the Dow traded down 0.32 percent to 25,450.43 while the NASDAQ climbed 0.18 percent to 7,748.60. The S&P also fell, dropping 0.11 percent to 2,831.36.

Leading and Lagging Sectors

Wednesday morning, the communication services shares rose by 0.4 percent. Meanwhile, top gainers in the sector included Discovery, Inc. DISCB up 25 percent, and Zillow Group, Inc. ZG up 5 percent.

In trading on Wednesday, financial shares fell 1 percent.

Top Headline

Macy's Inc M reported better-than-expected earnings in its first-quarter results.

Macy's said it earned 44 cents per share in the first quarter on revenue of $5.504 billion versus expectations of 33 cents per share and $5.52 billion. Comparable sales grew 0.6 percent on an owned basis and were higher by 0.7 percent on an owned plus licensed basis.

The company entered into a new $1.5 billion, five-year Credit Agreement that replaces a prior $1.5 billion facility which was set to expire in 2021. Macy's reaffirmed its prior 2019 annual guidance, including comparable sales of flat to +1 percent, EPS of $3.05-$3.25, $100 million of asset sale gains and annual tax rate of 23 percent.

Equities Trading UP

PDS Biotechnology Corporation PDSB shares got a boost, shooting up 33 percent to $8.18 after the company reported Q1 EPS increased 712.5 percent from last year..

Shares of Cellectar Biosciences, Inc. CLRB shot up 21 percent to $2.77 as the company disclosed that CLR 131 achieved 50 percent overall response rate in Cohort 6 of ongoing Phase 1 study in Relapsed or Refractory Multiple Myeloma.

Amdocs Limited DOX shares were also up, gaining 12 percent to $59.89 after the company reported better-than-expected Q2 EPS results.

Equities Trading DOWN

ImmunoGen, Inc. IMGN shares dropped 33 percent to $2.1001 after the company announced that the FDA recommended that the company conduct a new Phase 3 trial for its Mirvetuximab Soravtansine Monotherapy.

Shares of electroCore, Inc. ECOR were down 17 percent to $ 4.45 aftre reporting Q1 results.

Roan Resources, Inc. ROAN was down, falling around 14 percent to $4.4450 after the company posted downbeat Q1 earnings.

Commodities

In commodity news, oil traded down 1 percent to $61.19 while gold traded up 0.3 percent to $1,299.90.

Silver traded down 0.1 percent Wednesday to $14.81, while copper fell 0.1 percent to $2.722.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 declined 0.5 percent, the Spanish Ibex Index fell 0.5 percent, while Italy’s FTSE MIB Index fell 1.3 percent. Meanwhile the German DAX dropped 0.9 percent, and the French CAC 40 fell 0.6 percent while U.K. shares fell 0.1 percent.

Economics

U.S. retail sales fell 0.2 percent for April, versus economists’ expectations for a 0.2 percent increase.

The Empire State manufacturing index rose to 17.8 for May, versus April reading of 10.1. However, economists were expecting a reading of 8.2 in May.

Data on industrial production for April will be released at 9:15 a.m. ET.

U.S. business inventories were unchanged for March.

The NAHB housing market index rose to 66 for May, versus previous reading of 63. However, economists projected a reading of 64.

The Energy Information Administration’s weekly report on petroleum inventories will be released at 10:30 a.m. ET.

Richmond Federal Reserve Bank President Tom Barkin will speak in New York at 1:00 p.m. ET.

The Treasury International Capital report for March is schedule for release at 4:00 p.m. ET.