Mid-Morning Market Update: Markets Open Lower; Broadcom Cuts FY19 Outlook

Following the market opening Friday, the Dow traded down 0.2% to 26053.36 while the NASDAQ fell 0.51% to 7797.32. The S&P also fell, dropping 0.24% to 2,884.82.

Leading and Lagging Sectors

Utilities shares rose 0.7% on Friday. Meanwhile, top gainers in the sector included AquaVenture Holdings Limited WAAS, up 4%, and Spark Energy, Inc. SPKE, up 3%.

In trading on Friday, information technology shares fell by 1%.

Top Headline

Broadcom Inc AVGO reported upbeat earnings for its second quarter, while sales missed estimates. The company also cut its FY2019 sales guidance.

Second-quarter adjusted earnings came in at $5.21, beating estimates by 3 cents. Sales came in at $5.517 billion, missing estimates by $173 million. The company cut FY2019 sales guidance from $24.5 billion to $22.5 billion.

Equities Trading UP

Bionano Genomics, Inc. BNGO shares shot up 40% to $4.21.

Shares of ArQule, Inc. ARQL got a boost, shooting up 36% to $8.53 after the company announced clinical proof-of-concept data from its ongoing Phase 1 study of ARQ-531 in patients with relapsed/refractory Hematologic Malignancies.

Bluegreen Vacations Corporation BXG shares were also up, gaining 32% to $10.54 after the company entered into a settlement with Bass Pro to reinstate marketing activities; Stifel Nicolaus also upgraded the company's stock from Hold to Buy and raised its price target from $8 to $10.

Equities Trading DOWN

Seres Therapeutics, Inc. MCRB shares tumbled 25% to $2.1350 after the company announced a common stock offering of 26.66 million shares at $2.25 per share.

Shares of Ashford Hospitality Trust, Inc. AHT were down 16% to $3.6050. Ashford Hospitality Trust declared a quarterly cash dividend of $0.06 per diluted share.

SELLAS Life Sciences Group, Inc. SLS was down, falling 60% to $0.1498 after the company priced a 26.37 million share common stock offering at $0.15 per share.

Commodities

In commodity news, oil traded down 0.2% to $52.16, while gold traded up 1.1% to $1,358.40.

Silver traded up 1.1% Friday to $15.06, while copper fell 0.3% to $2.648.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 0.6%, the Spanish Ibex Index fell 0.6%, while Italy’s FTSE MIB Index slipped 0.3%. Meanwhile, the German DAX dropped 0.8%, and the French CAC 40 fell 0.4% while UK shares fell 0.6%.

Economics

U.S. retail sales increased 0.5% for May, versus economists’ expectations for a 0.7% gain.

U.S. industrial production rose 0.4% for May, versus economists’ expectations for a 0.2% gain.

The University of Michigan's consumer sentiment index declined to 97.9 in June, versus a reading of 100 in May. However, economists expected a 99 reading.

U.S. business inventories rose 0.5% for April, versus economists’ expectations for a 0.4% increase.