Market Overview

Mid-Morning Market Update: Markets Down, Dick's Earnings Miss Estimates

Mid-Morning Market Update: Markets Down, Dick's Earnings Miss Estimates
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Following the market opening Monday, the Dow traded down 0.11 percent to 14,381.79 while the NASDAQ fell 0.17 percent to 3,238.83. The S&P also fell, dropping 0.16 percent to 1,548.64.

Index Technicals:
The S&P looks set to stall at 1,552, with lower intraday support at 1,538.

The Dow also seems set to stall, stopping at 14,413 with lower support at 14,100 on its daily chart, while intra-day support looks to be set at 14,230.

The Russell looks to be stalling out as well, right around the 942.50 level as 930 acts as intraday support.

Finally, the NASDAQ seems to be set to lose momentum too, stalling at 3,250, with intraday support coming in at 3,215.

Top Headline
Dick's Sporting Goods (NYSE: DKS) reported downbeat fiscal fourth-quarter earnings.

For fiscal 2014, Dick's projects earnings of $2.84 to $2.86 per share on adjusted same-store sales growth of 2% to 3%. However, analysts expected a profit of $2.92 per share.

Dick's quarterly profit surged to $129.7 million, or $1.03 per share, from $111.1 million, or $0.88 per share, in the year-ago period. However, analysts were expecting a profit of $1.06 per share. Its revenue rose 12% to $1.81 billion, versus analysts' estimates of $1.86 billion.

Equities Trading UP
Genworth Financial (NYSE: GNW) shot up 6.96 percent to $10.53 following a positive article in Barron's this weekend which stated that the stock could double in the next year..

Shares of Zynga (NASDAQ: ZNGA) got a boost, shooting up 9.10 percent to $3.8950 after Facebook revamped its news feed tool.

MannKind (NASDAQ: MNKD)was also up, gaining 7.52 percent to $3.29.

Equities Trading DOWN
Dick's Sporting Goods (NYSE: DKS) shares tumbled 7.63 percent to $46.74 after the company reported downbeat Q4 results.

Blucora (NASDAQ: BCOR) was also down, falling 5.91 percent to $15.52 after the company announced proposed offering of $150,000,000 of convertible senior notes.

Shares of Liquidity Services (NASDAQ: LQDT) were down 5 percent to $30.41 after Jim Cramer advised investors to sell the stock.

In commodity news, oil traded down 0.36 percent to $91.62, while gold traded up 0.24 percent to $1,580.70.

Silver traded down 0.41 percent Monday to $28.83, while copper fell 0.39 percent to $3.50.

Euro zone
European shares were mostly lower following Fitch's late-day downgrade of Italy to BBB+ on Friday.Italy's economy shrank slightly more than expected in the fourth quarter, with GDP contracting 2.8 percent from the same period a year ago, slightly worse than the forecasted rate of 2.7 percent.

Germany's trade balance was reported as in line with forecasts overnight, however exports and imports both grew faster than expected, showing slight underlying strength of the German economy in the face of a broad European recession.

The Spanish Ibex Index tumbled 1.02 percent and the Italian FTSE MIB Index dropped 0.63 percent. The STOXX Europe 600 Index declined 0.20 percent, London's FTSE 100 Index rose 0.28 percent, French CAC 40 Index fell 0.29 percent and German DAX 30 index dropped 0.14 percent.

On the economics calendar Monday, the Treasury is expected to auction 3-month and 6-month bills. Overnight, German inflation, British industrial production, and Spanish and Italian bill auctions could move markets.

Posted-In: Earnings News Guidance Commodities Forex Global Econ #s Economics


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