Market Overview

Mid-Afternoon Market Update: Markets Mixed as Zynga Tumbles on Morgan Stanley Downgrade

Mid-Afternoon Market Update: Markets Mixed as Zynga Tumbles on Morgan Stanley Downgrade

Toward the end of trading Friday, the Dow traded up 0.59 percent to 14,846.66 while the NASDAQ declined 0.13 percent to 3,360.44. The S&P rose, gaining 0.56 percent to 1,597.90.

Top Headline
Darden Restaurants (NYSE: DRI) reported a drop in its fourth-quarter profit. Darden's quarterly profit declined to $133.2 million, or $1.01 per share, versus $151.2 million, or $1.15 per share, in the year-ago period.

Its revenue climbed to $2.30 billion from $2.07 billion. However, analysts were projecting earnings of $1.04 per share on revenue of $2.27 billion.

Darden estimates 2014 diluted earnings per share to decline by 3% to 5%, while it expects sales to increase by 6% to 8%.

Equities Trading UP
Spreadtrum Communications (NASDAQ: SPRD) shot up 16.96 percent to $26.07 after the company received a buyout offer from a unit of Tsinghua Holdings Co for $28.50 in cash per ADS.

Shares of Rexnord (NYSE: RXN) got a boost, shooting up 6.80 percent to $17.27 after the company announced the pricing of public offering of common stock by selling stockholder.

OSI Systems (NASDAQ: OSIS) was also up, gaining 12.89 percent late in the afternoon after announcing a settlement of its case with the US Government.

Equities Trading DOWN
Shares of Oracle (NASDAQ: ORCL) were down 9.06 percent to $30.20 after the company reported downbeat fiscal fourth-quarter revenue.

Idenix (NASDAQ: IDIX) was also down, falling 33.11 percent to $3.4315 after the company announced that it was delaying the development of its Nucleotide Prodrug candidate.

Shares of Zynga (NASDAQ: ZNGA) tumbled 7.18 percent to $2.655 after Morgan Stanley downgraded the stock from “equal-weight” to “underweight.”

In commodity news, oil traded down 1.71 percent to $92.70, while gold traded up 0.67 percent to $1,294.50. Silver traded up 1.84 percent Friday to $20.07, while copper rose 1.14 percent to $3.10.

European shares were lower today. The current account for the eurozone for April declined less than expected to 19.5 billion euros from 25.9 billion euros vs. the expected 14.2 billion euros.

The Spanish Ibex Index fell 1.56 percent and the Italian FTSE MIB Index declined 1.89 percent. Meanwhile, the German DAX fell 1.76 percent and the French CAC 40 declined 1.11 percent while U.K. shares tumbled 0.70 percent.

The ECRI Weekly Leading Index declined to 130.3 in the recent week ended June 14, versus 131.2 the earlier week.

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


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