Mid-Afternoon Market Update: Markets Turn Back as Meritor Hangs onto its Gains

Toward the end of trading Thursday, the Dow traded down 0.27 percent to 16,535.05 while the NASDAQ gained 0.03 percent to 4,115.42. The S&P also fell, dropping 0.16 percent to 1,880.73.

Healthcare shares surged around 0.49 percent in Thursday trading. Leading the sector was strength from Pacific Biosciences of California

and CytRx

. In trading on Thursday, non-cyclical consumer goods & services shares were relative laggards, down on the day by about 0.53 percent. Top losers in the sector includedAvon Products

, Lancaster Colony

, and Boston Beer Co

.

Viacom

reported a

in its second-quarter profit. Viacom's quarterly profit surged to $502 million, or $1.13 per share, versus a year-ago profit of $481 million, or $0.96 per share. Its adjusted earnings gained to $1.08 per share from $0.96 per share. Its revenue rose 1% to $3.17 billion compared to $3.14 billion. However, analysts were estimating earnings of $1.05 per share on revenue of $3.19 billion. Viacom also announced its plans to buy UK's Channel 5 Broadcasting Ltd for 450 million pounds ($760 million).

Merrimack Pharmaceuticals

shares shot up 58.54 percent to $6.96 after the company reported that MM-398 has

of overall survival in Phase 3 trial in post-gemcitabine metastatic pancreatic cancer. Shares of Weight Watchers International

got a boost, shooting up 17.55 percent to $23.26 after the company reported

results and raised its earnings forecast for the year. Meritor

was also up on Thursday's session, gaining 15.16 percent to $13.67 after the company's second quarter report impressed the street.

Shares of American Railcar Industries

were 14.78 percent to $59.22 after the company reported weaker-than-expected Q1 results. Emulex

was down as well, falling 30.49 percent to $4.97 after the company missed on revenues while guiding much lower for the fourth quarter. JDS Uniphase

was down, falling 16.34 percent to $10.60 after the company reported

and issued a weak Q4 forecast.

In commodity news,

to $99.48, while gold traded down 0.85 percent to $1,284.40. Silver traded down 0.76 percent Thursday to $19.06, while copper fell 1.56 percent to $3.02.

European shares

today. The eurozone's STOXX 600 gained 0.18 percent, The Spanish Ibex Index fell 0.02 percent, while Italy's FTSE MIB Index declined 0.88 percent. Meanwhile, the German DAX surged 0.20 percent and the French CAC 40 tumbled 0.23 percent while U.K. shares gained 0.43 percent.

Announced layoffs rose around 40,298 in April, versus 34,000 in March and compared to 38,000 in the year-ago month, outplacement consultancy Challenger, Gray & Christmas reported. US jobless claims increased 14,000 to 344,000, in the week ended April 26. However, economists were estimating claims to decline to 320,000 in the week. US consumer spending increased 0.9% in March, while personal income climbed 0.5%. However, economists were projecting a 0.4% rise in income and a 0.6% increase in spending. The final reading of Markit PMI manufacturing index came in at 55.40 in April, versus a prior reading of 55.40. However, economists were expecting a reading of 55.40. The ISM manufacturing composite index rose to 54.90 in April, versus economists' estimates for a reading of 54.30. US construction spending increased 0.20% in March, versus economists' expectations for a 0.50% growth. Supplies of natural gas climbed 82 billion cubic feet for the week ended April 25, the US Energy Information Administration said. However, analysts were expecting a gain of 73 billion cubic feet to 77 billion cubic feet. Data on money supply will be released at 4:30 p.m. ET.