Mid-Morning Market Update: Markets Decline; Toll Brothers Posts Rise In Profit

Following the market opening Wednesday, the Dow traded down 0.27 percent to 16,631.12 while the NASDAQ tumbled 0.27 percent to 4,225.76. The S&P also fell, dropping 0.10 percent to 1,910.02.

In trading on Wednesday, telecommunications services shares were relative leaders, up on the day by about 0.17 percent. Meanwhile, top gainers in the sector included 8x8

, up 3.1 percent, and Telecom Italia S.p.A.

, up 3.7 percent. Cyclical consumer goods & services sector was the top loser in the US market on Wednesday. Top decliners in the sector included DSW

, down 25.5 percent, and America's Car-Mart

, off 8.8 percent.

Toll Brothers

in its fiscal second-quarter profit. Toll Brothers posted its quarterly profit of $65.2 million, or $0.35 per share, versus a year-ago profit of $24.7 million, or $0.14 per share. Its revenue climbed to $860.4 million versus $516 million. However, analysts were expecting earnings of $0.26 per share on revenue of $803 million. Homebuilding deliveries climbed 67% in dollars and 36% in units.

PetroLogistics LP

shares shot up 9.51 percent to $14.16 after Koch Industries announced its plans to buy PetroLogistics for $2.1 billion. Shares of Qihoo 360 Technology Co

got a boost, shooting up 6.18 percent to $95.54 after the company reported "strong" first quarter results. The company's second quarter guidance also exceeded analyst expectations. Magnum Hunter Resources

shares were also up, gaining 4.37 percent to $7.65 after the company raised $150 million in a private placement.

Shares of DSW

were 25.89 percent to $24.10 after the company reported

fiscal first-quarter results and lowered its full-year earnings forecast. 3D Systems

shares tumbled 7.70 percent to $52.28 after the company announced a secondary offering of 5.95 million shares. Daktronics

was down, falling 10.44 percent to $12.96 after the company reported Q4 earnings of $0.04 per share on revenue of $136.24 million.

In commodity news,

to $103.96, while gold traded up 0.06 percent to $1,266.50. Silver traded up 0.28 percent Wednesday to $19.12, while copper rose 0.13 percent to $3.18.

European shares

today. The eurozone's STOXX 600 fell 0.09 percent, the Spanish Ibex Index rose 0.19 percent, while Italy's FTSE MIB Index surged 0.76 percent. Meanwhile, the German DAX fell 0.05 percent and the French CAC 40 declined 0.06 percent while UK shares rose 0.13 percent.

The MBA reported that its index of mortgage application activity fell 1.20% in the week ended May 23. The ICSC-Goldman's same-store sales index dropped 1.2% in the week ended Saturday versus the prior week. The Johnson Redbook Retail Sales Index rose 0.7% in the first three weeks of May versus April. The Treasury is set to auction 4-and 52-week bills. The Treasury will also auction 5-year notes.