​Mid-Morning Market Update: Markets Edge Lower; Big Lots Profit Beats Estimates

Following the market opening Friday, the Dow traded down 0.13 percent to 16,676.46 while the NASDAQ declined 0.10 percent to 4,243.66. The S&P also fell, dropping 0.02 percent to 1,919.57.

Leading and Lagging Sectors

Cyclical consumer goods & services shares surged around 0.12 percent in trading on Friday. Top gainers in the sector included Big Lots BIG, Genesco GCO, and ANN ANN.

Basic materials sector was the top loser in trading on Friday. Top decliners in the sector included Rio Tinto plc RIO, down 3.5 percent, and Cliffs Natural Resources CLF, off 3.5 percent.

Top Headline

Big Lots BIG reported better-than-expected fiscal first-quarter earnings and lifted its forecast for the current fiscal year.

Big Lots posted a quarterly profit of $3.3 million, or $0.06 per share, versus a year-ago profit of $32.3 million, or $0.56 per share. Its earnings from continuing operations came in at $28.6 million, or $0.50 per share, compared to $37.1 million, or $0.64 per share. The company had expected earnings from continuing operations of $0.40 to $0.45 per share.

Its revenue climbed 1.1% to $1.28 billion. However, analysts were expecting earnings of $0.44 per share on revenue of $1.26 billion.

Equities Trading UP

OmniVision Technologies OVTI shares shot up 8.49 percent to $21.85 after the company reported better-than-expected fourth-quarter results and issued a strong Q1 outlook. Analysts at Northland Securities upgraded OmniVision from Market Perform to Outperform and lifted the target price from $21 to $28.

Shares of Big Lots BIG got a boost, shooting up 10.82 percent to $41.57 after the company reported better-than-expected fiscal first-quarter earnings and lifted its forecast for the current fiscal year.

Nimble Storage NMBL shares were also up, gaining 6.86 percent to $28.73 after the company reported narrower-than-expected first-quarter loss.

Equities Trading DOWN

Shares of Infoblox BLOX were 35.58 percent to $13.22 after the company reported that its CEO Robert Thomas is stepping down. The company also issued a downbeat forecast for the fiscal fourth quarter. Analysts at Deutsche Bank downgraded Infoblox from Buy to Hold and lowered the target price from $30 to $18.

Annie's BNNY shares tumbled 11.44 percent to $30.89 after the company posted disappointing Q4 earnings and issued a weak outlook for the current fiscal year.

Express EXPR was down, falling 11.96 percent to $12.00 after the company reported weaker-than-expected first-quarter earnings and lowered its full-year earnings guidance.

Commodities

In commodity news, oil traded down 0.74 percent to $102.81, while gold traded down 0.20 percent to $1,254.60.

Silver traded down 0.02 percent Friday to $19.01, while copper rose 0.35 percent to $3.16.

Euro zone

European shares were mostly lower today. The eurozone’s STOXX 600 fell 0.07 percent, the Spanish Ibex Index rose 0.49 percent, while Italy’s FTSE MIB Index surged 0.77 percent. Meanwhile, the German DAX fell 0.04 percent and the French CAC 40 declined 0.51 percent while UK shares fell 0.28 percent.

Economics

US consumer spending declined 0.1% in April, while personal income increased 0.3%. However, economists were expecting 0.2% gain in spending and 0.3% rise in income.

The Chicago PMI surged to 65.50 in May, versus a prior reading of 63.00. However, economists were expecting a reading of 61.00.

The final reading of Reuter's/University of Michigan's consumer sentiment index rose to 81.90 in May, versus a final April reading of 84.1. However, economists were expecting a final reading of 82.50 in May, versus a preliminary reading of 81.8.

Data on farm prices for May will be released at 3:00 p.m. ET.