Mid-Morning Market Update: Markets Mostly Flat; Costco Posts Upbeat Earnings

Following the market opening Wednesday, the Dow traded up 0.03 percent to 16,724.66 while the NASDAQ declined 0.01 percent to 4,385.00. The S&P also fell, dropping 0.03 percent to 1,934.51.

Leading and Lagging Sectors

In trading on Wednesday, utilities shares were relative leaders, up on the day by about 0.33 percent. Top gainers in the sector included Companhia Energética de Minas Gerais CIG, up 2.6 percent, and CPFL Energia S.A. CPL, up 2 percent.

Energy shares fell by 0.48 percent on Wednesday. Top losers in the sector included Halcon Resources HK, down 5 percent, and Energy XXI (Bermuda) EXXI, off 4.2 percent.

Top Headline

Costco Wholesale COST reported stronger-than-expected earnings for the fourth quarter.

The Issaquah, Washington-based company posted quarterly net income of $697 million, or $1.58 per share, compared to $617 million, or $1.40 per share, in the year-ago period.

Its net sales gained 9% to $34.75 billion from $31.77 billion, while total revenue surged to $35.52 billion from $32.49 billion. However, analysts were expecting a profit of $1.52 per share on revenue of $35.47 billion.

Equities Trading UP

Blackhawk Network Holdings HAWK shares shot up 8.14 percent to $34.15 after the company reported upbeat Q3 results.

Shares of Chimerix CMRX got a boost, shooting up 7.04 percent to $35.57 on positive brincidofovir data.

Ligand Pharmaceuticals LGND shares were also up, gaining 3.71 percent to $44.50 after the company lifted its Q3 forecast.

Equities Trading DOWN

Shares of Interface TILE were down 17.57 percent to $13.04 after the company warned that Q3 results will fall well below expectations because of fewer orders and deferred deliveries.

Mistras Group MG shares tumbled 13.25 percent to $17.03 after the company reported weaker-than-expected quarterly earnings.

Aegion AEGN was down, falling 4.28 percent to $18.55. Analysts at Stifel Nicolaus downgraded Aegion from Buy to Hold and removed the price target of $27.

Commodities

In commodity news, oil traded down 1.31 percent to $87.69, while gold traded up 0.36 percent to $1,216.80.

Silver traded up 0.44 percent Wednesday to $17.32, while copper fell 0.07 percent to $3.04.

Euro zone

European shares were mostly lower today. The eurozone’s STOXX 600 fell 0.62 percent, the Spanish Ibex Index rose 0.01 percent, while Italy’s FTSE MIB Index declined 0.01 percent. Meanwhile, the German DAX slipped 0.67 percent and the French CAC 40 declined 0.49 percent while UK shares fell 0.23 percent.

Economics

The MBA reported that its index of mortgage application activity rose 3.80% in the week ended October 3.

The Federal Open Market Committee will issue minutes of its meeting at 2:00 p.m. ET.

The Treasury is set to auction 10-year notes.