Market Overview

Mid-Morning Market Update: Markets Tumble; Exxon Mobil Profit Beats Views

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Mid-Morning Market Update: Markets Tumble; Exxon Mobil Profit Beats Views

Following the market opening Monday, the Dow traded down 0.67 percent to 17,050.36 while the NASDAQ slipped 1.07 percent to 4,585.61. The S&P also fell, dropping 0.63 percent to 1,982.52.

Leading and Lagging Sectors

Monday morning, the energy sector proved to be a source of strength for the market. Leading the sector was strength from Frontline Ltd. (NYSE: FRO) and CGG (NYSE: CGG).

In trading on Monday, technology shares were relative laggards, down on the day by about 0.90 percent. Top losers in the sector included Pitney Bowes Inc. (NYSE: PBI), down 9.1 percent, Sonus Networks, Inc. (NASDAQ: SONS), off 9.1 percent.

Top Headline

Exxon Mobil Inc. (NYSE: XOM) reported stronger-than-expected earnings for the fourth quarter.

The Irving, Texas-based company posted quarterly earnings of $6.57 billion, or $1.56 per share, compared to $8.35 billion, or $1.91 per share, in the year-ago quarter.

Its revenue shrank to $87.28 billion from $110.86 billion. However, analysts were expecting a profit of $1.36 per share on revenue of $87.43 billion.

Equities Trading UP

1-800-Flowers.com Inc. (NASDAQ: FLWS) shares shot up 9.51 percent to $8.64 after the company reported higher earnings for the fiscal second quarter.

Shares of Tenneco Inc. (NYSE: TEN) got a boost, shooting up 5.50 percent to $54.25 after the company reported better-than-expected profit for the fourth quarter.

bluebird bio, Inc. (NASDAQ: BLUE) shares were also up, gaining 2.26 percent to $95.01 following announcement of the FDA Breakthrough Therapy Designation for LentiGlobin.

Equities Trading DOWN

Pitney Bowes Inc. (NYSE: PBI) shares tumbled 10.47 percent to $21.47 after the company reported Q4 earnings of $0.51 per share and announced a $100 million buyback.

Shares of FTI Consulting, Inc. (NYSE: FCN) were down 8.56 percent to $37.19 after the company issued a weak 2014 outlook and projected 2015 earnings of $1.95 to $2.20 per share.

Niska Gas Storage Partners LLC (NYSE: NKA) was down, falling 16.91 percent to $3.17 after the company reported Q3 results and announced the suspension of common unit distribution.

Commodities

In commodity news, oil traded up 1.26 percent to $48.85, while gold traded down 0.70 percent to $1,270.30.

Silver traded down 0.60 percent Monday to $17.11, while copper rose 0.74 percent to $2.51.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 declined 0.39 percent, the Spanish Ibex Index fell 1.93 percent, while Italy’s FTSE MIB Index declined 0.67 percent. Meanwhile, the German DAX gained 0.33 percent, and the French CAC 40 slipped 0.17 percent while UK shares rose 0.05 percent.

Economics

Consumer spending declined 0.3% in December, versus economists’ expectations for a 0.2% drop. Personal income gained 0.3%, versus expectations for a 0.2% growth.

The final reading of the US manufacturing PMI rose to 53.90 in January, versus a prior reading of 53.70.

The ISM manufacturing PMI declined to 53.50 in January, versus a prior reading of 55.10. However, economists were expecting a reading of 54.50.

US construction spending rose 0.40% in December, versus economists’ expectations for a 0.70% growth.

The Treasury is set to auction 3-and 6-month bills.

 

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