Market Overview

Mid-Morning Market Update: Markets Open Lower; Microsoft Plans To Cut 7,800 Jobs

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Following the market opening Wednesday, the Dow traded down 1.06 percent to 17,588.94 while the NASDAQ slipped 1.20 percent to 4,937.73. The S&P also fell, dropping 1.05 percent to 2,059.58.

Leading and Lagging Sectors

Utilities shares slipped by just 0.08 percent on Wednesday. Meanwhile, top gainers in the sector included Genie Energy Ltd (NYSE: GNE), up 2 percent, and ONEOK, Inc. (NYSE: OKE), up 1.2 percent.

In trading on Wednesday, basic materials shares dipped by 1.64 percent. Meanwhile, top losers in the sector included Aluminum Corp. of China Limited (ADR) (NYSE: ACH), down 10 percent, and Sinopec Shanghai Petrochemical Co. (ADR) (NYSE: SHI), off 15 percent.

Top Headline

Microsoft Corporation (NASDAQ: MSFT) on Wednesday released restructuring details which primarily focus on its phone hardware business to "better focus and align resources."

As part of the restructuring, Microsoft will record an impairment charge of $7.6 billion related to assets associated with its acquisition of Nokia Devices and Services (NDS) business.

The company also announced the reduction of up to 7,800 positions, primarily within the phone business that has struggled to gain meaningful market share against Android and iPhone operating systems.

Equities Trading UP

ImmuCell Corporation (NASDAQ: ICCC) shares shot up 10 percent to $8.58 after the company lifted its Q2 sales outlook.

Shares of Container Store Group Inc (NYSE: TCS) got a boost, shooting up 7 percent to $18.75 after the company reported a narrower-than-expected loss for its first quarter.

Fuel Systems Solutions, Inc. (NASDAQ: FSYS) shares were also up, gaining 4 percent to $7.43. Craig-Hallum upgraded Fuel Systems Solutions from Hold to Buy and lowered the price target from $11.00 to $10.00.

Equities Trading DOWN

Perficient, Inc. (NASDAQ: PRFT) shares tumbled 13 percent to $16.46 after the company lowered its Q2 and FY15 outlook.

Shares of Enphase Energy Inc (NASDAQ: ENPH) were down 12 percent to $6.63. JP Morgan downgraded Enphase Energy from Overweight to Neutral and lowered the price target from $16.00 to $10.00.

Carbylan Therapeutics Inc (NASDAQ: CBYL) was down, falling 9 percent to $6.56. Carbylan Therapeutics named Dr. Prem Ramiya as Vice President, Pharmaceutical Development & Supply Chain.

Commodities

In commodity news, oil traded up 0.86 percent to $52.78, while gold traded up 0.76 percent to $1,161.40.

Silver traded up 1.08 percent Wednesday to $15.13, while copper rose 1.96 percent to $2.49.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 rose 0.23 percent, the Spanish Ibex Index gained 0.72 percent, while Italy’s FTSE MIB Index climbed 1.98 percent. Meanwhile, the German DAX gained 0.73 percent, and the French CAC 40 jumped 1.02 percent while UK shares climbed 1.01 percent.

Economics

The MBA reported that its index of mortgage application activity rose 4.60 percent in the week ended July 3, 2015.

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

Posted-In: Earnings News Eurozone Futures Commodities Management Econ #s Intraday Update

 

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