Market Overview

Mid-Morning Market Update: Markets Mostly Flat; Krispy Kreme Misses Q2 Estimates

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Following the market opening Thursday, the Dow traded down 0.06 percent to 16,244.65 while the NASDAQ climbed 0.08 percent to 4,760.38. The S&P also fell, dropping 0.06 percent to 1,940.91.

Leading and Lagging Sectors

In trading on Thursday, healthcare shares surged by 0.54 percent. Meanwhile, top gainers in the sector included Orexigen Therapeutics, Inc. (NASDAQ: OREX), up 11 percent, and DURECT Corporation (NASDAQ: DRRX), up 6 percent.

Energy shares tumbled by 0.65 percent in Thursday’s trading. Meanwhile, top losers in the sector included Petroleo Brasileiro Petrobras SA (ADR) (NYSE: PBR), down 6 percent, and Hallador Energy Co (NASDAQ: HNRG), off 5 percent.

Top Headline

Krispy Kreme Doughnuts (NYSE: KKD) reported weaker-than-expected results for the second quarter on Wednesday.

The Winston-Salem, North Carolina-based company posted quarterly net income of $5.9 million, or $0.09 per share, up from $5.8 million, or $0.08 per share, in the year-ago quarter. Excluding items, adjusted net income surged to $0.15 per share from $0.13 per share.

Its revenue climbed 5.7 percent year-over-year to $127.3 million from $120.5 million. However, analysts were expecting earnings of $0.18 per share on revenue of $131.46 million.

Equities Trading UP

Con-way Inc (NYSE: CNW) shares shot up 33 percent to $47.33 after the company agreed to be acquired by XPO Logistics Inc (NYSE: XPO) for $47.60 per share, or $3 billion.

Shares of Orexigen Therapeutics, Inc. (NASDAQ: OREX) got a boost, shooting up 15 percent to $3.01 after the company reported that it has raised $60 million following common stock sale to Baupost.

Palo Alto Networks Inc (NYSE: PANW) shares were also up, gaining 6 percent to $174.40 after the company reported upbeat results for its fiscal fourth quarter and issued a strong outlook for the current quarter.

Equities Trading DOWN

Krispy Kreme Doughnuts (NYSE: KKD) shares tumbled 14 percent to $15.18 after the company reported weaker-than-expected results for the second quarter and lowered its forecast for the year.

Shares of American Midstream Partners LP (NYSE: AMID) were down 14 percent to $10.25 after the company announced the pricing of 7.5 million unit offering at $11.31 per unit.

Usa Compression Partners LP (NYSE: USAC) was down, falling 11 percent to $17.97 after the company reported the pricing of its offering of 4 million units at $19.33 per unit.

Commodities

In commodity news, oil traded up 0.61 percent to $44.42, while gold traded up 0.65 percent to $1,109.20.

Silver traded up 0.68 percent Thursday to $14.68, while copper rose 0.29 percent to $2.44.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 declined 1.40 percent, the Spanish Ibex Index fell 1.75 percent, while Italy’s FTSE MIB Index dipped 1.28 percent. Meanwhile, the German DAX slipped 1.26 percent, and the French CAC 40 dropped 1.58 percent, while U.K. shares fell 1.45 percent.

Economics

US jobless claims declined by 6,000 to 275,000 in the week ended September 5, 2015. Economists were estimating claims to reach 275,000 in the week.

US import price index shrank 1.8 percent in August, versus economists’ expectations for a 1.6 percent decline. US export prices slipped 1.4 percent in the month, versus expectations for a 0.3 percent drop.

US wholesale inventories slipped 0.10 percent in July, versus economists’ expectations for a 0.30 percent growth.

Posted-In: Earnings News Guidance Eurozone Futures Commodities Global Econ #s

 

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