Market Overview

Mid-Day Market Update: Dow Tumbles Over 200 Points; Plum Creek Timber Shares Jump Following Weyerhaeuser Deal

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Midway through trading Monday, the Dow traded down 1.25 percent to 17,686.95 while the NASDAQ declined 1.43 percent to 5,073.71. The S&P also fell, dropping 1.32 percent to 2,071.42.

Leading and Lagging Sectors

In trading on Monday, utilities shares rose by 0.19 percent. Top gainers in the sector included Exelon Corporation (NYSE: EXC), up 3.2 percent, and TransAlta Corporation (USA) (NYSE: TAC), up 2.9 percent.

Cyclical consumer goods & services shares declined around 1.28 percent in Monday's trading. Meanwhile, top losers in the sector included Kandi Technologies Group Inc (NASDAQ: KNDI), down 19 percent, and Pier 1 Imports Inc (NYSE: PIR), off 9 percent.

Top Headline

Priceline Group Inc (NASDAQ: PCLN) reported better-than-expected earnings for the third quarter, but the company issued a weak earnings forecast for the current quarter.

The Norwalk, Connecticut-based company reported quarterly net income of $1.2 billion, or $23.41 per share, compared to $1.06 billion, or $20.03 per share, in the year-ago quarter. Excluding items, the company's adjusted earnings surged to $25.35 per share from $22.16 per share.

Its revenue increased 9.4 percent to $3.10 billion. However, analysts were projecting earnings of $24.23 per share on revenue of $3.05 billion.

Priceline expects Q4 adjusted earnings of $11.10 to $11.90 per share, versus analysts' estimates of $12.42 per share. The company also projects gross travel bookings to increase 1 percent to 8 percent.

Equities Trading UP

Plum Creek Timber Co. Inc. (NYSE: PCL) shares shot up 16 percent to $46.84 after Weyerhaeuser Co (NYSE: WY) announced its plans to buy Plum Creek Timber in an $8.44 billion deal.

Shares of Apache Corporation (NYSE: APA) got a boost, shooting up 11 percent to $53.05. Apache rejected a takeover bid from unidentified buyer and is working with Goldman Sachs, according to Bloomberg.

Blount International Inc (NYSE: BLT) shares were also up, gaining 10 percent to $6.79. Blout International reported Q3 earnings of $0.25 per share on revenue of $209 million.

Equities Trading DOWN

Kandi Technologies Group Inc (NASDAQ: KNDI) shares tumbled 18 percent to $8.84. Kandi Technologies reported Q3 earnings of $0.13 per share on revenue of $50.5 million.

Shares of Kronos Worldwide, Inc. (NYSE: KRO) were down 15 percent to $6.93. Kronos Worldwide reported a Q3 adjusted loss of $0.03 per share on revenue of $336.5 million.

Priceline Group Inc (NASDAQ: PCLN) was down, falling 9 percent to $1,316.47. Priceline reported better-than-expected earnings for the third quarter, but the company issued a weak earnings forecast for the current quarter.

Commodities

In commodity news, oil traded down 0.70 percent to $43.98, while gold traded up 0.12 percent to $1,089.00.

Silver traded down 0.99 percent Monday to $14.55, while copper fell 0.04 percent to $2.24.

Eurozone

European shares were lower today. The eurozone's STOXX 600 slipped 0.78 percent, the Spanish Ibex Index declined 0.78 percent, while Italy's FTSE MIB Index dipped 1.04 percent. Meanwhile, the German DAX declined 0.98 percent, and the French CAC 40 slipped 1.03 percent, while U.K. shares fell 0.67 percent.

Economics

On the economics calendar Monday, there is no important data due out.

Posted-In: Earnings M&A News Guidance Eurozone Commodities Intraday Update Markets

 

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