Mid-Afternoon Market Update: Stocks Turn Lower; BroadSoft Shares Rise On Earnings Beat
Toward the end of trading Monday, the Dow traded down 0.23 percent to 16,602.27 while the NASDAQ declined 0.11 percent to 4,585.66. The S&P also fell, dropping 0.23 percent to 1,943.67.
Leading and Lagging Sectors
On Monday, basic materials shares rose by 1.33 percent. Top gainers in the sector included Resolute Forest Products Inc (NYSE: RFP), Kronos Worldwide, Inc. (NYSE: KRO), and Handy & Harman Ltd (NASDAQ: HNH).
In trading on Monday, healthcare shares dropped by 0.59 percent. Meanwhile, top losers in the sector included Horizon Pharma PLC (NASDAQ: HZNP), down 12 percent, and Novavax, Inc. (NASDAQ: NVAX), down 10 percent.
Lumber Liquidators Holdings Inc (NYSE: LL) reported a wider-than-expected loss for its fourth quarter.
Lumber Liquidators said it lost $0.73 per share in the fourth quarter on revenue of $234.8 million. Wall Street analysts were expecting the company to lose $0.23 per share on revenue of $254.46 million.
Lumber Liquidators noted that its quarter sales fell by 13.7 percent compared to the same quarter a year ago as comparable store sales fell 17.2 percent. The company added that it also saw its number of customers invoiced by 15.6 percent while the average sale fell 1.6 percent. Lumber Liquidators also named Dennis R. Knowles as COO.
Equities Trading UP
API Technologies Corp (NASDAQ: ATNY) shares shot up 93 percent to $1.95 after the company agreed to be acquired by an affiliate of JF Lehman & Co for $2 per share in cash.
Shares of Federal-Mogul Holdings Corp (NASDAQ: FDML) got a boost, shooting up 45 percent to $7.24. Carl Icahn's Icahn Enterprises LP (NASDAQ: IEP) offered to buy the remaining stock of Federal-Mogul for $7 per share in cash. Federal-Mogul reported Q4 adjusted earnings of $0.22 per share on revenue of $1.798 billion.
BroadSoft Inc (NASDAQ: BSFT) shares were also up, gaining 17 percent to $36.94 after the company reported stronger-than-expected results for the fourth quarter.
Equities Trading DOWN
Intrepid Potash, Inc. (NYSE: IPI) shares dropped 56 percent to $0.980. Intrepid Potash reported a Q4 loss of $0.26 per share on revenue of $42.8 million.
Shares of United Natural Foods, Inc. (NASDAQ: UNFI) were down 22 percent to $30.60 after the company reported weak preliminary results. United Natural Foods also said that it entered into a definitive agreement to acquire Haddon House Food Products for $217.5 million.
Ocwen Financial Corp (NYSE: OCN) was down, falling around 32 percent to $4.21. Ocwen reported a Q4 loss of $1.79 per share on revenue of $362.5 million. The company also said it is co-operating with investigator requests for documentation relating to "liquidated loans and REO properties held in non-agency RMBS trusts."
In commodity news, oil traded up 2.93 percent to $33.74, while gold traded up 1.15 percent to $1,234.40.
Silver traded up 1.26 percent Monday to $14.90, while copper rose 0.07 percent to $2.13.
European shares closed mostly higher today. The eurozone's STOXX 600 gained 0.72 percent, the Spanish Ibex Index climbed 1.34 percent, while Italy's FTSE MIB Index jumped 0.80 percent. Meanwhile, the German DAX dropped 0.19 percent, and the French CAC 40 rose 0.90 percent, while U.K. shares rose 1.40 percent.
The Chicago PMI fell to 47.60 in February, versus a prior reading of 55.60. However, economists were expecting a reading of 53.00.
The pending home sales index declined 2.5 percent to 106.0 in February, versus a revised reading of 108.7 in December. However, economists were projecting a rise of 0.5 percent.
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