Market Overview

Mid-Afternoon Market Update: Alliance Fiber Optic Products Gains On Acquisition News; SeaChange Shares Tumble

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Toward the end of trading Friday, the Dow traded up 0.33 percent to 17,598.98 while the NASDAQ climbed 0.15 percent to 4,855.43. The S&P also rose, gaining 0.40 percent to 2,050.03.

Leading and Lagging Sectors

On Friday, energy shares gained by 2.70 percent. Meanwhile, top gainers in the sector included Denbury Resources Inc. (NYSE: DNR), up 14 percent, and Helix Energy Solutions Group Inc (NYSE: HLX), up 16 percent.

In trading on Friday, cyclical consumer goods & services shares slipped by 0.45 percent. Meanwhile, top losers in the sector included Ruby Tuesday, Inc. (NYSE: RT), down 13 percent, and Gap Inc, down 13 percent.

Top Headline

Ruby Tuesday, Inc. reported weaker-than-expected results for its third quarter on Thursday. Ruby Tuesday also announced its Chief Financial Officer Jill Golder will be resigning after three years with the company.

The restaurants operator and franchisor posted Q3 EPS of $0.03, missing estimates by $0.02. Revenue of $271.47 million also fell $12.67 million short of expectations. Ruby Tuesday also lowered its top and bottom line fiscal year 2016 outlook.

Equities Trading UP

Alliance Fiber Optic Products Inc (NASDAQ: AFOP) shares shot up 19 percent to $18.47 after the company agreed to be acquired by Corning Incorporated (NYSE: GLW) for $18.50 per share.

Shares of RetailMeNot Inc (NASDAQ: SALE) got a boost, shooting up 12 percent to $8.42. RetailMeNot announced after Thursday's close it has entered into an agreement to acquire GiftCard Zen, a secondary marketplace for gift cards. The company reported preliminary Q1 revenue of $54 million to $54.5 million and FY16 revenue of $228 million to $241 million.

Duluth Holdings Inc (NASDAQ: DLTH) shares were also up, gaining 23 percent to $21.94 as the company reported upbeat results for its fourth quarter on Thursday.

Equities Trading DOWN

Viking Therapeutics Inc (NASDAQ: VKTX) shares dropped 39 percent to $1.17 after the company priced 7.5 million share offering at $1.25 per share.

Shares of SeaChange International (NASDAQ: SEAC) were down 31 percent to $3.85 after the company reported a worse-than-expected fourth quarter print and announced a CEO change.

Gap Inc (NYSE: GPS) was down, falling around 13 percent to $24.09 after the company reported a 6 percent drop in its same-store sales for March 2016, versus to a 2 percent gain during the same period last year. The company saw net sales for the five-week period ended April 2 fall around 6.5 percent on a year-over-year basis to $1.43 billion.

Commodities

In commodity news, oil traded up 6.55 percent to $39.69 while gold traded up 0.31 percent to $1,241.30.

Silver traded up 1.23 percent Friday to $15.35, while copper rose 0.51 percent to $2.09.

Eurozone

European shares closed higher today. The eurozone's STOXX 600 gained 1.15 percent, the Spanish Ibex Index rose 1.62 percent, while Italy's FTSE MIB Index surged 4.08 percent. Meanwhile, the German DAX climbed 0.96 percent, and the French CAC 40 surged 1.35 percent, while U.K. shares rose 1.10 percent.

Economics

U.S. wholesale inventories dropped 0.5 percent for February, versus a 0.2 percent decline in January.

 

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Posted-In: Earnings M&A News Guidance Eurozone Commodities Management Global