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Mid-Day Market Update: Apple Drops Following Weak Results; Nanometrics Shares Surge

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Midway through trading Wednesday, the Dow traded up 0.18 percent to 18,022.89 while the NASDAQ declined 0.80 percent to 4,849.34. The S&P also fell, dropping 0.04 percent to 2,090.84.

Leading and Lagging Sectors

On Wednesday, the energy sector proved to be a source of strength for the market. Leading the sector was strength from Ocean Rig UDW Inc (NASDAQ: ORIG) and Legacy Reserves LP (NASDAQ: LGCY).

In trading on Wednesday, technology shares fell by 1.43 percent. Meanwhile, top losers in the sector included Apple Inc. (NASDAQ: AAPL), down 6 percent, and Zix Corporation (NASDAQ: ZIXI), down 8 percent.

Top Headline

Boeing Co (NYSE: BA) reported weaker-than-expected earnings for its first quarter, but the company exceeded analysts' sales estimates.

Boeing posted quarterly earnings of $1.22 billion, or $1.83 per share, down from $1.34 billion, or $1.87 per share, in the year-ago period. Its core earnings slipped to $1.74 per share from $1.97 per share.

Its revenue increased around 2 percent to $22.63 billion. However, analysts were expecting earnings of $1.83 per share on revenue of $21.44 billion.

Equities Trading UP

BioTelemetry, Inc. (NASDAQ: BEAT) shares shot up 20 percent to $15.08 as the company reported stronger-than-expected Q1 results.

Shares of Nanometrics Incorporated (NASDAQ: NANO) got a boost, shooting up 15 percent to $18.11 as the company reported better-than-expected results for its first quarter and issued a strong outlook for the current quarter.

Dreamworks Animation Skg Inc (NASDAQ: DWA) shares were also up, gaining 16 percent to $31.49 after the Wall Street Journal reported the company is being eyed as a potential acquisition target. The Wall Street Journal, citing "people familiar with the matter," stated that Comcast Corporation (NASDAQ: CMCSA) is in talks to acquire the movie studio for more than $3 billion.

Equities Trading DOWN

Twitter Inc (NYSE: TWTR) shares dropped 16 percent to $14.99. Twitter reported better-than-expected earnings for its first quarter on Tuesday. However, the company reported weak quarterly revenue and issued a downbeat revenue forecast for the second quarter.

Shares of Buffalo Wild Wings (NASDAQ: BWLD) were down 13 percent to $125.18 as the company reported weaker-than-expected results for its first quarter on Tuesday.

Apple Inc. (NASDAQ: AAPL) was down, falling around 6 percent to $97.74 as the company reported downbeat results for its second quarter and issued a weak sales forecast for the third quarter. iPhone sales came out at 51.2 million, about 1 million above estimates but was the first sales decline in the product's history. The company's board increased its share buyback program to $175 billion and announced a 10 percent increase to quarterly dividend.

Commodities

In commodity news, oil traded up 0.27 percent to $44.16 while gold traded up 0.37 percent to $1,248.00.

Silver traded up 0.04 percent Wednesday to $17.17, while copper fell 1.69 percent to $2.21.

Eurozone

European shares were mostly higher today. The eurozone's STOXX 600 rose 0.29 percent, the Spanish Ibex Index climbed 0.70 percent, while Italy's FTSE MIB Index gained 0.48 percent. Meanwhile, the German DAX rose 0.45 percent, and the French CAC 40 gained 0.62 percent, while U.K. shares rose 0.32 percent.

Economics

U.S. trade gap in goods narrowed to $56.90 billion in March, versus a deficit of $62.86 billion in the previous month. Economists were expecting a deficit of $62.50 billion.

The Pending Home Sales Index increased 1.4 percent to 110.5 in March. Economists projected a 0.5 percent growth.

Crude oil supplies rose 2 million barrels for the week ended April 22, the U.S. Energy Information Administration reported. Economists were expecting a gain of 2.33 million barrels. Gasoline supplies surged 1.6 million barrels, while distillate stockpiles slipped 1.7 million barrels last week.

The Federal Open Market Committee will announce its policy decision at 2:00 p.m. ET.

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

 

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