Market Overview

Mid-Morning Market Update: Markets Open Lower; Pfizer Beats Q1 Expectations

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Following the market opening Tuesday, the Dow traded down 0.79 percent to 17,750.39 while the NASDAQ declined 0.87 percent to 4,775.76. The S&P also fell, dropping 0.79 percent to 2,065.08.

Leading and Lagging Sectors

On Tuesday, the non-cyclical consumer goods & services sector proved to be a source of strength for the market.

In trading on Tuesday, basic materials shares fell by 2 percent. Meanwhile, top losers in the sector included P H Glatfelter Co (NYSE: GLT), down 12 percent, and Cabot Corp (NYSE: CBT), down 9 percent.

Top Headline

Pfizer Inc. (NYSE: PFE) reported stronger-than-expected results for its first quarter and raised its forecast for the full year.

The company posted quarterly earnings of $3.02 billion, or $0.49 per share, compared to $2.38 billion, or $0.38 per share, in the year-ago period. Excluding non-recurring items, the company's adjusted earnings came in at $0.67 per share.

Its revenue surged 20 percent to $13.01 billion. Analysts were expecting a profit of $0.55 per share on revenue of $12.00 billion.

Pfizer boosted its adjusted earnings forecast to $2.38-$2.48 per share, from $2.20-$2.30 per share for the full year 2016. Similarly, the company lifted its revenue forecast to $51-$53.0 billion, from $49-$51 billion.

Equities Trading UP

Symmetry Surgical Inc (NASDAQ: SSRG) shares shot up 25 percent to $12.96 as the company agreed to be acquired by RoundTable Healthcare Partners for $13.10 per share in cash.

Shares of Cognex Corporation (NASDAQ: CGNX) got a boost, shooting up 18 percent to $41.68 after the company reported better-than-expected Q1 results and raised its quarterly dividend from $0.07 per share to $0.075 per share.

Carbonite Inc (NASDAQ: CARB) shares were also up, gaining 23 percent to $9.40 as the company reported upbeat Q1 results.

Equities Trading DOWN

On Deck Capital Inc (NYSE: ONDK) shares dropped 34 percent to $5.48 as the company reported a wider-than-expected Q1 loss and issued a weak revenue forecast.

Shares of K2M Group Holdings Inc (NASDAQ: KTWO) were down 29 percent to $11.26. K2M Group Holdings reported a Q1 loss of $10.2 million on revenue of $56.3 million.

Walter Investment Management Corp (NYSE: WAC) was down, falling around 26 percent to $5.31. Walter Investment Management reported a Q1 loss of $0.50 per share.

Commodities

In commodity news, oil traded down 0.92 percent to $44.37 while gold traded up 0.29 percent to $1,299.60.

Silver traded down 0.32 percent Tuesday to $17.63, while copper fell 1.13 percent to $2.24.

Eurozone

European shares were lower today. The eurozone's STOXX 600 declined 1.42 percent, the Spanish Ibex Index fell 2.04 percent, while Italy's FTSE MIB Index declined 2.01 percent. Meanwhile, the German DAX dropped 1.59 percent, and the French CAC 40 slipped 1.33 percent while U.K. shares fell 0.85 percent.

Economics

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

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

 

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