Market Overview

Mid-Day Market Update: FEI Company Rises Following Acquisition News; Terex Shares Drop

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Midway through trading Friday, the Dow traded up 0.17 percent to 17,857.98 while the NASDAQ gained 0.39 percent to 4,920.66. The S&P also rose, gaining 0.24 percent to 2,095.08.

Leading and Lagging Sectors

Cyclical consumer goods & services shares gained by 0.39 percent in trading on Friday. Top gainers in the sector included Big Lots, Inc. (NYSE: BIG), Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA), and COMSCORE, Inc. (NASDAQ: SCOR).

In trading on Friday, basic materials shares dropped by 0.45 percent. Meanwhile, top losers in the sector included Cliffs Natural Resources Inc (NYSE: CLF), down 6 percent, and McEwen Mining Inc (NYSE: MUX), down 6 percent.

Top Headline

Big Lots, Inc. (NYSE: BIG) reported stronger-than-expected results for the first quarter and raised its full-year forecast.

Big Lots delivered earnings of $0.79 per share, up from $0.60 per share in the year-ago quarter. Excluding adjustments, it would have delivered income from continuing operations of $0.82 per share. Street analysts estimated the retailer to earn $0.70 a share.

Its sales grew 2.34 percent to $1.31 billion from $1.28 billion in the previous year quarter. Analysts predicted revenue of $1.3 billion. Its comparable store sales grew three percent.

For the full year, the retailer sees adjusted income from continuing operations to be $3.35 - $3.50 a share representing 11 – 16 percent increase over the last year's adjusted EPS of $3.01.

Equities Trading UP

LendingClub Corp (NYSE: LC) shares shot up 15 percent to $5.02 after the Wall Street Journal reported that the company is in talks with Citigroup Inc (NYSE: C). The Wall Street Journal, citing "people familiar with the discussions," noted that the talks involve the possibility of Citigroup buying or providing financing for future loans.

Shares of Vivint Solar Inc (NYSE: VSLR) got a boost, shooting up 36 percent to $3.58 after Deutsche Bank upgraded the stock to Buy from Hold, saying that its power co-valuation exercise suggests considerable upside for the solar company. The brokerage also raised its price target on the stock to $7.50 from $3.50.

FEI Company (NASDAQ: FEIC) shares were also up, gaining 14 percent to $107.55 as the company agreed to be acquired by Thermo Fisher Scientific Inc. (NYSE: TMO) for $4.2 billion.

Equities Trading DOWN

Hercules Offshore, Inc. (NASDAQ: HERO) shares dropped 28 percent to $1.40 as the company reported that it has entered into a restructuring support agreement with lenders.

Shares of UniPixel Inc (NASDAQ: UNXL) were down 22 percent to $1.62 after the company announced a public offering of newly issued shares of stock. UniPixel plans to offer 5.35 million shares of its own stock at a public offering price of $1.50 per share with the option for its underwriters to purchase up to an additional 802,500 shares.

Terex Corporation (NYSE: TEX) was down, falling around 17 percent to $20.22 as the company revealed discussions with Zoomlion Heavy Industry Science and Technology Co. in respect of the purchase of Terex, either with or without the MHPS segment, were terminated.

Commodities

In commodity news, oil traded down 0.57 percent to $49.20 while gold traded down 0.43 percent to $1,217.50.

Silver traded down 0.45 percent Friday to $16.27, while copper rose 0.40 percent to $2.11.

Eurozone

European shares were mostly higher today. The eurozone's STOXX 600 gained 0.17 percent, the Spanish Ibex Index rose 0.49 percent, while Italy's FTSE MIB Index declined 0.19 percent. Meanwhile the German DAX gained 0.16 percent, and the French CAC 40 declined 0.07 percent, while U.K. shares fell 0.03 percent.

Economics

The U.S. economy grew at an annual pace of 0.8 percent in the first quarter. However, economists were expecting a 0.9 percent growth.

The University of Michigan's consumer sentiment index increased to 94.70 in May, versus a final April reading of 89.00. Economists were projecting a reading of 95.40.

 

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