Market Overview

Mid-Afternoon Market Update: Dow Drops 100 Points; eBay Shares Spike Higher

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Toward the end of trading Thursday, the Dow traded down 0.55 percent to 18,493.57 while the NASDAQ declined 0.38 percent to 5,070.75. The S&P also fell, dropping 0.45 percent to 2,163.36.

Leading and Lagging Sectors

On Thursday, basic materials shares climbed by 0.26 percent. Top gainers in the sector included Joy Global Inc. (NYSE: JOY) and Hecla Mining Company (NYSE: HL).

In trading on Thursday, industrials shares fell by 0.83 percent. Meanwhile, top losers in the sector included Graco Inc. (NYSE: GGG), down 9 percent, and Southwest Airlines Co (NYSE: LUV), down 11 percent.

Top Headline

General Motors Company (NYSE: GM) reported better-than-expected profit for the second quarter and raised its forecast for full.

General Motors projects 2016 adjusted earnings before interest and taxes of $5.50 to $6.00 per share, versus prior forecast of $5.25 to $5.75 per share.

The company’s quarterly net income increased to $2.87 billion, or $1.81 per share, compared to $1.1 billion, or $0.67 per share, in the year-earlier period. Excluding items, GM earned $1.86 per share, beating analysts’ estimates of $1.52 per share.

Equities Trading UP

Relypsa Inc (NASDAQ: RLYP) shares shot up 59 percent to $31.89 after Galenica agreed to acquire Relypsa for $1.53 billion in cash.

Shares of Joy Global Inc. (NYSE: JOY) got a boost, shooting up 19 percent to $28.00 after Komatsu Ltd. agreed to acquire the company for around $2.9 billion.

eBay Inc (NASDAQ: EBAY) shares were also up, gaining 12 percent to $30.09 as the company reported posted upbeat earnings for its second quarter on Wednesday. Management also announced an extension of the company’s stock-repurchase plan, as the board had approved an additional $2.5 billion in buybacks.


Equities Trading DOWN

Essendant Inc (NASDAQ: ESND) shares dropped 37 percent to $20.58. Essendant posted Q2 adjusted earnings of $0.55 per share on revenue of $1.35 billion.

Shares of Sunshine Heart Inc (NASDAQ: SSH) were down 25 percent to $1.01 after the company reported an agreement with single investor for offering of convertible preferred stock with proceeds of $3.46 million.

Monotype Imaging Holdings Inc. (NASDAQ: TYPE) was down, falling around 20 percent to $19.86 as the company reported the intent to buy Olapic for around $130 million.


Commodities

In commodity news, oil traded down 2.16 percent to $44.76 while gold traded up 0.77 percent to $1,329.40.

Silver traded up 1.06 percent Thursday to $19.82, while copper rose 0.22 percent to $2.26.

Eurozone

European shares closed mixed today. The eurozone’s STOXX 600 fell 0.07 percent, the Spanish Ibex Index rose 0.09 percent, while Italy’s FTSE MIB Index rose 0.25 percent. Meanwhile the German DAX rose 0.14 percent, and the French CAC 40 declined 0.08 percent, while U.K. shares fell 0.43 percent.

Economics

U.S. jobless claims declined 1,000 to 253,000 in the latest week. Economists were projecting initial jobless claims to reach 265,000 in the week.

The Philadelphia Fed general conditions index slipped to negative 2.9 in July, versus positive 4.7 in June. However, economists were expecting a reading of 5.

The Chicago Fed National Activity Index rose to 0.16 in June, versus a prior reading of -0.51.

Existing-home sales increased 1.1 percent to an annual rate of 5.57 million in June. However, economists were expecting a 5.48 million rate.

The index of leading indicators rose 0.30 percent in June, versus economists’ expectations for a 0.20 percent growth.

Supplies of natural gas increased 34 billion cubic feet for the week ended July 15, the U.S. Energy Information Administration reported. However, analysts were expecting a gain of 40 billion cubic feet.

Data on money supply for the recent week will be released at 4:30 p.m. ET.

 

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