Mid-Morning Market Update: Markets Edge Lower; Tyson Foods Tops Q3 Expectations

Following the market opening Monday, the Dow traded down 0.02 percent to 18,540.28 while the NASDAQ declined 0.12 percent to 5,214.99. The S&P also fell, dropping 0.05 percent to 2,181.69.

Leading and Lagging Sectors

Monday morning, the energy sector proved to be a source of strength for the market. Leading the sector was strength from Pacific Drilling SA PACD and Tidewater Inc. TDW.

In trading on Monday, healthcare shares fell by 0.63 percent. Meanwhile, top losers in the sector included Dynavax Technologies Corporation DVAX, down 7 percent, and BioScrip Inc BIOS, down 5 percent.

Top Headline

Tyson Foods, Inc. TSN announced better-than-expected earnings for the third quarter.

The company reported net income of $485 million for the three-month period April — June, sharply higher than $343 million in the preceding year period. Similarly, EPS also surged from $0.83 to $1.25, while adjusted EPS climbed from $0.80 to $1.21 in the third quarter. The Street estimate was $1.06 a share.

However, sales revenue dipped from $10.07 billion to $9.4 billion in the same quarter last year. But, it was better than the analysts' predictions of $9.33 billion.

Equities Trading UP

Mattress Firm Holding Corp MFRM shares shot up 115 percent to $63.70 as Steinhoff International Holdings NV announced plans to buy Mattress Firm for $3.8 billion, including debt.

Shares of Image Sensing Systems, Inc. ISNS got a boost, shooting up 121 percent to $5.35 following Q2 earnings report. Image Sensing Systems posted quarterly earnings of $0.24 per share on revenue of $4.7 million on Friday.

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MEI Pharma Inc MEIP shares were also up, gaining 29 percent to $2.08. Helsinn and MEI Pharma reported a strategic deal for the development and commercialization of Pracinostat for the treatment of AML and other hematologic diseases.

Equities Trading DOWN

Check Cap Ltd CHEK shares dropped 24 percent to $2.31 after the company reported a $5.9 million financing.

Shares of Digital Ally, Inc. DGLY were down 15 percent to $4.85. Digital Ally reported a Q2 adjusted loss of $0.45 per share on revenue of $4.4 million.

Dean Foods Co DF was down, falling around 8 percent to $17.31 after the company reported weaker-than-expected quarterly earnings.

Commodities

In commodity news, oil traded up 2.03 percent to $42.65 while gold traded down 0.36 percent to $1,339.60.

Silver traded down 0.21 percent Monday to $19.78, while copper rose 0.93 percent to $2.17.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 fell 0.03 percent, the Spanish Ibex Index rose 0.41 percent, while Italy’s FTSE MIB Index gained 0.58 percent. Meanwhile the German DAX rose 0.62 percent, and the French CAC 40 gained 0.13 percent, while U.K. shares rose 0.02 percent.

Economics

The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.