Market Overview

Mid-Morning Market Update: Markets Mixed; Campbell Soup Profit Misses Estimates

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Following the market opening Thursday, the Dow traded down 0.07 percent to 18,388.38 while the NASDAQ climbed 0.15 percent to 5,221.07. The S&P also fell, dropping 0.16 percent to 2,167.48.

Leading and Lagging Sectors

Thursday morning, cyclical consumer goods & services shares gained by 0.48 percent. Meanwhile, top gainers in the sector included Oxford Industries Inc (NYSE: OXM), and Melco Crown Entertainment Ltd (ADR) (NASDAQ: MPEL).

In trading on Thursday, energy shares fell by 0.42 percent. Meanwhile, top losers in the sector included Diamond Offshore Drilling Inc (NYSE: DO), down 8 percent, and Frontline Ltd. (NYSE: FRO), down 6 percent.

Top Headline

Campbell Soup Company (NYSE: CPB) reported weaker-than-expected earnings for the fourth quarter.

On a GAAP basis, the company suffered a net loss of $81 million, or a loss of $0.26 a share, compared to net income of $17 million, or $0.05 a share, in the year-ago quarter. On an adjusted basis, EPS fell 6 percent from $0.49 to $0.46 and missed the Street estimates of $0.50 a share. Campbell net sales remained flat at $1.69 billion and came in line with the analysts' predictions.

Moving ahead, the company expects adjusted EPS to be $3.00-$3.09 on sales growth of zero to 1 percent. Street is looking for an EPS of $3.14 on one percent growth in revenue.

Equities Trading UP

Cynapsus Therapeutics Inc (NASDAQ: CYNA) shares shot up 115 percent to $39.41 as Sunovion Pharmaceuticals announced plans to acquire Cynapsus for $40.50 per share.

Shares of Jaguar Animal Health Inc (NASDAQ: JAGX) got a boost, shooting up 32 percent to $1.71 after the company reported additional topline results from study of second-generation formulation of Neonorm Calf conducted in association with Cornell University College of Veterinary Medicine.

Oxford Industries Inc (NYSE: OXM) shares were also up, gaining 13 percent to $70.40 as the company posted better-than-expected Q2 results.


Equities Trading DOWN

Genesco Inc. (NYSE: GCO) shares dropped 28 percent to $52.62. Genesco posted upbeat Q2 earnings, but sales missed expectations. The company also lowered its FY guidance.

Shares of Vectrus Inc (NYSE: VEC) were down 23 percent to $26.03 as the company disclosed that it has lost the Army contract for logistics in Kuwait and Qatar. The company also reported that its does not impact its guidance.

Xcerra Corp (NASDAQ: XCRA) was down, falling around 8 percent to $5.38. Xcerra posted better-than-expected Q4 earnings, but sales missed estimates. The company also issued a weak forecast for the current quarter.


Commodities


In commodity news, oil traded down 0.89 percent to $44.30 while gold traded down 0.05 percent to $1,310.70.

Silver traded up 0.26 percent Thursday to $18.76, while copper rose 0.10 percent to $2.08.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.73 percent, the Spanish Ibex Index rose 1.59 percent, while Italy’s FTSE MIB Index surged 1.03 percent. Meanwhile the German DAX gained 0.26 percent, and the French CAC 40 climbed 0.80 percent while U.K. shares fell 0.14 percent.

Economics

U.S. initial jobless claims increased 2,000 to 263,000 last week. However, economists were expecting claims to reach 265,000 in the week.

Non-farm productivity declined 0.6 percent in the second quarter, while unit-labor costs rose 4.3 percent in the quarter.

The Markit manufacturing PMI declined to 52.00 in August, versus a prior reading of 52.10. However, economists were expecting a reading of 52.10.

The ISM manufacturing index dropped to 49.40 in August, versus a prior reading of 52.60. Economists projected a reading of 52.40.

U.S. construction spending came in flat for July, versus economists’ expectations for a 0.50 percent growth.

The Energy Information Administration’s weekly report on natural gas stocks will be released at 10:30 a.m. ET.

Cleveland Federal Reserve Bank President Loretta Mester is set to speak in Lexington, Kentucky at 12:25 p.m. ET.

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

 

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