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Mid-Morning Market Update: Markets Open Lower; Kroger Lowers FY Forecast



Following the market opening Friday, the Dow traded down 0.83 percent to 18,326.20 while the NASDAQ declined 0.88 percent to 5,213.48. The S&P also fell, dropping 1.02 percent to 2,159.10.

Leading and Lagging Sectors

Friday morning, financial shares slipped by just 0.5 percent. Meanwhile, top gainers in the sector included LNB Bancorp Inc (NASDAQ: LNBB), and Walter Investment Management Corp (NYSE: WAC).

In trading on Friday, utilities shares dipped by 1.76 percent. Meanwhile, top losers in the sector included Companhia Energetica Minas Gerais (ADR) (NYSE: CIG), down 6 percent, and Companhia Paranaense de Energia (ADR) (NYSE: ELP), down 5 percent.

Top Headline

Kroger Co (NYSE: KR) maintained its winning streak of reporting an earnings beat in the second quarter. However, its sales fell short of expectations. The company also reduced its full year forecast.

The company earned a profit of $383 million, or $0.40 per share, down from $433 million, or $0.44 per share, in the year-ago period. Excluding charges, adjusted net earnings would have been $454 million, or $0.47 per share, higher than $433 million, or $0.44 per share, in the same period last year. Street analysts predicted an EPS of $0.45.

Kroger's total sales grew 4.0 percent from $25.5 billion to $26.6 billion. Excluding fuel, its total sales would have increased 7.3 percent. Street expected $26.79 billion sales.

Equities Trading UP

Lpath, Inc. (NASDAQ: LPTN) shares shot up 25 percent to $3.13. Apollo Endosurgery and Lpath disclosed that they have signed a merger agreement.

Shares of Lexicon Pharmaceuticals, Inc. (NASDAQ: LXRX) got a boost, shooting up 22 percent to $18.73 as the company reported first successful Phase 3 trial of an oral anti-diabetic for Type 1 diabetes.

Finisar Corporation (NASDAQ: FNSR) shares were also up, gaining 14 percent to $26.37 as the company reported upbeat results for its first quarter and issued a strong forecast for the current quarter.

Equities Trading DOWN

Violin Memory Inc (NYSE: VMEM) shares dropped 38 percent to $0.990. Violin Memory reported a loss of $20.6 million on revenue of $7.5 million in its fiscal second quarter.

Shares of Lantheus Holdings Inc (NASDAQ: LNTH) were down 22 percent to $7.42 after the company reported an offering of 5.2 million shares.

Nextera Energy Partners LP (NYSE: NEP) was down, falling around 6 percent to $28.87 as the company announced an offering of 10.402 million common units.


In commodity news, oil traded down 1.76 percent to $46.78 while gold traded down 0.25 percent to $1,338.30.

Silver traded down 0.88 percent Friday to $19.51, while copper fell 0.38 percent to $2.09.


European shares were lower today. The eurozone’s STOXX 600 fell 0.67 percent, the Spanish Ibex Index declined 0.54 percent, while Italy’s FTSE MIB Index dropped 0.63 percent. Meanwhile the German DAX declined 0.64 percent, and the French CAC 40 slipped 0.74 percent while U.K. shares fell 0.72 percent.


The Baker Hughes North American rig count report for the latest week will be released at 1:00 p.m. ET.

Federal Reserve Bank of Dallas President Rob Kaplan will speak in Irving, Texas at 8:15 p.m. ET.

Posted-In: Earnings News Guidance Eurozone Commodities Global Intraday Update Markets


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