Mid-Morning Market Update: Markets Open Lower; Delta Air Lines Profit Beats Estimates

Following the market opening Thursday, the Dow traded down 0.94 percent to 17,973.96 while the NASDAQ declined 1.27 percent to 5,172.30. The S&P also fell, dropping 1.10 percent to 2,115.74.

Leading and Lagging Sectors

Thursday morning, utilities shares gained by 0.05 percent. Meanwhile, top gainers in the sector included National Fuel Gas Co. NFG, and Vectren Corp VEC.

In trading on Thursday, basic materials shares fell by 2.1 percent. Meanwhile, top losers in the sector included Freeport-McMoRan Inc FCX, down 7 percent, and United States Steel Corporation X, down 7 percent.

Top Headline

Delta Air Lines, Inc. DAL disclosed better than expected earnings for the third quarter.

The company reported net income of $1.259 billion for the September quarter, down from $1.315 billion in the year-ago quarter. However, EPS rose marginally from $1.65 to $1.69. On an adjusted basis, the company would have earned $1.70 a share thus beating the Street estimates of $1.64.

Delta Air Lines operating revenue fell 6 percent from $11.107 billion to $10.483 billion. While passenger revenue fell 5 percent, revenue from cargo dropped 15 percent from the previous year period.

Equities Trading UP

Ocular Therapeutix Inc OCUL shares shot up 19 percent to $7.53 after the company revealed a tactical collaboration, option and license deal with Regeneron Pharmaceuticals Inc REGN. Ocular stock surged more than 25 percent. According to the agreement terms, the two companies would develop a sustained release formulation of aflibercept, which fits properly for clinical development advancement.

Shares of ContraVir Pharmaceuticals Inc CTRV got a boost, shooting up 16 percent to $1.29 after the company disclosed positive interim data for CMX157 from its Phase 2a clinical study.

Long Island Iced Tea Corp LTEA shares were also up, gaining 12 percent to $5.20 after the company disclosed that it has entered into a partnership with Food Lion LLC.

Equities Trading DOWN

Fluidigm Corporation FLDM shares dropped 23 percent to $5.43 after the company reported weak preliminary revenue for the third quarter.

Shares of Flex Pharma Inc FLKS were down 20 percent to $8.92 after the company announced FLX-787 clinical update.

TG Therapeutics Inc TGTX was down, falling around 18 percent to $6.77after the company disclosed that it has filed with the FDA an amended protocol for the GENUINE Phase 3 clinical trial.

Commodities

In commodity news, oil traded down 0.06 percent to $50.61 while gold traded up 0.45 percent to $1,259.50.

Silver traded up 0.03 percent Thursday to $17.51, while copper fell 2.39 percent to $2.12.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 declined 1.18 percent, the Spanish Ibex Index fell 1.21 percent, while Italy’s FTSE MIB Index slipped 1.30 percent. Meanwhile the German DAX declined 1.31 percent, and the French CAC 40 slipped 1.49 percent while U.K. shares fell 1.26 percent.

Economics

U.S. jobless claims were flat at 246,000 in the latest week. However, economists were expecting claims to reach 252,000 in the week.

Import prices rose 0.1 percent in September, versus economists’ expectations for a 0.2 percent growth. Export prices rose 0.3 percent, versus estimates of 0.1 percent gain.

The Energy Information Administration’s weekly report on natural gas stocks is schedule for release at 10:30 a.m. ET.

The Energy Information Administration’s weekly report on petroleum inventories is schedule for release at 11:00 a.m. ET.

Philadelphia Federal Reserve Bank President Patrick Harker is set to speak at 12:15 p.m. ET.

The U.S. Treasury budget data for September will be released at 2:00 p.m. ET.

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

Minneapolis Federal Reserve Bank President Neel Kashkari will speak in Missoula at 9:00 p.m. ET.