Market Overview

Mid-Morning Market Update: Markets Open Higher; Goldman Sachs Beats Q3 Expectations



Following the market opening Tuesday, the Dow traded up 0.40 percent to 18,159.00 while the NASDAQ climbed 0.93 percent to 5,248.15. The S&P also rose, gaining 0.59 percent to 2,139.04.

Leading and Lagging Sectors

Tuesday morning, basic materials shares gained by 1.2 percent. Meanwhile, top gainers in the sector included Celanese Corporation (NYSE: CE), and Stepan Company (NYSE: SCL).

In trading on Tuesday, utilities shares fell by 0.03 percent. Meanwhile, top losers in the sector included Pure Cycle Corporation (NASDAQ: PCYO), down 2 percent, and Consolidated Water Co. Ltd. (NASDAQ: CWCO), down 1.3 percent.

Top Headline

Goldman Sachs Group Inc (NYSE: GS) reported better-than-expected earnings for the third quarter on Tuesday.

The bank reported quarterly net earnings of $2.09 billion, or EPS of $4.88, for the third quarter. In the year-ago quarter, the net earnings were $1.33 billion, or EPS of $2.90. The latest quarter EPS is significantly higher than the Street estimates of $3.79 per share.

Goldman Sachs' net revenue grew from $6.86 billion to $8.17 billion and came in above the Street analysts' predictions of $7.42 billion.

Equities Trading UP

Netflix, Inc. (NASDAQ: NFLX) shares shot up 19 percent to $118.86 after the company reported better-than-expected earnings for its third quarter and issued a strong outlook for the fourth quarter. Total U.S. streaming members hit 47.5 million, and international streaming members, 39.2 million.

Shares of Resources Connection, Inc. (NASDAQ: RECN) got a boost, shooting up 13 percent to $14.81 as the company reported the commencement of a modified Dutch auction tender offer for up to 6 million shares in a $13.50 to $16 per share range.

Tile Shop Hldgs, Inc. (NASDAQ: TTS) shares were also up, gaining 11 percent to $18.50 as the company posted upbeat earnings for the third quarter.

Equities Trading DOWN

ImmuCell Corporation (NASDAQ: ICCC) shares dropped 26 percent to $5.76. ImmuCell reported the raising of $3.5 million through private placement. ImmuCell expects Q3 sales of $1.97 million and net operating earnings of $(25,000) to $75,000.

Shares of Consumer Portfolio Services, Inc. (NASDAQ: CPSS) were down 9 percent to $4.35 following Q3 results. CPS reported Q3 earnings of $0.26 per share on revenue of $108.5 million.

Edgewater Technology Inc. (NASDAQ: EDGW) was down, falling around 10 percent to $7.76. Edgewater reported preliminary Q3 service revenue of $27 million and total revenue of $30.8 million.


In commodity news, oil traded up 0.93 percent to $50.84 while gold traded up 0.28 percent to $1,260.10.

Silver traded up 0.72 percent Tuesday to $17.60, while copper rose 0.43 percent to $2.12.


European shares were higher today. The eurozone’s STOXX 600 gained 1.58 percent, the Spanish Ibex Index rose 1.57 percent, while Italy’s FTSE MIB Index gained 1.82 percent. Meanwhile the German DAX climbed 1.44 percent, and the French CAC 40 surged 1.38 percent while U.K. shares rose 0.90 percent.


The Consumer Price Index rose 0.3 percent for September, versus economists’ expectations for a 0.3 percent growth.

The National Association of Home Builders’ housing market index declined to 63 for October, versus a prior reading of 65. Economists were expecting a reading of 63 for the month.

The Treasury is set to auction 4-week bills at 11:30 a.m. ET.

The Treasury International Capital data for August will be released at 4:00 p.m. ET.

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


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