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Mid-Morning Market Update: Markets Open Mixed; Cognizant Earnings Beat Views

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Following the market opening Friday, the Dow traded down 0.10 percent to 20,929.75 while the NASDAQ rose 0.04 percent to 6,077.86. The S&P also rose, gaining 0.07 percent to 2,391.25.

Leading and Lagging Sectors

Telecommunications services sector was the top gainer in the US market on Friday. Top gainers in the sector included United States Cellular Corp (NYSE: USM), Telephone & Data Systems, Inc. (NYSE: TDS), and PLDT Inc (ADR) (NYSE: PHI).

In trading on Friday, healthcare shares were relative laggards, down on the day by about 0.18 percent. Meanwhile, top losers in the sector included Cerus Corporation (NASDAQ: CERS), down 6 percent, and Progenics Pharmaceuticals, Inc. (NASDAQ: PGNX), down 6 percent.

Top Headline

Cognizant Technology Solutions Corp (NASDAQ: CTSH) posted upbeat earnings for its first quarter on Friday.

Cognizant said it earned $0.84 per share in the first quarter on revenue of $3.55 billion; Analysts were expecting the company to earn $0.83 per share on revenue of $3.52 billion.

Cognizant expects Q2 adjusted earnings of at least $0.89 per share, and sales of $3.63 billion to $3.68 billion. It also projects FY17 adjusted earnings of at least $3.64 per share, and sales of $14.56 billion to $14.84 billion.

 

Equities Trading UP

Immunomedics, Inc. (NASDAQ: IMMU) shares shot up 24 percent to $6.69. Immunomedics reported a mutual deal with Seattle Genetics for dissolving of previously-agreed upon exclusive global licensing deal. The company announced that CFO Michael Garone will be named interim CEO once the settlement deal is finalized. Immunomedics is now targeting BLA submission for IMMU-132 in mTNBC by late 2017 or early 2018. The company also disclosed that it has raised $125 million in a private placement.

Shares of California Resources Corp (NYSE: CRC) got a boost, shooting up 23 percent to $12.51 after the company reported upbeat Q1 profit.

Universal Display Corporation (NASDAQ: OLED) shares were also up, gaining 17 percent to $105.40. Universal Display reported Q1 earnings of $0.22 per share on revenue of $55.6 million. The company also issued a strong forecast.

Equities Trading DOWN

Ampliphi Biosciences Corp (NYSE: APHB) shares dropped 57 percent to $1.20. AmpliPhi Biosciences disclosed the pricing of its 6.95 million share offering of common stock and warrants.

Shares of Brightcove Inc (NASDAQ: BCOV) were down around 33 percent to $5.85 after the company reported a wider-than-expected Q1 loss and issued a weak FY17 forecast. B. Riley downgraded Brightcove from Buy to Neutral.

Regulus Therapeutics Inc (NASDAQ: RGLS) was down, falling around 22 percent to $1.33 after the company posted a larger-than-expected loss for its first quarter. The company also disclosed that it has completed dosing of RG-012 in Phase 1 study.

Commodities

In commodity news, oil traded down 1.14 percent to $45.00 while gold traded up 0.20 percent to $1,231.10.

Silver traded up 0.23 percent Friday to $16.34, while copper fell 0.02 percent to $2.511.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 declined 0.09 percent, the Spanish Ibex Index rose 0.01 percent, while Italy’s FTSE MIB Index gained 0.44 percent. Meanwhile the German DAX slipped 0.27 percent, and the French CAC 40 climbed 0.05 percent while U.K. shares rose 0.10 percent.

Economics

The U.S. economy added 211,000 new jobs in April. However, economists were expecting a gain of 185,000 nonfarm jobs. The unemployment rate declined to 4.4 percent from 4.5 percent.

Vice Chairman Stanley Fischer is set to speak in Stanford, California at 11:30 a.m. ET.

San Francisco Federal Reserve Bank President John Williams will speak in New York at 12:45 p.m. ET.

The Baker Hughes North American rig count report for the latest week is schedule for release at 1:00 p.m. ET.

Federal Reserve Chair Janet Yellen is set to speak in Providence, Rhode Island at 1:30 p.m. ET.

Chicago Federal Reserve Bank President Charles Evans, St. Louis Federal Reserve Bank President James Bullard, and Boston Federal Reserve Bank President Eric Rosengren will speak in Stanford, California at 1:30 p.m. ET.

Data on consumer credit for the recent week will be released at 3:00 p.m. ET.

 

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