Mid-Morning Market Update: Markets Mixed; Emerson Electric Profit Beats Views

Following the market opening Tuesday, the Dow traded up 0.08% to 27485.22 while the NASDAQ fell 0.09% to 8,425.80. The S&P also fell, dropping 0.15% to 3,073.74.

Leading and Lagging Sectors

Energy shares climbed 0.7% on Tuesday. Meanwhile, top gainers in the sector included HighPoint Resources Corporation HPR, up 11%, and Carrizo Oil & Gas, Inc. CRZO, up 12%.

In trading on Tuesday, real estate shares fell 1.4%.

Top Headline

Emerson Electric Co EMR reported better-than-expected earnings for its fourth quarter, while sales missed estimates.

Emerson Electric reported first-quarter earnings of $1.16 per share, which beat the analyst consensus estimate of $1.08 per share. The company posted quarterly sales of $4.97 billion, versus analysts’ estimates of $5.04 billion.

Emerson Electric said it expects FY19 adjusted EPS of $3.69 per shares, versus analysts’ estimates of $3.63. The company projects FY20 adjusted EPS of $3.48-$3.72, versus analysts’ views of $3.74. The company also announced plans to raise dividend by 4% in 2020.

Equities Trading UP

Fulgent Genetics, Inc. FLGT shares shot up 38% to $12.98 after the company reported better-than-expected Q3 EPS and sales results.

Shares of EverQuote, Inc. EVER got a boost, shooting up 27% to $27.61 after the company reported better-than-expected Q3 EPS and sales results. The company also issued Q4 sales guidance above estimates and raised FY19 sales guidance above estimates.

NextCure, Inc. NXTC shares were also up, gaining 28% to $33.80.

Equities Trading DOWN

Myriad Genetics, Inc. MYGN shares tumbled 39% to $21.40 after the company reported Q1 EPS of $0.08 compared to the $0.32 estimate and worse-than-expected Q1 sales results. The company also issued Q2 and FY20 EPS and sales results below analyst estimates.

Shares of Strongbridge Biopharma plc SBBP were down 30% to $1.69 after the company reported CEO transition plan and issued preliminary Q3 financial results and corporate updates.

Neuronetics, Inc. . STIM was down, falling 28% to $6.47 after the company reported downbeat Q3 sales and issued weak sales forecast.
 

Commodities


In commodity news, oil traded up 0.7% to $56.92, while gold traded down 0.5% to $1,503.60.

Silver traded down 0.4% Tuesday to $18.00, while copper rose 0.4% to $2.6805.

Euro zone


European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.1%, the Spanish Ibex Index fell 0.2%, while Italy’s FTSE MIB Index climbed 0.3%. Meanwhile, the German DAX gained 0.1%, and the French CAC 40 rose 0.2% while UK shares rose 0.3%.

Economics

U.S. trade deficit declined around 5% to $52.5 billion in September, versus a revised $55 billion in August. Imports of goods declined around 1% to $206 billion, while exports fell 1.7% to $258.4 billion.

The Johnson Redbook Retail Sales Index rose 0.3% during the first four weeks of October versus September.

The IHS Markit services PMI slipped to 50.6 in October, compared to a preliminary estimate of 51 and versus a reading of 50.9 in September.

The ISM non-manufacturing index climbed to 54.7 in October, versus 52.6 in the prior month.

The number of job openings dropped to 7.024 million in September, versus a revised 7.3 million in the prior month.

The Treasury is set to auction 52-week bills at 11:30 a.m. ET.

Dallas Federal Reserve Bank President Robert Kaplan is set to speak in Dallas, Texas at 12:40 p.m. ET.

The Treasury will auction 3-year notes at 1:00 p.m. ET.

Minneapolis Federal Reserve Bank President Neel Kashkari will speak in Minneapolis, Minnesota at 6:00 p.m. ET.