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Mid-Morning Market Update: Markets Open Lower; Joy Global Profit Tops Expectations

TTI, BWEN, AMWD, CONN, RPRX

Following the market opening Thursday, the Dow traded down 0.43 percent to 17,713.79 while the NASDAQ declined 0.49 percent to 4,927.82. The S&P also fell, dropping 0.46 percent to 2,089.64.

Leading and Lagging Sectors

Thursday morning, the healthcare sector proved to be a source of strength for the market. Leading the sector was strength from Keryx Biopharmaceuticals (NASDAQ: KERX) and Immunomedics, Inc. (NASDAQ: IMMU).

In trading on Thursday, energy shares fell by 0.89 percent. Meanwhile, top losers in the sector included Denbury Resources Inc. (NYSE: DNR), down 4 percent, and TETRA Technologies, Inc. (NYSE: TTI), down 5 percent.

Top Headline

Joy Global Inc. (NYSE: JOY) reported stronger-than-expected Q2 earnings. However, its revenue failed to meet the Street analysts' estimations.

Joy Global reported a net loss of $15.3 million or a loss of $0.16 a share for the second quarter compared to net income of $55.9 million or $0.57 a share in the year-ago quarter. On an adjusted basis, earnings from continuing operations plunged to $0.09 a share from $0.64 a share in the previous year quarter. Street analysts' expected the company to report break-even per share. The company's net sales dropped 26 percent to $602 million from $810 million in the year earlier quarter. Street predicted the company to generate revenue of $607.72 million.

Going forward, the company expects sales and earnings for the year excluding restructuring charges and mark-to-market pension adjustments to be at the lower end of its earlier forecasted range of $2.4-$2.6 billion for sales and $0.10 to $0.50 for adjusted earnings per fully diluted share.

Equities Trading UP

Achaogen Inc (NASDAQ: AKAO) shares shot up 59 percent to $5.09. Achaogen raised $25 million in private placement and has been awarded a $20 million contract option by the BARDA to support the development of plazomicin.

Shares of Repros Therapeutics Inc (NASDAQ: RPRX) got a boost, shooting up 25 percent to $2.12 after reporting success of its Enclomiphene drug to treat secondary hypogonadism. The Drug is on track for registration decision in Fall 2017.

Broadwind Energy Inc. (NASDAQ: BWEN) shares were also up, gaining 20 percent to $5.04 after signing a $137 million wind turbine tower supply agreement.

Equities Trading DOWN

Conn's Inc (NASDAQ: CONN) shares dropped 23 percent to $9.07. Conn's posted a Q1 loss of $0.31 per share on revenue of $389.1 million.

Shares of DeVry Education Group Inc (NYSE: DV) were down 13 percent to $15.84. DeVry Education named Patrick Unzicker as its Chief Financial Officer. Credit Suisse downgraded DeVry from Outperform to Neutral and lowered the price target from $25.00 to $17.00.

American Woodmark Corporation (NASDAQ: AMWD) was down, falling around 12 percent to $71.20 as the company reported weaker-than-expected quarterly earnings.

Commodities

In commodity news, oil traded down 1.75 percent to $48.15 while gold traded down 0.05 percent to $1,214.10.

Silver traded up 0.30 percent Thursday to $15.98, while copper fell 0.51 percent to $2.06.

Eurozone

European shares were mixed today. The eurozone's STOXX 600 slipped 0.17 percent, the Spanish Ibex Index rose 0.97 percent, while Italy's FTSE MIB Index gained 0.13 percent. Meanwhile the German DAX dropped 0.21 percent, and the French CAC 40 declined 0.46 percent, while U.K. shares fell 0.29 percent.

Economics

U.S. initial jobless claims slipped 1,000 to 267,000 in the recent week. However, economists were projecting claims to reach 2.70,000 in the week.

Private-sector employers added 173,000 jobs in May, according to the Automatic Data Processing Inc. However, economists were expecting a gain of 175,000 jobs.



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