Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Mid-Day Market Update: Silicon Graphics Surges Following Acquisition News; Ocean Rig Shares Tumble

CHKR, HPE, DK, XCOMQ, RUN


Midway through trading Friday, the Dow traded down 0.18 percent to 18,580.61 while the NASDAQ declined 0.05 percent to 5,225.54. The S&P also fell, dropping 0.07 percent to 2,184.25.

Leading and Lagging Sectors

On Friday, the energy sector proved to be a source of strength for the market. Leading the sector was strength from Delek US Holdings, Inc. (NYSE: DK) and Chesapeake Granite Wash Trust (NYSE: CHKR).

In trading on Friday, basic materials shares slipped by 0.70 percent. Meanwhile, top losers in the sector included Handy & Harman Ltd (NASDAQ: HNH), down 8 percent, and Kraton Performance Polymers Inc (NYSE: KRA), down 5 percent.

Top Headline

J C Penney Company Inc (NYSE: JCP) reported a narrower-than-expected loss for the second quarter and reaffirmed its outlook for the full year 2016.

The departmental retailer delivered a 52 percent improvement in net loss to $56 million or a loss per share $0.18. On an adjusted basis, EPS improved 88 percent to a loss per share of $0.05 compared to a loss per share of $0.40 last year. Street estimate was for a loss of $0.15 a share.

J C Penney recorded 1.5 percent growth in total net sales from $2.875 billion to $2.918 billion in the second quarter thus missing analysts' predictions of $2.93 billion marginally. Comparable sales advanced 2.2 percent.


Equities Trading UP

Silicon Graphics International Corp (NASDAQ: SGI) shares shot up 29 percent to $7.69 after Hewlett Packard Enterprise Co (NYSE: HPE) announced plans to acquire the company for around $275 million.

Shares of Acacia Communications, Inc. (NASDAQ: ACIA) got a boost, shooting up 35 percent to $91.39 following Q2 results. Acacia Communications reported quarterly non-GAAP earnings of $0.77 per share on revenue of $116.2 million. The company expects Q3 non-GAAP earnings of $0.64 to $0.76 per share, on revenue of $120 million to $128 million.

Sunrun Inc (NASDAQ: RUN) shares were also up, gaining 18 percent to $6.41 as the company posted strong Q2 results.


Equities Trading DOWN

Ocean Rig UDW Inc. (NASDAQ: ORIG) shares dropped 54 percent to $1.00. Ocean Rig reported Q2 EPS $1.83 versus estimates of $0.72. Sales were $452.6 million versus estimates of $376.45 million. During the call, Chairman and CEO George Economou assured the company will focus on de-leveraging and maintaining liquidity, amidst "extremely negative" market conditions.

Shares of Concordia International Corp (NASDAQ: CXRX) were down 27 percent to $11.97 as the company announced second quarter earnings that missed the estimates. Aside from that, the company slashed its forecast for the full year and suspended dividend.

Xtera Communications Inc (NASDAQ: XCOM) was down, falling around 24 percent to $0.860. Xtera Communications reported a Q3 loss of $1.35 per share on revenue of $5.3 million.


Commodities


In commodity news, oil traded up 2.12 percent to $44.41 while gold traded up 0.56 percent to $1,357.60.

Silver traded up 0.67 percent Friday to $20.16, while copper fell 1.75 percent to $2.16.

Eurozone

European shares were mostly lower today. The eurozone's STOXX 600 dropped 0.13 percent, the Spanish Ibex Index declined 0.07 percent, while Italy's FTSE MIB Index gained 0.15 percent. Meanwhile the German DAX dropped 0.26 percent, and the French CAC 40 slipped 0.04 percent, while U.K. shares rose 0.02 percent.

Economics

The Producer Price Index declined 0.4 percent for July, versus economists' expectations for a 0.1 percent growth.

U.S. retail sales came in flat for July, versus economists' expectations for a 0.4 percent gain.

U.S. business inventories rose 0.2 percent for June, versus economists' expectations for a 0.10 percent gain.

The University of Michigan's consumer sentiment index rose to 90.40 in August, versus a prior reading of 90.00. However, economists were expecting a reading of 91.50.



Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today