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-Morning Market Update: Markets Open Higher; Big Lots Earnings Top Estimates

BIGGQ, STAF, ULTA, GME, ESINQ, DRD

 


Following the market opening Friday, the Dow traded up 0.40 percent to 18,522.57 while the NASDAQ rose 0.36 percent to 5,230.75. The S&P also rose, gaining 0.34 percent to 2,179.91.

Leading and Lagging Sectors

Friday morning, basic materials shares gained by 0.85 percent. Meanwhile, top gainers in the sector included A Schulman Inc (NASDAQ: SHLM), and DRDGOLD Ltd. (ADR) (NYSE: DRD).

In trading on Friday, cyclical consumer goods & services shares rose by just 0.08 percent. Meanwhile, top losers in the sector included GameStop Corp. (NYSE: GME), down 7 percent, and Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA), down 6 percent.

Top Headline

Big Lots, Inc. (NYSE: BIG) reported better-than-expected second quarter earnings and boosted its full year earnings forecast.

The retailer's net income increased from $17.64 million to $22.72 million and EPS from $0.35 to $0.51. On an adjusted basis, it would have earned $0.52 a share, which is $0.06 a share more than the analysts' estimates of $0.46.

Big Lots' net sales were $1.203 billion compared to $1.209 billion in the previous year quarter. Analysts expected $1.22 billion revenue. Its comparable store sales rose 0.3 percent in the second quarter.

Going forward, the retailer offered guidance of an adjusted loss of $0.04 a share – adjusted income of $0.01 a share for the third quarter. Street expects the company to suffer a loss per share of $0.01. For the full year, Big Lots boosted its adjusted EPS forecast from $3.35-$3.45 to $3.45-$3.55. Analysts are looking for an EPS of $3.47.


Equities Trading UP

Petroquest Energy Inc (NYSE: PQ) shares shot up 32 percent to $2.32 as the company reported private exchange offers and a consent solicitation for its outstanding 10% Senior Notes due 2017 and its outstanding 10% Second Lien Senior Secured Notes due 2021. The company announced an entry into commitment letter for four year $50 million term loan facility. Johnson Rice upgraded Petroquest Energy from Accumulate to Buy.

Shares of Staffing 360 Solutions Inc (NASDAQ: STAF) got a boost, shooting up 16 percent to $1.50. Staffing 360 Solutions is scheduled to release financial results for the fiscal year ended May 31, 2016 on Monday, August 29, 2016.

Bottomline Technologies (NASDAQ: EPAY) shares were also up, gaining 12 percent to $23.37 as the company posted better-than-expected Q4 results.


Equities Trading DOWN

ITT Educational Services, Inc. (NYSE: ESI) shares dropped 57 percent to $0.600 amid news that the U.S. Department of Education will have increased oversight for the company.

Shares of Aceto Corporation (NASDAQ: ACET) were down 18 percent to $21.02 as the company posted weak Q4 results.

Talend SA ADR (NASDAQ: TLND) was down, falling around 10 percent to $27.31. Talend reported a Q2 loss of $2.02 per share on revenue of $25.4 million, and issued a weak earnings forecast.

 

Commodities


In commodity news, oil traded up 0.04 percent to $47.35 while gold traded up 0.62 percent to $1,332.80.

Silver traded up 0.99 percent Friday to $18.80, while copper rose 0.34 percent to $2.09.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 rose 0.11 percent, the Spanish Ibex Index gained 0.41 percent, while Italy’s FTSE MIB Index gained 0.22 percent. Meanwhile the German DAX gained 0.04 percent, and the French CAC 40 climbed 0.35 percent, while U.K. shares rose 0.15 percent.

Economics

The U.S. economy grew at an annual rate of 1.1 percent in the second quarter, versus a prior reading of a 1.2 percent growth. Economists were projecting a 1.1 percent growth.

The U.S. trade deficit narrowed to $59.3 billion in July, versus $64.5 billion in June. However, economists were expecting a $62.5 billion deficit. Exports increased by $2.9 billion for the month, while imports declined by $2.4 billion.

The University of Michigan's consumer sentiment for August is schedule for release at 10:00 a.m. ET.

Federal Reserve Chair Janet Yellen is set to speak at Kansas City Fed's monetary policy symposium, in Jackson Hole, Wyoming at 10:00 a.m. ET.

The Baker Hughes North American rig count report for the recent week will be released at 1:00 p.m. ET.



Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today