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-Afternoon Market Update: Accuride Jumps Following Acquisition Announcement; Lululemon Shares Slide

PI, LULU, CUK, SIEB, PAY

 


Toward the end of trading Friday, the Dow traded up 0.26 percent to 18,467.21 while the NASDAQ gained 0.23 percent to 5,239.41. The S&P also rose, gaining 0.29 percent to 2,177.14.

Leading and Lagging Sectors

Friday afternoon, energy shares surged by 1.53 percent. Meanwhile, top gainers in the sector included Pioneer Energy Services Corp (NYSE: PES), and Resolute Energy Corp (NYSE: REN).

In trading on Friday, cyclical consumer goods & services shares rose by just 0.02 percent. Meanwhile, top losers in the sector included Lululemon Athletica inc. (NASDAQ: LULU), down 9 percent, and Carnival plc (ADR) (NYSE: CUK), down 5 percent.

Top Headline

Lululemon Athletica inc. (NASDAQ: LULU) reported in-line earnings for the second quarter, but revenue missed analysts’ estimates. The company issued a weak earnings forecast for the current quarter.

While EPS of $0.38 were in-line with the Street’s consensus, revenue of $514.5 million missed estimates by $970,000, despite having surged 13.6 percent year-over-year.

For the third quarter, management expects revenues of $535 million to $545 million, versus estimates of $541 million, and EPS of $0.42 to $0.44, mostly below the Street’s consensus of $0.44. For the full year, the team envisions sales of $2.32 billion to $2.35 billion, somewhat in line with expectations for $2.34 billion, and EPS of $2.11 to $2.19, which compare to estimates of $2.15.


Equities Trading UP

Accuride Corporation (NYSE: ACW) shares shot up 58 percent to $2.62 as the company agreed to be acquired by Crestview Partners for $2.58 per share in cash.

Shares of Siebert Financial Corp. (NASDAQ: SIEB) got a boost, shooting up 30 percent to $1.51. Kennedy Cabot Acquisitoin agreed to acquire around 90 percent of Siebert stock.

IMPINJ Inc (NASDAQ: PI) shares were also up, gaining 21 percent to $33.22. Pacific Crest maintained an Overweight rating on IMPINJ, while raising the price target from $24 to $29.


Equities Trading DOWN

VeriFone Systems Inc (NYSE: PAY) shares dropped 17 percent to $16.74. VeriFone reported upbeat earnings for its third quarter, but sales missed expectations. The company also lowered its guidance for 2016.

Shares of Lululemon Athletica inc. (NASDAQ: LULU) were down 9 percent to $69.62. Lululemon reported in-line earnings for the second quarter, but revenue missed analysts’ estimates. The company also issued a weak earnings forecast for the current quarter.

ChemoCentryx Inc (NASDAQ: CCXI) was down, falling around 16 percent to $4.45 as the company reported initial results from ongoing Phase Ib clinical trial of CCX872 in patients with advanced pancreatic cancer.


Commodities


In commodity news, oil traded up 3.29 percent to $44.58 while gold traded up 0.71 percent to $1,326.40.

Silver traded up 2.36 percent Friday to $19.39, while copper rose 0.07 percent to $2.08.

Eurozone

European shares closed higher today. The eurozone’s STOXX 600 rose 1.97 percent, the Spanish Ibex Index rose 1.67 percent, while Italy’s FTSE MIB Index surged 1.54 percent. Meanwhile the German DAX rose 1.42 percent, and the French CAC 40 rose 2.31 percent while U.K. shares rose 2.2 percent.

Economics

The U.S. economy added 151,000 jobs in August, while the unemployment rate came in unchanged at 4.9 percent. Economists were expecting a gain of 180,000 jobs for the month.

The U.S. trade deficit declined around 12 percent to $39.5 billion in July. However, economists were projecting the trade gap to reach $40 billion for the month. U.S. exports gained 1.9 percent to $186.3 billion, while imports slipped 0.8 percent to $225.8 billion.

U.S. factory orders rose 1.90 percent for July, versus economists’ expectations for a 2.00 percent growth.



Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today