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Mid-Day Market Update: Dow Drops Over 100 Points; Gap Shares Rise Following September Sales Numbers

LPCN, ERII, GAP, V.ZZE.H, NEE, SIMO, HON, VIVE, ELRA

 


Midway through trading Friday, the Dow traded down 0.59 percent to 18,161.57 while the NASDAQ declined 0.73 percent to 5,268.25. The S&P also fell, dropping 0.70 percent to 2,145.72.

Leading and Lagging Sectors

On Friday, utilities shares slipped by just 0.3 percent. Meanwhile, top gainers in the sector included NextEra Energy Inc (NYSE: NEE), and Calpine Corporation (NYSE: CPN).

In trading on Friday, industrial shares tumbled by 1.5 percent. Meanwhile, top losers in the sector included Honeywell International Inc. (NYSE: HON), down 8 percent, and Energy Recovery, Inc. (NASDAQ: ERII), down 6 percent.

Top Headline

Silicon Motion Technology Corp. (ADR) (NASDAQ: SIMO) lifted its outlook for the third quarter.

The company indicated that its revenue growth would likely be 11–13 percent sequentially compared to its initial guidance of 0–5 percent disclosed on July 22. Similarly, adjusted gross margin forecast is increased to 48–49 percent from the earlier outlook of 46–48 percent.

Silicon Motion will release its third quarter results on October 27 after the market closes; the conference call is scheduled for the next day.

Equities Trading UP

Lipocine Inc (NASDAQ: LPCN) shares shot up 31 percent to $5.47. H.C. Wainwright initiated coverage on Lipocine with a Buy rating and a $25.00 price target.

Shares of Viveve Medical Inc (NASDAQ: VIVE) got a boost, shooting up 8 percent to $7.25 after the company reported the FDA clearance for the Viveve System.

Gap Inc (NYSE: GPS) shares were also up, gaining 15 percent to $26.27. Gap reported a 3 percent decline in its September same-store sales. Its total sales for the month fell 2 percent.


Equities Trading DOWN

Clovis Oncology Inc (NASDAQ: CLVS) shares dropped 14 percent to $30.72 after the company disclosed its oral presentation of the primary efficacy and safety data for rucaparib from its NDA dataset at the 2016 ESMO Congress. The company indicated that the drug candidate is under FDA's priority review for the treatment of monotherapy of advanced ovarian cancer in patients with BRCA-mutated tumors inclusive of germline and somatic BRCA mutations. The submission date for PDUFA is February 23, 2017.

Shares of Ruby Tuesday, Inc. (NYSE: RT) were down 15 percent to $2.14 as the company posted a wider-than-expected loss for its first quarter on Thursday.

Biostage Inc (NASDAQ: BSTG) was down, falling around 15 percent to $0.940 after the company issued a regulatory update on Cellspan Esophageal Implant.


Commodities


In commodity news, oil traded down 0.63 percent to $50.12 while gold traded down 0.60 percent to $1,245.50.

Silver traded down 0.92 percent Friday to $17.19, while copper rose 0.26 percent to $2.16.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 declined 0.85 percent, the Spanish Ibex Index fell 1.40 percent, while Italy’s FTSE MIB Index fell 0.55 percent. Meanwhile the German DAX fell 0.66 percent, and the French CAC 40 declined 0.60 percent while U.K. shares rose 0.63 percent.

Economics

The U.S. economy added 156,000 new jobs in September, while the unemployment rate increased to 5 percent from 4.9 percent. Economists were expecting an addition of 175,000 jobs for September.

U.S. wholesale inventories declined 0.20 percent for August, versus economists’ expectations for a 0.10 percent drop.

Cleveland Federal Reserve President Loretta Mester will speak in New York at 12:45 p.m. ET.

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

Kansas City Fed's Esther George is set to speak in Washington DC at 3:00 p.m. ET.

Data on consumer credit for August will be released at 3:00 p.m. ET.

Federal Reserve Board Governor Lael Brainard will speak in Washington DC at 4:00 p.m. ET.



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