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Mid-Morning Market Update: Markets Mostly Flat; Amazon Beats Q1 Expectations

ALGN, AMZN, HLGN, FCEL, TBBK, ZEUS, BTGOF, VOD

Following the market opening Friday, the Dow traded down 0.06 percent to 20,968.86 while the NASDAQ climbed 0.11 percent to 6,055.76. The S&P also fell, dropping 0.03 percent to 2,388.05.

Leading and Lagging Sectors

Friday morning, the energy sector proved to be a source of strength for the market. Leading the sector was strength from Southwestern Energy Company (NYSE: SWN) and Enbridge Energy Management, L.L.C. (NYSE: EEQ).

In trading on Friday, telecommunications services shares slipped by 0.40 percent. Meanwhile, top losers in the sector included Vodafone Group Plc (ADR) (NASDAQ: VOD), down 2 percent, and BT Group plc (ADR) (NYSE: BT), down 2 percent.

Top Headline

Amazon.com, Inc. (NASDAQ: AMZN) reported stronger-than-expected results for its first quarter on Thursday.

Amazon.com said it earned $1.48 per share in the first quarter on revenue of $35.7 billion; Analysts were expecting the company to earn $1.13 per share on revenue of $35.30 billion.

 

Equities Trading UP

Bancorp Inc (NASDAQ: TBBK) shares shot up 21 percent to $6.10 after the company reported strong earnings for its fourth quarter.

Shares of Olympic Steel, Inc. (NASDAQ: ZEUS) got a boost, shooting up 18 percent to $22.67. Olympic Steel reported a Q1 net income of $7.7 million, after posting a loss in the year-ago period.

Align Technology, Inc. (NASDAQ: ALGN) shares were also up, gaining 20 percent to 144.60 as the company posted better-than-expected quarterly results. Baird upgraded Align Technology from Neutral to Outperform.

Equities Trading DOWN

FuelCell Energy Inc (NASDAQ: FCEL) shares dropped 33 percent to $1.08. FuelCell Energy priced its $15.4 million underwritten public offering of common stock and warrants.

Shares of athenahealth, Inc (NASDAQ: ATHN) were down around 20 percent to $97.67 after the company reported weaker-than-expected quarterly results.

PCM Inc (NASDAQ: PCMI) was down, falling around 18 percent to $24.80. PCM posted Q1 earnings of $0.26 per share on revenue of $524.4 million. The company projects Q2 earnings of $0.44 to $0.49 per share, and revenue of $580 million to $600 million.

Commodities

In commodity news, oil traded up 1.47 percent to $49.69 while gold traded up 0.06 percent to $1,266.60.

Silver traded up 0.09 percent Friday to $17.35, while copper rose 0.39 percent to $2.603.

Eurozone

European shares were mixed today. The eurozone’s STOXX 600 declined 0.25 percent, the Spanish Ibex Index rose 0.44 percent, while Italy’s FTSE MIB Index rose 0.26 percent. Meanwhile the German DAX slipped 0.02 percent, and the French CAC 40 gained 0.10 percent while U.K. shares fell 0.36 percent.

Economics

U.S. GDP rose at an annual pace of 0.7 percent for the first quarter, versus economists’ expectations for a 1.2 percent growth.

The employment cost index increased 0.8 percent for the first quarter.

The Chicago PMI rose to 58.30 in April, versus a prior reading of 57.70. Economists expected a reading of 56.40.

The final reading of University of Michigan's consumer sentiment index slipped to 97.00 in April, versus a prior reading of 98.00. Economists were expecting a reading of 98.00.

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

Federal Reserve Board of Governor Lael Brainard is set to speak in Evanston, Illinois at 1:15 p.m. ET.

Philadelphia Federal Reserve Bank President Patrick Harker will speak in Washington, D.C. at 2:30 p.m. ET.



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