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Mid-Afternoon Market Update: Skechers Jumps On Earnings Beat; Del Taco Shares Slide

TEAM, T.ENB, SJW

Toward the end of trading Friday, the Dow traded up 0.64 percent to 23,311.71 while the NASDAQ climbed 0.51 percent to 6,638.94. The S&P also rose, gaining 0.48 percent to 2,574.28.

Leading and Lagging Sectors

Friday afternoon, the technology shares surged 0.71 percent. Meanwhile, top gainers in the sector included DST Systems, Inc. (NYSE: DST), up 9 percent, and Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC), up 9 percent.

In trading on Friday, utilities shares fell 0.40 percent. Meanwhile, top losers in the sector included SJW Group (NYSE: SJW), down 3 percent, and Enbridge Inc (USA) (NYSE: ENB) down 2 percent.

Top Headline

General Electric Company (NYSE: GE) reported weaker-than-expected earnings for its third quarter and lowered its FY17 earnings outlook.

General Electric posted quarterly adjusted earnings of $0.29 per share on revenue of $33.47 billion. However, analysts expected earnings of $0.49 per share on revenue of $32.7 billion.

GE lowered its FY17 adjusted earnings outlook from $1.60-$1.70 per share, to $1.05-$1.10 per share.

Equities Trading UP

CAI International Inc (NYSE: CAI) shares shot up 15 percent to $35.87 as the company posted strong Q3 earnings.

Shares of Skechers USA Inc (NYSE: SKX) got a boost, shooting up 39 percent to $33.35 as the company reported better-than-expected results for its third quarter on Thursday. Wedbush upgraded Skechers from Neutral to Outperform.

Atlassian Corporation PLC (NASDAQ: TEAM) shares were also up, gaining 23 percent to $49.66 after the company reported first-quarter sales growth of 42 percent year over year.

Equities Trading DOWN

DURECT Corporation (NASDAQ: DRRX) shares dropped 61 percent to $0.761 as the company disclosed that its PERSIST Phase 3 trial of POSIMIR did not meet primary efficacy endpoint. Stifel Nicolaus downgraded Durect from Buy to Hold.

Shares of Del Taco Restaurants Inc (NASDAQ: TACO) were down 19 percent to $12.47. Del Taco reported in-line Q3 earnings and narrowed its FY17 outlook.

Concordia International Corp (NASDAQ: CXRX) was down, falling around 34 percent to $0.610. Concordia filed for debt restructuring in Canada.

Commodities

In commodity news, oil traded up 0.33 percent to $51.46 while gold traded down 0.74 percent to $1,280.40.

Silver traded down 1.19 percent Friday to $17.05, while copper fell 0.05 percent to $3.166.

Eurozone

European shares closed higher today. The eurozone’s STOXX 600 climbed 0.26 percent, the Spanish Ibex Index rose 0.25 percent, while Italy’s FTSE MIB Index surged 0.97 percent. Meanwhile the German DAX gained 0.01 percent, and the French CAC 40 climbed 0.08 percent while U.K. shares rose 0.01 percent.

Economics

Sales of existing homes rose 0.7 percent to an annual rate of 5.39 million for September. However, economists were expecting a 5.31 million rate.

The total number of active U.S. oil rigs declined by 7 to 736 rigs this week, Baker Hughes Inc reported.

Federal Reserve Chair Janet Yellen will speak in Washington at 7:30 p.m. ET.



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