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Mid-Morning Market Update: Markets Open Higher; General Electric Earnings Miss Expectations

HLGN, DGLY, TEAM

Following the market opening Friday, the Dow traded up 0.30 percent to 23,231.48 while the NASDAQ climbed 0.49 percent to 6,637.41. The S&P also rose, gaining 0.34 percent to 2,570.90.

Leading and Lagging Sectors

Friday morning, the technology shares surged 0.68 percent. Meanwhile, top gainers in the sector included athenahealth, Inc (NASDAQ: ATHN), up 11 percent, and Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC), up 9 percent.

In trading on Friday, healthcare shares fell 0.25 percent. Meanwhile, top losers in the sector included Celgene Corporation (NASDAQ: CELG), down 10 percent, and Synergy Pharmaceuticals Inc (NASDAQ: SGYP) down 4 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

Digital Ally, Inc. (NASDAQ: DGLY) shares shot up 38 percent to $3.05. Digital Ally and VIEVU, LLC entered into a supply agreement which provides VIEVU exclusive right to integrate the VuLInk system in its body camera products.

Shares of Skechers USA Inc (NYSE: SKX) got a boost, shooting up 35 percent to $32.47 as the company reported better-than-expected results for its third quarter on Thursday.

Atlassian Corporation PLC (NASDAQ: TEAM) shares were also up, gaining 23 percent to $49.54 after the company reported first-quarter sales growth of 42 percent year over year.

Equities Trading DOWN

DURECT Corporation (NASDAQ: DRRX) shares dropped 58 percent to $0.831 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 21 percent to $12.16. Del Taco reported in-line Q3 earnings and narrowed its FY17 outlook.

NCR Corporation (NYSE: NCR) was down, falling around 11 percent to $33.27 after mixed Q3 results and reduced FY17 guidance.

Commodities

In commodity news, oil traded down 0.74 percent to $50.91 while gold traded down 0.45 percent to $1,284.20.

Silver traded down 0.38 percent Friday to $17.19, while copper rose 0.82 percent to $3.1935.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 climbed 0.28 percent, the Spanish Ibex Index rose 0.20 percent, while Italy’s FTSE MIB Index surged 0.78 percent. Meanwhile the German DAX gained 0.22 percent, and the French CAC 40 climbed 0.14 percent while U.K. shares rose 0.23 percent.

Economics

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

The Baker Hughes North American rig count report for the latest week is schedule for release at 1:00 p.m. ET.

Cleveland Federal Reserve Bank President Loretta Mester is set to speak in New York City at 2:00 p.m. ET.

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



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