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Mid-Day Market Update: Dow Down 100 Points; Pacific Biosciences of California Shares Spike Higher

AAPL, FSTR, ILMN, LOCO, NWL, PACB, WW

Midway through trading Friday, the Dow traded down 0.39 percent to 25,280 while the NASDAQ declined 1.07 percent to 7,354.80. The S&P also fell, dropping 0.65 percent to 2,722.57.

Leading and Lagging Sectors

On Friday, the consumer discretionary shares rose 1.3 percent. Meanwhile, top gainers in the sector included Newell Brands Inc (NYSE: NWL) up 15 percent, and El Pollo LoCo Holdings Inc (NASDAQ: LOCO) up 16 percent.

In trading on Friday, information technology shares fell 1.1 percent.

Top Headline

Apple Inc. (NASDAQ: AAPL) reported stronger-than-expected earnings for its fourth quarter, but issued disappointing sales guidance for the holiday period.

Apple reported earnings of $2.91 per share, beating estimates of $2.78. Sales totaled $62.9 billion, which beat estimates of $61.48 billion by 2.31 percent. This represented an increase of 21.1 percent from Q4 2017. iPhone unit sales totaled 46.9 million, which increased 29 percent year-over-yea but slightly missed analysts expectations of 47.5 million.

Apple sees Q1 sales in a range of $89-$93 billion against a $92.91 billion estimate. The company sees Q1 gross margin 38-38.5 percent.

 

Equities Trading UP

Pacific Biosciences of California, Inc. (NASDAQ: PACB) shares shot up 67 percent to $7.525. Pacific Biosciences announced an agreement to be bought by bigger rival Illumina, Inc. (NASDAQ: ILMN) in a deal valued at about $1.2 billion, or $8 per share in cash. The per share value represented a 77 percent premium over the $4.51 at which Pacific Biosciences shares closed Thursday.

Shares of L.B. Foster Company (NASDAQ: FSTR) got a boost, shooting up 18 percent to $20.01 following Q3 results. L.B. Foster posted Q3 earnings of $0.47 per share on sales of $167.1 million.

Cardtronics plc (NASDAQ: CATM) shares were also up, gaining 16 percent to $32.25 after reporting upbeat third-quarter earnings.

Equities Trading DOWN

Puma Biotechnology, Inc. (NASDAQ: PBYI) shares dropped 50 percent to $19.27 after the company's Nerlynx sales were lower than expected.

Shares of Adverum Biotechnologies, Inc. (NASDAQ: ADVM) were down 28 percent to $3.26 after the company's A1AT measurements 'did not reach clinically meaningful levels of expression.'

Weight Watchers International, Inc. (NYSE: WTW) was down, falling around 28 percent to $49.39 following Q3 earnings and sales miss.

Commodities

In commodity news, oil traded down 0.94 percent to $63.09 while gold traded down 0.31 percent to $1,234.70.

Silver traded up 0.29 percent Friday to $14.82, while copper rose 2.87 to $2.7995.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 climbed 0.39 percent, the Spanish Ibex Index rose 0.46 percent, while Italy’s FTSE MIB Index rose 1.06 percent. Meanwhile the German DAX climbed 0.77 percent, and the French CAC 40 climbed 0.5 percent while U.K. shares rose 0.02 percent.

Economics

The U.S. economy added 250,000 new jobs in October, while the unemployment rate remained at 3.7 percent. Economists expected an increase of 193,000 nonfarm jobs.

U.S. trade deficit increased 1.3 percent in September to $54 billion, versus a revised $53.3 billion in August. However, economists were projecting a $53.6 billion deficit. Imports gained 1.5 percent to $266.6 billion, while exports rose 1.5 percent to $212.6 billion for September.

U.S. factory orders rose 0.7 percent for September, versus economists’ expectations for a 0.5 percent gain.

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



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