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Mid-Morning Market Update: Markets Mostly Lower; Morgan Stanley Earnings Miss Estimates

LPCN, T.NDM, SIG

Following the market opening Thursday, the Dow traded down 0.23 percent to 24,150.86 while the NASDAQ climbed 0.06 percent to 7,038.80. The S&P also fell, dropping 0.07 percent to 2,614.30.

Leading and Lagging Sectors

Thursday morning, the materials shares rose 0.3 percent. Meanwhile, top gainers in the sector included Sibanye Gold Limited (NYSE: SBGL) up 5 percent, and Northern Dynasty Minerals Ltd. (NYSE: NAK) up 4 percent.

In trading on Thursday, financial shares fell 0.7 percent.

Top Headline

Morgan Stanley (NYSE: MS) reported a top-and-bottom line miss in its fourth quarter.

Morgan Stanley said it earned 80 cents per share in the fourth quarter on revenue of $8.548 billion versus expectations of 92 cents per share on revenue of $9.43 billion.

Net income during the quarter improved from $643 million from the same quarter last year to $1.5 billion although this quarter's performance included an intermittent net discrete tax benefit of $111 million and last year's income included a similar benefit of $1 billion.

Equities Trading UP

Lipocine Inc. (NASDAQ: LPCN) shares got a boost, shooting up 39 percent to $2.224 following the release of results from a study evaluating LPCN 1144, its pipeline asset for non-alcoholic steatohepatitis, or NASH. Lipocine announced Thursday that eight-week top-line, interim results from an ongoing 16-week liver fat imaging study of LPCN 1144 showed an absolute mean reduction from the baseline of 7. 6-percent liver fat and a 38-percent relative mean liver fat reduction from baseline.

Shares of Correvio Pharma Corp. (NASDAQ: CORV) shot up 29 percent to $2.9433 after the company said it does not plan to sell more shares through its at-the-money offering.

TravelCenters of America LLC (NASDAQ: TA) shares were also up, gaining 17 percent to $4.76 after Hospitality Properties Trust agreed to sell 20 travel centers for $308.2 million.

 

Equities Trading DOWN

Signet Jewelers Limited (NYSE: SIG) shares dropped 22 percent to $25.92 after the company reported a weak same store sales growth outlook for Q4.

Shares of Earthstone Energy, Inc. (NYSE: ESTE) were down 15 percent to $5.74. Earthstone reported FY18 sales volume of 9,930 barrels of oil equivalent/day, up 26 percent year over year. The company expects FY19 average daily production of 11,000-12,000 barrels of oil equivalent/day.

ToughBuilt Industries, Inc. (NASDAQ: TBLT) was down, falling around 16 percent to $2.70 after surging 156.80 percent on Wednesday.

 

Commodities

In commodity news, oil traded down 2 percent to $51.25 while gold traded down 0.07 percent to $1,292.90.

Silver traded down 0.53 percent Thursday to $15.555, while copper fell 0.3 percent to $2.6655.

 

Eurozone

European shares were lower today. The eurozone’s STOXX 600 dropped 0.29 percent, the Spanish Ibex Index fell 0.14 percent, while Italy’s FTSE MIB Index dipped 0.33 percent. Meanwhile the German DAX dropped 0.43 percent, and the French CAC 40 fell 0.47 percent while U.K. shares fell 0.83 percent.

Economics

The Philly Fed's manufacturing index rose to 17.00 for January, versus December reading of 9.10. However, economists were expecting a reading of 9.70.

Initial jobless claims fell 3,000 to 213,000 in the latest week. Economists were projecting a reading of 219,000.

The Energy Information Administration’s weekly report on natural gas stocks in underground storage is schedule for release at 10:30 a.m. ET.

Federal Reserve Board of Governors Vice Chairman for Supervision Randal Quarles is set to speak in New York, NY at 10:45 a.m. ET.

The Treasury is set to auction 4-and 8-week bills at 11:30 a.m. ET.

Data on money supply for the recent week will be released at 4:30 p.m. ET.



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