Mid-Afternoon Market Update: Precision Castparts Slides After Weak Q3 Outlook; Schlumberger Shares Spike Higher

Garrett Cook
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Toward the end of trading Friday, the Dow traded up 0.53 percent to 17,412.13 while the NASDAQ gained 0.77 percent to 4,605.85. The S&P also rose, gaining 0.78 percent to 2,008.11.

Leading and Lagging Sectors

In trading on Friday, energy shares rose by 2.38 percent. Meanwhile, top gainers in the sector included Baytex Energy Corp. (NYSE: BTE), up 12.9 percent, and Goodrich Petroleum Corp. (NYSE: GDP), up 9.5 percent.

Industrials shares rose by just 0.3 percent in the US market on Friday. Top losers in the sector included Precision Castparts Corp. (NYSE: PCP), down 9.9 percent, Knightsbridge Shipping Limited (NASDAQ: VLCCF), off 3.7 percent.

Top Headline

Goldman Sachs Group Inc. (NYSE: GS) reported a drop in its earnings for the fourth quarter.

The New York-based bank reported a quarterly profit of $2.17 billion, versus a year-ago profit of $2.33 billion. On a per-share basis, the bank’s profit was $4.38, down from $4.60.

Its revenue declined to $7.69 billion from $8.78 billion. However, analysts were expecting a profit of $4.32 per share on revenue of $7.64 billion. Net revenue in Institutional Client Services slipped 8% to $3.15 billion. Net revenue in Fixed Income, Currency and Commodities Client Execution dropped 29% to $1.22 billion, while net revenue in Equities gained 15% to $1.93 billion.

Equities Trading UP

Courier Corporation (NASDAQ: CRRC) shares shot up 36.09 percent to $19.72 after Quad/Graphics Inc (NASDAQ: QUAD) announced its plans to acquire Courier for $20.50 per share.

Shares of DepoMed Inc. (NASDAQ: DEPO) got a boost, shooting up 11.25 percent to $19.64 after the company announced its plans to acquire the U.S. rights to NUCYNTA franchise from Johnson & Johnson (NYSE: JNJ) subsidiary Janssen Pharmaceuticals, Inc. for $1.05 billion.

Schlumberger Limited (NYSE: SLB) shares were also up, gaining 4.96 percent to $80.43 after the company reported upbeat results for the fourth quarter and raised its dividend by 25%.

Equities Trading DOWN

Precision Castparts Corp. (NYSE: PCP) shares tumbled 9.08 percent to $199.76 after the company issued a downbeat Q3 forecast.

Shares of BJ's Restaurants, Inc. (NASDAQ: BJRI) were down 8.57 percent to $43.01 after the company announced preliminary Q4 revenue.

The Goldman Sachs Group, Inc. (NYSE: GS) was down, falling 1.32 percent to $176.14 after the bank reported a drop in its fourth-quarter profit. The New York-based bank reported a quarterly profit of $2.17 billion, versus a year-ago profit of $2.33 billion.

Commodities

In commodity news, oil traded up 3.11 percent to $47.69, while gold traded up 0.93 percent to $1,276.50.

Silver traded up 3.47 percent Friday to $17.70, while copper rose 2.66 percent to $2.63.

Eurozone

European shares closed higher today. The eurozone’s STOXX 600 climbed 1.13 percent, the Spanish Ibex Index rose 0.56 percent, while Italy’s FTSE MIB Index gained 2.18 percent. Meanwhile, the German DAX rose 1.35 percent, and the French CAC 40 jumped 1.31 percent while UK shares gained 0.79 percent.

Economics

U.S. consumer prices declined 0.4% in December, versus economists’ expectations for a 0.4% drop.

U.S. industrial production dropped 0.10% in December, versus economists’ expectations for a 0.10% gain.

The preliminary reading of Reuter's/University of Michigan's consumer sentiment index rose to 98.20 in January, versus a prior reading of 93.60. However, economists were expecting a reading of 94.10.

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