Mid-Morning Market Update: Markets Open Lower; Adobe Earnings Top Expectations
Following the market opening Friday, the Dow traded down 0.36 percent to 17,533.40 while the NASDAQ slipped 0.29 percent to 4,694.38. The S&P also fell, dropping 0.37 percent to 2,027.87.
Leading and Lagging Sectors
Cyclical consumer goods & services shares gained 0.03 percent in Friday’s trading. Meanwhile, top gainers in the sector included Ctrip.com International (NASDAQ: CTRP), up 4.7 percent, and Denny's (NASDAQ: DENN), up 3.5 percent.
In trading on Friday, energy shares dropped by 1.29 percent. Meanwhile, top losers in the sector included Goodrich Petroleum (NYSE: GDP), down 7.9 percent, and Rex Energy (NASDAQ: REXX), off 7.6 percent.
Top Headline
On Thursday, Adobe Systems Incorporated (NASDAQ: ADBE) posted fourth-quarter results that beat Wall Street's estimates and said its shift to cloud-based products outpaced its plan.
Net income in the recent quarter increased 12 percent to $23.3 million, or $0.14 a share, from $65.3 million, or $0.13 a share in the year-ago period. Excluding items, adjusted income equaled $0.36 a share.
Total revenue grew 2.9 percent to $1.07 billion from $1.03 billion a year earlier. Wall Street expected adjusted profits of $0.30 a share on revenue of $1.06 billion.
Equities Trading UP
ChemoCentryx (NASDAQ: CCXI) shares shot up 66.82 percent to $7.49 as primary endpoint achieved in Phase II CCX140 trial.
Shares of Talisman Energy (NYSE: TLM) got a boost, shooting up 37.26 percent to $5.07. Repsol finalized €4 billion offer for Talisman Energy, according to Spain's publication 'Expansion.'
Adobe Systems (NASDAQ: ADBE) shares were also up, gaining 7.55 percent to $75.00 after the company posted better-than-expected fourth-quarter results and announced its plans to acquire privately-held Fotolia for around $800 million in cash.
Equities Trading DOWN
Caesars Entertainment (NASDAQ: CZR) shares tumbled 12.08 percent to $13.07. Dow Jones reported that Caesars has reached a tentative debt-restructuring agreement for largest unit with senior bondholders, according to sources.
Shares of Goodrich Petroleum (NYSE: GDP) were down 7.51 percent to $3.94. Analysts at JP Morgan downgraded Goodrich Petroleum from Overweight to Underweight and removed the price target of $27.
United Technologies (NYSE: UTX) was down, falling 1.20 percent to $112.68 after the company issued a downbeat outlook for FY2014 and FY2015.
Commodities
In commodity news, oil traded down 2.54 percent to $58.43, while gold traded down 0.33 percent to $1,221.60.
Silver traded down 0.30 percent Friday to $17.06, while copper rose 0.02 percent to $2.92.
Eurozone
European shares were lower today. The eurozone’s STOXX 600 fell 1.62 percent, the Spanish Ibex Index slipped 1.52 percent, while Italy’s FTSE MIB Index declined 1.78 percent. Meanwhile, the German DAX dipped 1.56 percent and the French CAC 40 dropped 1.67 percent while UK shares declined 1.54 percent.
Economics
U.S. producer prices declined 0.2% in November, versus economists’ expectations for a 0.1% drop.
The preliminary reading of Reuters/University of Michigan's consumer sentiment index rose to 93.80 in December, versus a prior reading of 88.80. However, economists were expecting a reading of 89.70.
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