Mid-Afternoon Market Update: Crude Oil Down 1%; Dr. Pepper Snapple Shares Surge Amid Plans To Merge With Keurig Green Mountain

Toward the end of trading Monday, the Dow traded down 0.34 percent to 26,526.71 while the NASDAQ declined 0.26 percent to 7,486.60. The S&P also fell, dropping 0.33 percent to 2,863.42.

Leading and Lagging Sectors

On Monday, the cyclical consumer goods & services shares slipped by just 0.07 percent. Meanwhile, top gainers in the sector included Sears Holdings Corp SHLD, up 6 percent, and International Speedway Corp ISCA, up 6 percent.

In trading on Monday, telecommunications services shares fell 1.1 percent. Meanwhile, top losers in the sector included Partner Communications Company Ltd (ADR) PTNR, down 6 percent, and Cellcom Israel Ltd. CEL down 5 percent.

Top Headline

Lockheed Martin Corporation LMT reported better-than-expected earnings for its fourth quarter and raised its FY18 earnings outlook.

Lockheed Martin posted adjusted earnings from continuing operations of $4.30 per share in the fourth quarter on revenue of $15.14 billion. However, Wall Street analysts were expecting the company to earn $4.07 per share on revenue of $14.73 billion.

Lockheed Martin expects FY18 earnings of $15.20 to $15.50 per share, on sales of $50 billion to $51.5 billion. Analysts projected earnings of $14.00 per share on sales of $50.6 billion.

Equities Trading UP

Immersion Corporation IMMR shares shot up 51 percent to $11.05 after the company reported a settlement with Apple.

Shares of KapStone Paper and Packaging Corp. KS got a boost, shooting up 30 percent to $34.44 after the paper company confirmed it has agreed to sell itself to WestRock Co WRK, a larger and multinational provider of paper and packaging solutions.

Dr Pepper Snapple Group Inc. DPS shares were also up, gaining 24 percent to $118.67. Dr. Pepper Snapple and Keurig Green Mountain announced plans to combine themselves into one new company called Keurig Dr. Pepper. As part of a deal, Dr. Pepper Snapple investors will receive $103.75 per share in a special one-time cash dividend and own 13 percent of the combined entity.

Equities Trading DOWN

Aradigm Corporation ARDM shares dropped 22 percent to $1.75 after the pharmaceutical company that focuses on severe respiratory diseases announced a disappointing update. The company said the U.S. Food and Drug Administration won't approve its Linhaliq NDA in its present form due to multiple areas of concerns, including clinical data, product quality, and human factors.

Shares of Sohu.com Inc SOHU were down 16 percent to $38.95. Sohu.com reported a Q4 loss of $294.1 million on revenue of $509.6 million.

ITUS Corp ITUS was down, falling around 17 percent to $5.04. ITUS presented data from its early cancer detection technology at the ASCO-SITC Clinical Immuno-oncology Symposium in San Francisco, CA.

Commodities

In commodity news, oil traded down 1 percent to $65.47 while gold traded down 1.07 percent to $1,342.70.

Silver traded down 1.96 percent Monday to $17.10, while copper fell 0.19 percent to $3.193.

Eurozone

European shares closed mostly lower today. The eurozone’s STOXX 600 slipped 0.19 percent, the Spanish Ibex Index fell 0.38 percent, while Italy’s FTSE MIB Index dropped 0.23 percent. Meanwhile the German DAX dropped 0.12 percent, and the French CAC 40 slipped 0.14 percent while U.K. shares rose 0.08 percent.

Economics

U.S. consumer spending gained 0.4 percent for December, while personal income rose 0.4 percent. Economists were expecting a 0.5 percent increase in spending.

The Dallas Fed manufacturing business index climbed to 33.40 for January, versus prior reading of 29.70. However, economists were expecting a reading of 25.30.