Mid-Afternoon Market Update: Lumber Liquidators Drops After Wider Loss; INC Research Shares Spike Higher

Toward the end of trading Monday, the Dow traded down 0.10 percent to 18,142.94 while the NASDAQ gained 0.03 percent to 5,191.66. The S&P also rose, gaining 0.03 percent to 2,126.79.

Leading and Lagging Sectors

Monday afternoon, utilities shares gained by 1.72 percent. Meanwhile, top gainers in the sector included NRG Energy Inc NRG, and Atmos Energy Corporation ATO.

In trading on Monday, energy shares fell by 0.97 percent. Meanwhile, top losers in the sector included Contango Oil & Gas Company MCF, down 12 percent, and Seacor Holdings, Inc. CKH, down 9 percent.

Top Headline

General Electric Company GE confirmed on Monday that it has entered into an agreement in which its oil and gas business will combine with Baker Hughes Incorporated BHI to create a world-leading oilfield technology provider.

As part of the agreement, Baker Hughes shareholders will receive a one-time cash dividend of $17.50 per share and will also own 37.5 percent of the new entity.

The combined company will boast operations in more than 120 countries and become a leading equipment, technology and services provider in the oil and gas industry with a combined revenue base of $32 billion. Moreover, the combined entity would be better positioned for growth when the oil and gas industry rebounds.

Equities Trading UP

Intersections Inc. INTX shares shot up 23 percent to $2.16 after the company disclosed that its board has received a proposal from Loeb Holding to acquire the company's Pet Health Monitoring Segment.

Shares of TeamHealth Holdings Inc TMH got a boost, shooting up 16 percent to $42.80 after the company agreed be purchased by Blackstone Group LP BX at $43.50 per share in cash.

INC Research Holdings Inc INCR shares were also up, gaining 11 percent to $46.05 after the company reported better-than-expected quarterly earnings.

Equities Trading DOWN

Memorial Production Partners LP MEMP shares dropped 49 percent to $0.554 as the company announced Friday that it will suspend quarterly cash distribution. Stifel Nicolaus downgraded Memorial Production Partners from Hold to Sell.

Shares of Zimmer Biomet Holdings Inc ZBH were down 13 percent to $106.06. Zimmer Biomet reported Q3 adjusted earnings of $1.79 per share on sales of $1.83 billion. The company also lowered the high end of previously issued FY16 earnings outlook.

Lumber Liquidators Holdings Inc LL was down, falling around 17 percent to $15.43 after the company posted a wider-than-expected quarterly loss.

Commodities

In commodity news, oil traded down 3.31 percent to $47.09 while gold traded down 0.23 percent to $1,273.90.

Silver traded up 0.11 percent Monday to $17.82, while copper rose 0.52 percent to $2.21.

Eurozone

European shares closed lower today. The eurozone’s STOXX 600 slipped 0.54 percent, the Spanish Ibex Index fell 0.63 percent, while Italy’s FTSE MIB Index dropped 1.15 percent. Meanwhile the German DAX slipped 0.29 percent, and the French CAC 40 dropped 0.86 percent while U.K. shares fell 0.60 percent.

Economics

U.S. consumer spending rose 0.50 percent for September, versus economists’ expectations for a 0.50 percent growth. Personal income increased 0.30 percent, versus estimates of a 0.40 percent gain.

The Chicago PMI dropped to 50.60 in October, versus a prior reading of 54.20. Economists were expecting a reading of 54.00.

The Dallas Fed manufacturing business index rose to -1.50 in October, versus a prior reading of -3.70. Economists expected a reading of 2.00.

Data on farm prices for October will be released at 3:00 p.m. ET.