Mid-Afternoon Market Update: Tech Data Falls On Downbeat Earnings; Aptevo Therapeutics Shares Surge

Toward the end of trading Friday, the Dow traded up 0.29 percent to 22,012.14 while the NASDAQ climbed 0.11 percent to 6,435.79. The S&P also rose, gaining 0.28 percent to 2,478.62.

Leading and Lagging Sectors

Friday afternoon, the basic materials shares climbed by 1.05 percent. Meanwhile, top gainers in the sector included Companhia Siderurgica Nacional (ADR) SID, up 7 percent, and CVR Partners LP UAN, up 7 percent.

In trading on Friday, utilities shares fell 0.02 percent. Meanwhile, top losers in the sector included Genie Energy Ltd GNE, down 3 percent, and RGC Resources Inc. RGCO down 3 percent.

Top Headline

Lululemon Athletica inc. LULU reported better-than-expected results for its second quarter and raised its FY17 outlook.

Lululemon posted quarterly earnings of $0.36 per share on revenue of $581.1 million. However, analysts were expecting earnings of $0.35 per share on revenue of $567.6 million.

lululemon now expects FY17 adjusted earnings of $2.35 to $2.42 per share, versus earlier forecast of $2.28 to $2.38 per share. The company now projects sales of $2.545 billion to $2.595 billion, compared to earlier outlook of $2.53 billion to $2.58 billion.

Equities Trading UP

Orchids Paper Products Company TIS shares shot up 27 percent to $12.96 after the company disclosed that it has won a new business from a customer in 'a new distribution channel.'

Shares of Palo Alto Networks Inc PANW got a boost, shooting up 11 percent to $146.84 after the company posted stronger-than-expected results for its fourth quarter and announced the retirement of its Chief Financial Officer Steffan Tomlinson.

Aptevo Therapeutics Inc APVO shares were also up, gaining 59 percent to $2.11. Aptevo Therapeutics reported end of joint development and commercialization deal with MorphoSys for MOR209/ES414 and disclosed a $74.5 million agreement to sell hyperimmune commercial products.

Equities Trading DOWN

Ambarella Inc AMBA shares dropped 22 percent to $42.29. Ambarella reported better-than-expected results for its second quarter. Ambarella projects full-year revenue to decline 3 percent to 7 percent versus the previous year. The company expects Q3 revenue of $87.5 million to $90.5 million. Craig-Hallum downgraded Ambarella from Buy to Hold.

Shares of Tech Data Corp TECD were down 21 percent to $86.65. Tech Data posted downbeat earnings for its second quarter, while sales exceeded estimates. The company also issued a weak earnings forecast for the current quarter.

DryShips Inc. DRYS was down, falling around 13 percent to $2.36. DryShips reported a Q2 loss of $15.6 million on revenue of $16.4 million and announced commencement of rights offering.

Commodities

In commodity news, oil traded up 0.06 percent to $47.26 while gold traded up 0.57 percent to $1,329.80.

Silver traded up 1.22 percent Friday to $17.79, while copper rose 0.68 percent to $3.1195.

Eurozone

European shares closed higher today. The eurozone’s STOXX 600 climbed 0.60 percent, the Spanish Ibex Index gained 0.25 percent, while Italy’s FTSE MIB Index rose 0.87 percent. Meanwhile the German DAX climbed 0.72 percent, and the French CAC 40 rose 0.74 percent while U.K. shares rose 0.11 percent.

Economics

The U.S. economy added 156,000 new jobs in August, while the unemployment rate increased to 4.4 percent from 4.3 percent. However, economists were expecting a gain of 180,000 nonfarm jobs.

The Markit manufacturing PMI declined to 52.8 for August, from a reading of 53.3 in July.

The ISM manufacturing index surged to 58.8 in August, compared to 56.3 in July. However, economists expected a reading of 56.8.

U.S. construction spending dropped 0.6 percent for July, versus economists’ expectations for a 0.6 percent growth.

The University of Michigan's consumer sentiment index slipped to 96.8 in August, versus a preliminary reading of 97.6. Economists projected a reading 97.4.

The total number of active U.S. oil rigs came in unchanged at 759 rigs this week, Baker Hughes Inc reported.