Mid-Morning Market Update: Markets Rise; Citigroup Q2 Profit Tops Estimates

Following the market opening Thursday, the Dow traded up 0.21 percent to 18,088.18 while the NASDAQ climbed 0.81 percent to 5,140.08. The S&P also rose, gaining 0.61 percent to 2,120.23.

Leading and Lagging Sectors
Telecommunications services shares jumped by 1 percent on Thursday. Meanwhile, top gainers in the sector included Partner Communications Company Ltd (ADR) PTNR, up 14 percent, and Cellcom Israel Ltd. CEL, up 14 percent.
In trading on Thursday, basic materials shares rose by just 0.2 percent. Meanwhile, top losers in the sector included Sherwin-Williams Co SHW, down 10 percent, and Sonoco Products Co SON, off 5 percent.

Top Headline
Citigroup Inc C reported better-than-expected earnings for its second quarter.
The New York-based bank posted a quarterly profit of $4.85 billion, or $1.51 per share, versus a year-ago profit of $181 million, or $0.03 per share. Excluding legal costs and accounting items, Citigroup’s earnings climbed to $1.45 per share from $1.24 per share.
Its revenue rose slightly to $19.47 billion from $19.43 billion, while adjusted revenue slipped 1.5 percent to $19.16 billion. Analysts were expecting a profit of $1.34 per share on revenue of $19.11 billion.
Equities Trading UP
Netflix, Inc. NFLX shares shot up 10 percent to $108.11 after the company reported better-than-expected earnings for its second quarter.
WNS (Holdings) Limited (ADR) WNS shares were also up, gaining 11 percent to $29.31 after the company reported upbeat Q1 results and raised its FY16 outlook.
Shares of eBay Inc EBAY got a boost, shooting up 5 percent to $66.49 after the company reported better-than-expected Q2 earnings.

Equities Trading DOWN
Quantum Corp QTM shares tumbled 18 percent to $1.40 after the company announced preliminary FQ1 results.
Shares of Rovi Corporation ROVI were down 20 percent to $14.08 after the company issued an update on ongoing litigation against Netflix, Inc. NFLX. KeyBanc downgraded Rovi from Overweight to Sector Weight.
Fairchild Semiconductor Intl Inc FCS was down, falling 12 percent to $14.80 after the company reported downbeat Q2 results.

Commodities
In commodity news, oil traded up 0.45 percent to $51.64, while gold traded down 0.38 percent to $1,143.00.
Silver traded down 1.02 percent Thursday to $14.90, while copper fell 0.10 percent to $2.52.

Euro zone
European shares were higher today. The eurozone’s STOXX 600 climbed 1.55 percent, the Spanish Ibex Index gained 1.66 percent, while Italy’s FTSE MIB Index surged 1.56 percent. Meanwhile, the German DAX rose 1.88 percent, and the French CAC 40 jumped 1.84 percent while UK shares gained 0.66 percent.

Economics
US jobless claims slipped by 15,000 to 281,000 in the week ended July 11. However, economists were expecting initial claims to reach 287,000 in the week.
US Philadelphia Fed manufacturing index slipped to 5.70 in July, versus a prior reading of 15.20. However, economists were expecting a reading of 12.00.
The NAHB housing market index stood at 60 in July, matching economists’ expectations for a reading of 60.