Mid-Day Market Update: Crude Oil Up 3%; VeriFone Shares Decline On Lowered Forecast

Midway through trading Friday, the Dow traded up 0.44 percent to 18,499.94 while the NASDAQ gained 0.40 percent to 5,248.05. The S&P also rose, gaining 0.38 percent to 2,179.20.

Leading and Lagging Sectors

On Friday, energy shares surged by 1.65 percent. Meanwhile, top gainers in the sector included Pioneer Energy Services Corp PES, and Resolute Energy Corp REN.

In trading on Friday, cyclical consumer goods & services shares rose by just 0.2 percent. Meanwhile, top losers in the sector included Lululemon Athletica inc. LULU, down 9 percent, and Carnival plc (ADR) CUK, down 5 percent.

Top Headline

Lululemon Athletica inc. LULU reported in-line earnings for the second quarter, but revenue missed analysts’ estimates. The company issued a weak earnings forecast for the current quarter.

While EPS of $0.38 were in-line with the Street’s consensus, revenue of $514.5 million missed estimates by $970,000, despite having surged 13.6 percent year-over-year.

For the third quarter, management expects revenues of $535 million to $545 million, versus estimates of $541 million, and EPS of $0.42 to $0.44, mostly below the Street’s consensus of $0.44. For the full year, the team envisions sales of $2.32 billion to $2.35 billion, somewhat in line with expectations for $2.34 billion, and EPS of $2.11 to $2.19, which compare to estimates of $2.15.

Equities Trading UP

Accuride Corporation ACW shares shot up 55 percent to $2.58 as the company agreed to be acquired by Crestview Partners for $2.58 per share in cash.

Shares of Siebert Financial Corp. SIEB got a boost, shooting up 31 percent to $1.52. Kennedy Cabot Acquisitoin agreed to acquire around 90 percent of Siebert stock.

Pioneer Energy Services Corp PES shares were also up, gaining 16 percent to $3.79. Jefferies upgraded Pioneer Energy from Hold to Buy.

Equities Trading DOWN

VeriFone Systems Inc PAY shares dropped 17 percent to $16.72. VeriFone reported upbeat earnings for its third quarter, but sales missed expectations. The company also lowered its guidance for 2016.

Shares of Lululemon Athletica inc. LULU were down 9 percent to $69.52. Lululemon reported in-line earnings for the second quarter, but revenue missed analysts’ estimates. The company also issued a weak earnings forecast for the current quarter.

ChemoCentryx Inc CCXI was down, falling around 12 percent to $4.63 as the company reported initial results from ongoing Phase Ib clinical trial of CCX872 in patients with advanced pancreatic cancer.

Commodities

In commodity news, oil traded up 3.06 percent to $44.48 while gold traded up 0.44 percent to $1,322.90.

Silver traded up 1.96 percent Friday to $19.32, while copper rose 0.26 percent to $2.08.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 rose 1.97 percent, the Spanish Ibex Index rose 1.67 percent, while Italy’s FTSE MIB Index surged 1.54 percent. Meanwhile the German DAX rose 1.42 percent, and the French CAC 40 rose 2.31 percent while U.K. shares rose 2.2 percent.

Economics

The U.S. economy added 151,000 jobs in August, while the unemployment rate came in unchanged at 4.9 percent. Economists were expecting a gain of 180,000 jobs for the month.

The U.S. trade deficit declined around 12 percent to $39.5 billion in July. However, economists were projecting the trade gap to reach $40 billion for the month. U.S. exports gained 1.9 percent to $186.3 billion, while imports slipped 0.8 percent to $225.8 billion.

U.S. factory orders rose 1.90 percent for July, versus economists’ expectations for a 2.00 percent growth.

The Baker Hughes North American rig count report for the latest week is schedule for release at 1:00 p.m. ET.

Richmond Federal Reserve Bank President Jeffrey Lacker is set to speak in Richmond at 1:00 p.m. ET.