Mid-Afternoon Market Update: Lindsay Gains Following Q4 Results; Fluidigm Shares Drop

Toward the end of trading Thursday, the Dow traded down 0.24 percent to 18,099.90 while the NASDAQ declined 0.45 percent to 5,215.32. The S&P also fell, dropping 0.24 percent to 2,134.01.

Leading and Lagging Sectors

Thursday afternoon, utilities shares gained by 1.41 percent. Meanwhile, top gainers in the sector included Companhia Energetica Minas Gerais (ADR) CIG, and South Jersey Industries Inc SJI.

In trading on Thursday, basic materials shares fell by 1.13 percent. Meanwhile, top losers in the sector included LSB Industries, Inc. LXU, down 6 percent, and United States Steel Corporation X, down 6 percent.

Top Headline

Delta Air Lines, Inc. DAL disclosed better than expected earnings for the third quarter.

The company reported net income of $1.259 billion for the September quarter, down from $1.315 billion in the year-ago quarter. However, EPS rose marginally from $1.65 to $1.69. On an adjusted basis, the company would have earned $1.70 a share thus beating the Street estimates of $1.64.

Delta Air Lines operating revenue fell 6 percent from $11.107 billion to $10.483 billion. While passenger revenue fell 5 percent, revenue from cargo dropped 15 percent from the previous year period.

Equities Trading UP

Ocular Therapeutix Inc OCUL shares shot up 15 percent to $7.24 after the company revealed a tactical collaboration, option and license deal with Regeneron Pharmaceuticals Inc REGN. Ocular stock surged more than 25 percent. According to the agreement terms, the two companies would develop a sustained release formulation of aflibercept, which fits properly for clinical development advancement.

Shares of ContraVir Pharmaceuticals Inc CTRV got a boost, shooting up 19 percent to $1.32 after the company disclosed positive interim data for CMX157 from its Phase 2a clinical study.

Lindsay Corporation LNN shares were also up, gaining 12 percent to $77.83 following Q4 results. Lindsay reported Q4 earnings of $0.73 per share on revenue of $132.9 million.

Equities Trading DOWN

Fluidigm Corporation FLDM shares dropped 28 percent to $5.05 after the company reported weak preliminary revenue for the third quarter.

Shares of Flex Pharma Inc FLKS were down 20 percent to $8.91 after the company announced FLX-787 clinical update.

Covenant Transportation Group, Inc. CVTI was down, falling around 15 percent to $15.10 after the company issued a weak earnings forecast for the third quarter. Covenant Transportation plans to release Q3 earnings on October 19, 2016.

Commodities

In commodity news, oil traded up 0.28 percent to $50.78 while gold traded up 0.34 percent to $1,258.10.

Silver traded down 0.23 percent Thursday to $17.47, while copper fell 2.44 percent to $2.12.

Eurozone

European shares closed lower today. The eurozone’s STOXX 600 declined 0.87 percent, the Spanish Ibex Index fell 0.90 percent, while Italy’s FTSE MIB Index slipped 1.22 percent. Meanwhile the German DAX declined 1.04 percent, and the French CAC 40 slipped 1.06 percent while U.K. shares fell 0.66 percent.

Economics

U.S. jobless claims were flat at 246,000 in the latest week. However, economists were expecting claims to reach 252,000 in the week.

Import prices rose 0.1 percent in September, versus economists’ expectations for a 0.2 percent growth. Export prices rose 0.3 percent, versus estimates of 0.1 percent gain.

Crude supplies increased 4.9 million barrels for the week ended October 7, the U.S. Energy Information Administration reported. However, analysts were expecting a gain of 250,000 barrels. Gasoline supplies dropped 1.9 million barrels, while distillate stockpiles slipped 3.7 million barrels.

Supplies of natural gas gained 79 billion cubic feet for the week ended October 7, the U.S. Energy Information Administration reported. Analysts projected a rise of 87 billion cubic feet.

Data on money supply for the recent week will be released at 4:30 p.m. ET.

Minneapolis Federal Reserve Bank President Neel Kashkari will speak in Missoula at 9:00 p.m. ET.