Mid-Morning Market Update: Markets Open Lower; McDonald's Beats Q3 Estimates

Following the market opening Friday, the Dow traded down 0.54 percent to 18,065.04 while the NASDAQ declined 0.20 percent to 5,231.44. The S&P also fell, dropping 0.51 percent to 2,130.52.

Leading and Lagging Sectors

Friday morning, non-cyclical consumer goods & services shares gained by 0.59 percent. Meanwhile, top gainers in the sector included Reynolds American, Inc. RAI, and Altria Group Inc MO.

In trading on Friday, industrials shares fell by 0.97 percent. Meanwhile, top losers in the sector included DXP Enterprises Inc DXPE, down 7 percent, and Heritage-Crystal Clean, Inc. HCCI, down 5 percent.

Top Headline

McDonald's Corporation MCD reported better-than-expected results for the third quarter on Friday.

While net income dipped 3 percent from $1.309 billion to $1.275 billion, EPS grew 7 percent from $1.40 to $1.50 and came in above the estimates of $1.49 a share.

Similarly, McDonald's revenues fell 3 percent from $6.615 billion to $6.424 billion. However, this is higher than the Street analysts' expectations of $6.28 billion.

Equities Trading UP

Alkermes Plc ALKS shares shot up 34 percent to $58.50 after the company announced positive topline results from its late-stage clinical study of ALKS 5461 for the treatment of depression.

Shares of Reynolds American, Inc. RAI got a boost, shooting up 19 percent to $55.92. British American Tobacco PLC (ADR) BTI made a $47 billion takeover offer for the roughly 58 percent of Reynolds American that it doesn’t already own — a move that would cement the two cigarette giants’ longstanding trans-Atlantic ties and create the world’s largest listed tobacco company by revenue and market value. BAT owns 42.2 percent of Reynolds, and is offering cash and BAT stock worth $56.50 a share for the rest of the company.

Cerecor Inc CERC shares were also up, gaining 23 percent to $4.13 in sympathy to Alkermes depression drug data.

Equities Trading DOWN

Stone Energy Corporation SGY shares dropped 36 percent to $6.18 after the company reported a comprehensive restructuring support agreement with senior noteholders and agreed to sell its Appalachia assets.

Shares of Skechers USA Inc SKX were down 17 percent to $19.11 after the company reported downbeat results for its third quarter and issued a weak forecast for the fourth quarter.

Supreme Industries, Inc. STS was down, falling around 11 percent to $16.00. Supreme Industries reported Q3 earnings of $0.29 per share on revenue of $74.8 million.

Commodities

In commodity news, oil traded down 0.51 percent to $50.37 while gold traded down 0.03 percent to $1,267.10.

Silver traded down 0.28 percent Friday to $17.50, while copper fell 0.41 percent to $2.09.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 declined 0.14 percent, the Spanish Ibex Index rose 0.02 percent, while Italy’s FTSE MIB Index dropped 0.11 percent. Meanwhile the German DAX slipped 0.13 percent, and the French CAC 40 fell 0.33 percent while U.K. shares fell 0.04 percent.

Economics

Federal Reserve Governor Daniel Tarullo is set to speak in New York at 10:15 a.m. ET.

The Baker Hughes North American rig count report for the latest week will be released at 1:00 p.m. ET.

San Francisco Federal Reserve Bank President John Williams will speak in San Francisco at 2:30 p.m. ET.