Mid-Morning Market Update: Markets Mostly Flat; Facebook Profit Beats Estimates

Following the market opening Thursday, the Dow traded up 0.07 percent to 17,972.28 while the NASDAQ declined 0.01 percent to 5,105.12. The S&P also rose, gaining 0.07 percent to 2,099.41.

Leading and Lagging Sectors

Thursday morning, basic materials shares gained by 0.63 percent. Meanwhile, top gainers in the sector included Ternium SA (ADR) TX, and United States Steel Corporation X.

In trading on Thursday, utilities shares fell by 0.09 percent. Meanwhile, top losers in the sector included Atlantic Power Corp AT, down 2 percent, and Chesapeake Utilities Corporation CPK, down 2 percent.

Top Headline

Facebook Inc FB posted better-than-expected earnings for its third quarter on Wednesday. However, the company’s CFO warned that revenue growth rates would decline in the fourth quarter.

The social media giant reported non-GAAP earnings of $1.09 a share on revenue of $7 billion, which topped Street view of $0.97 on revenue of $6.92 billion. The company delivered 59 percent growth in ad revenues and showed meaningful margin beat.

Equities Trading UP

Metaldyne Performance Group Inc MPG shares shot up 43 percent to $20.40 after American Axle & Manufact. Holdings, Inc. AXL announced acquisition of the company for $1.6 billion in cash and $1.7 billion assumed debt. MPG reported Q3 earnings of $0.33 per share on revenue of $676 million.

Shares of Inteliquent Inc IQNT got a boost, shooting up 35 percent to $22.64 after the company agreed to be acquired by GTCR for $23.00 per share in cash.

Lattice Semiconductor LSCC shares were also up, gaining 21 percent to $7.72 after the company agreed to be acquired by Canyon Bridge Capital Partners, Inc. for $1.3 billion.

Equities Trading DOWN

AAC Holdings Inc AAC shares dropped 46 percent to $8.51 after the company posted downbeat quarterly results and issued a weak FY16 outlook.

Shares of Diplomat Pharmacy Inc DPLO were down 29 percent to $15.78 after the company reported downbeat quarterly earnings and lowered its FY16 forecast.

Fitbit Inc FIT was down, falling around 30 percent to $9.03 after the company posted downbeat quarterly revenue and issued a weak forecast the current quarter.

Commodities

In commodity news, oil traded up 0.35 percent to $45.50 while gold traded down 1.08 percent to $1,294.10.

Silver traded down 2.88 percent Thursday to $18.16, while copper rose 0.45 percent to $2.24.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.68 percent, the Spanish Ibex Index rose 0.52 percent, while Italy’s FTSE MIB Index gained 0.28 percent. Meanwhile the German DAX rose 0.12 percent, and the French CAC 40 climbed 0.63 percent while U.K. shares fell 0.56 percent.

Economics

U.S jobless claims increased 7,000 to 265,000 in the latest week. However, economists were projecting claims to reach 258,000 in the week.

Productivity rose at an annual rate of 3.1 percent pace in the third quarter, versus economists’ expectations for a 2 percent growth. Unit-labor costs rose 0.3 percent in the quarter.

U.S. factory orders rose 0.30 percent for September, versus economists’ expectations for a 0.20 percent growth.

The ISM non-manufacturing index dropped to 54.80 in October, versus a prior reading of 57.10. Economists projected a reading of 56.00.

The Energy Information Administration’s weekly report on natural gas stocks is schedule for release at 10:30 a.m. ET.

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