Mid-Morning Market Update: Markets Open Lower; Caterpillar Posts Mixed Q4 Results

Following the market opening Friday, the Dow traded down 1.05% to 28555.19 while the NASDAQ fell 0.60% to 9242.89. The S&P also fell, dropping 0.79% to 3,257.62.

Leading and Lagging Sectors

Consumer discretionary shares climbed 2.2% on Friday. Meanwhile, top gainers in the sector included Adient plc ADNT, up 29%, and Deckers Outdoor Corporation DECK, up 10%.

In trading on Friday, energy shares fell 2.4%.

Top Headline

Caterpillar Inc. CAT reported better-than-expected earnings for its fourth quarter, while sales missed views. The company also issued weak earnings forecast for 2020.

Caterpillar reported quarterly earnings of $2.63 per share on Friday, which beat the analyst consensus estimate of $2.37. The company reported quarterly sales of $13.1 billion, which missed the analyst consensus estimate of $13.41 billion.

Caterpillar sees 2020 EPS of $8.50-$10 versus the $10.63 estimate.


Equities Trading UP

Navistar International Corporation NAV shares shot up 55% to $37.18 after the company announced it has received an unsolicited proposal from Traton SE regarding a potential transaction to acquire the company for $35 per share in cash.

Shares of NanoViricides, Inc. NNVC got a boost, shooting up 42% to $16.98 after the company confirmed it has been developing a treatment for the novel Wuhan Coronavirus.

Syndax Pharmaceuticals, Inc. SNDX shares were also up, gaining 32% to $8.79. Syndax reported a $35 million common stock offering and $30 million term sheet for loan with Hercules Capital.

Equities Trading DOWN

World Wrestling Entertainment, Inc. WWE shares tumbled 23% to $48.14 after the company announced the Co-Presidents, George Barrios and Michelle Wilson, will depart the company. WWE also downgraded its expectations for adjusted operating income before depreciation and amortization to $180 million, from an earlier forecast of $190 million.

Shares of Identiv, Inc. INVE were down 20% to $4.7727.

Beazer Homes USA, Inc. BZH was down, falling 17% to $14.25. Wedbush downgraded Beazer Homes USA from Outperform to Neutral.

Commodities


In commodity news, oil traded up 0.4% to $52.36, while gold traded down 0.3% to $1,579.40.

Silver traded down 0.7% Friday to $17.87, while copper rose 0.1% to $2.527.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 declined 0.5%, the Spanish Ibex Index fell 0.8%, while Italy’s FTSE MIB Index fell 1.4% Meanwhile, the German DAX dropped 0.4%, and the French CAC 40 fell 0.5% while UK shares fell 0.8%.

Economics

U.S. personal spending increased 0.3% in December, versus a 0.4% growth in November. Personal income rose 0.2% in December, versus a revised 0.4% gain in November.

The employment cost index rose 0.7% for the fourth quarter.

The Chicago PMI fell 5.3 points to a reading of 42.9 in January.

The University of Michigan’s consumer sentiment index rose to 99.8 in January, versus a preliminary reading of 99.1 and compared to 99.3 in December.

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

Data on farm prices for December will be released at 3:00 p.m. ET.