Mid-Morning Market Update: Markets Open Lower; Walgreens Profit Tops Expectations

Following the market opening Wednesday, the Dow traded down 0.46 percent to 17,757.69 while the NASDAQ declined 0.62 percent to 4,792.84. The S&P also fell, dropping 0.53 percent to 2,077.49.

Leading and Lagging Sectors

On Wednesday, non-cyclical consumer goods & services shares slipped by just 0.08 percent.

In trading on Wednesday, financial shares fell by 1.13 percent. Meanwhile, top losers in the sector included Royal Bank of Scotland Group PLC RBS, down 7 percent, and Lloyds Banking Group PLC (ADR) LYG, down 6 percent.

Top Headline

Walgreens Boots Alliance Inc WBA reported better-than-expected earnings for its third quarter, but the company missed analysts’ sales estimates. The company also raised lower end of its FY16 earnings outlook.

Walgreen Boots Alliance reported net earnings of $1.1 billion, down 15.23 percent from $1.2 billion while earnings fell 14.4 percent to $1.01 a share from $1.18 a share in the year-ago quarter. However, on an adjusted basis, its earnings would have advanced 14.7 percent to $1.3 billion and adjusted EPS 15.7 percent to $1.18. Street analysts were looking for earnings of $1.14 a share.

The company's net sales in the third quarter were $29.5 billion, up 2.4 percent from $28.8 billion in the previous year quarter, or 3.3 percent on a constant currency basis. This was lower than the analysts' expectations of $29.71 billion.

Equities Trading UP

Forward Industries, Inc. FORD shares shot up 46 percent to $1.67 as the company reported a new three-year agreement with a global healthcare provider.

Shares of Versar Inc. VSR got a boost, shooting up 41 percent to $1.62 as the company reported that it has been awarded a new contract for critical environmental work on behalf of Air Force Civil Engineer Center with contract ceiling of $500 million.

Nortek Inc NTK shares were also up, gaining 38 percent to $86.41 after the company agreed to be acquired by Melrose Industries for $86.00 per share.

Equities Trading DOWN

GlobeImmune Inc GBIM shares dropped 39 percent to $1.10 after the company reported delisting and deregistration of common stock.

Shares of Telecom Italia SpA (ADR) TI were down 9 percent to $7.25. Analysts at JP Morgan downgraded Telecom Italia from Overweight to Neutral.

Eagle Bulk Shipping Inc EGLE was down, falling around 28 percent to $0.320. Eagle Bulk Shipping reported proceeds of $85 million in sale of common stock.

Commodities

In commodity news, oil traded down 0.56 percent to $46.34 while gold traded up 1.03 percent to $1,372.70.

Silver traded up 1.32 percent Wednesday to $20.17, while copper fell 1.63 percent to $2.15.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 fell 1.60 percent, the Spanish Ibex Index dipped 1.72 percent, while Italy’s FTSE MIB Index slipped 1.85 percent. Meanwhile the German DAX declined 1.76 percent, and the French CAC 40 dropped 1.76 percent, while U.K. shares fell 1.48 percent.

Economics

The MBA reported that its index of mortgage application activity gained 14.20 percent for the week ended July 1.

U.S. trade deficit rose 10 percent to $41.1 billion in May, versus a revised $37.4 billion in April. However, economists were expecting a trade deficit of $40.2 billion.

The Markit Services PMI rose to 51.40 for June, versus a prior reading of 51.30. Economists projected a reading of 51.50.

The ISM non-manufacturing index gained to 56.50 in June, versus a previous reading of 52.90. However, economists were expecting a reading of 53.30.

The Federal Open Market Committee will issue minutes of its latest meeting at 2:00 p.m. ET.