Mid-Morning Market Update: Markets Mostly Flat; Oracle Issues Weak Guidance

Following the market opening Friday, the Dow traded up 0.05 percent to 22,215.08 while the NASDAQ rose 0.01 percent to 6,429.56. However, the S&P dropped 0.06 percent to 2,494.03.

Leading and Lagging Sectors

Friday morning, the non-cyclical consumer goods & services shares surged 0.34 percent.

In trading on Friday, basic materials shares fell 0.27 percent. Meanwhile, top losers in the sector included James Hardie Industries plc (ADR), down 4 percent, and Aluminum Corp. of China Limited (ADR) down 4 percent.

Top Headline

Oracle Corporation reported better-than-expected results for its first quarter, but issued a weak profit forecast for the current quarter.

Oracle posted Q4 adjusted earnings of $0.62 per share on revenue of $9.19 billion. However, analysts were expecting earnings of $0.60 per share on sales of $9.03 billion.

Oracle expects Q2 adjusted earnings of $0.64 to $0.68 per share, versus analysts’ estimates of $0.68 per share. The company projects Q2 sales growth of 2 percent to 4 percent.

Equities Trading UP

Mirati Therapeutics, Inc. shares shot up 103 percent to $9.62 after the company presented positive preliminary data from sitravatinib studies.

Shares of LightPath Technologies, Inc. got a boost, shooting up 8 percent to $2.60. LightPath Technologies reported Q4 net income of $6.4 million, up from $331,000 in the year-ago quarter. Its revenue climbed 90 percent to $9.0 million.

The Stars Group Inc. shares were also up, gaining 10 percent to $19.12 after the company raised its FY2017 guidance.

Equities Trading DOWN

T2 Biosystems Inc shares dropped 28 percent to $4.38. T2 Biosystems priced its 4.375 million share offering at $4 per share.

Shares of Oracle Corporation were down 6 percent to $49.53. Oracle reported better-than-expected results for its first quarter, but issued a weak profit forecast for the current quarter.

First Internet Bancorp was down, falling around 6 percent to $29.25. First Internet Bancorp priced 1.65 million shares at $29 per share.

Commodities

In commodity news, oil traded up 0.22 percent to $50.00 while gold traded down 0.01 percent to $1,329.20.

Silver traded down 0.05 percent Friday to $17.78, while copper fell 0.10 percent to $2.9545.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 dropped 0.24 percent, the Spanish Ibex Index fell 0.36 percent, while Italy’s FTSE MIB Index declined 0.04 percent. Meanwhile the German DAX dropped 0.01 percent, and the French CAC 40 slipped 0.19 percent while U.K. shares fell 1.26 percent.

Economics

U.S. retail sales declined 0.2 percent for August, versus economists’ expectations for a 0.1 percent growth.

The Empire State manufacturing index dropped to 24.40 in September, from August reading of 25.20. Economists were expecting a reading of 19.00.

U.S. industrial production declined 0.9 percent for August, versus economists’ expectations for a 0.1 percent growth.

U.S. business inventories rose 0.2 percent for July, versus economists’ expectations for a 0.20 percent gain.

The University of Michigan's consumer sentiment index dropped to 95.30 in September, versus prior reading of 96.80. Economists projected a reading of 95.10.

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

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