Mid-Morning Market Update: Markets Edge Lower; General Motors Tops Q3 Views

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Following the market opening Tuesday, the Dow traded down 0.01 percent to 18,221.15 while the NASDAQ declined 0.08 percent to 5,305.71. The S&P also fell, dropping 0.09 percent to 2,149.45.

Leading and Lagging Sectors

Tuesday morning, basic materials shares gained by 0.58 percent. Meanwhile, top gainers in the sector included AK Steel Holding Corporation (NYSE: AKS ), and Freeport-McMoRan Inc (NYSE: FCX ).

In trading on Tuesday, cyclical consumer goods & services shares fell by 0.64 percent. Meanwhile, top losers in the sector included Sonic Corporation (NASDAQ: SONC ), down 20 percent, and Under Armour Inc (NYSE: UA ), down 12 percent.

Top Headline

General Motors Company (NYSE: GM ) reported stronger-than-expected earnings for the third quarter on Tuesday.

GM's net income climbed to $2.8 billion, or $1.76 per share in the latest quarter. Excluding items, the company earned $1.72 per share, beating analysts' estimates of $1.45 per share.

Its revenue increased 10 percent to $42.8 billion in the quarter, beating estimates by $3.51 billion.

Equities Trading UP

SAExploration Holdings, Inc. (NASDAQ: SAEX ) shares shot up 36 percent to $10.19 after the company announced the receipt of $24.4 million Alaskan tax credit certificates.

Shares of Clayton Williams Energy, Inc. (NYSE: CWEI ) got a boost, shooting up 16 percent to $85.88 after the company announced an agreement to sell Giddings Area assets for $400 million and named Patrick Cooke as COO.

Global Blood Therapeutics Inc (NASDAQ: GBT ) shares were also up, gaining 17 percent to $20.80 following a pair of news items announced in a company press release. The company has reached an agreement with the FDA regarding the design of its pivotal trial for GBT440 in adults and adolescents with sickle cell disease. The company announced in an SEC filing that the company's Chief Medical Officer, Eleanor Ramos, will retire, effective today.

Equities Trading DOWN

Dipexium Pharmaceuticals Inc (NASDAQ: DPRX ) shares dropped 84 percent to $2.05 after the company disclosed that top-line data from OneStep Phase 3 trials of Locilex failed to meet the primary endpoint.

Shares of FuelCell Energy Inc (NASDAQ: FCEL ) were down 29 percent to $3.70 after the company disclosed that CT Energy & Technology was not selected for contract negotiations under RFP. Roth Capital downgraded FuelCell Energy from Buy to Neutral and lowered the price target from $7.50 to $4.00.

Sonic Corporation (NASDAQ: SONC ) was down, falling around 20 percent to $21.28. Sonic reported upbeat earnings for its fourth quarter, but revenue missed expectations.


In commodity news, oil traded down 0.59 percent to $50.22 while gold traded up 0.35 percent to $1,268.10.

Silver traded up 0.46 percent Tuesday to $17.69, while copper rose 2.34 percent to $2.14.


European shares were mixed today. The eurozone's STOXX 600 slipped 0.10 percent, the Spanish Ibex Index fell 0.61 percent, while Italy's FTSE MIB Index dropped 0.48 percent. Meanwhile the German DAX gained 0.23 percent, and the French CAC 40 climbed 0.03 percent while U.K. shares rose 0.80 percent.


The Johnson Redbook Retail Sales Index declined 0.1 percent during the first three weeks of October versus September.

The S&P Corelogic Case-Shiller home price index gained 0.4 percent in August. However, economists were expecting a 0.2 percent monthly growth.

The Conference Board's consumer confidence index declined to 98.60 in October, versus economists' estimates for a reading of 101.00.

The Richmond Fed manufacturing index rose to a reading of -4.00 in October, versus a prior reading of -8.00. Economists expected a reading of -5.00.

The Treasury is set to auction 4-week bills at 11:30 a.m. ET.

The Treasury will also auction 2-year notes at 1:00 p.m. ET.

Atlanta Federal Reserve Bank President Dennis Lockhart is set to speak in Atlanta at 1:20 p.m. ET.

© 2016 Benzinga does not provide investment advice. All rights reserved.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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