Mid-Morning Market Update: Markets Open Lower; CVS Health Issues Weak Guidance

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Following the market opening Tuesday, the Dow traded down 0.27 percent to 18,209.71 while the NASDAQ declined 0.37 percent to 5,147.04. The S&P also fell, dropping 0.35 percent to 2,124.15.

Leading and Lagging Sectors

Tuesday morning, utilities shares gained by 0.73 percent. Meanwhile, top gainers in the sector included Pure Cycle Corporation (NASDAQ: PCYO ), and Atlantic Power Corp (NYSE: AT ).

In trading on Tuesday, energy shares dropped by 0.56 percent. Meanwhile, top losers in the sector included CGG SA (ADR) (NYSE: CGG ), down 28 percent, and Bristow Group Inc (NYSE: BRS ), down 6 percent.

Top Headline

CVS Health Corp (NYSE: CVS ) delivered better than expected EPS for the third quarter though revenue missed. However, the company offered downbeat guidance for the fourth quarter and next year.

CVS Health reported adjusted EPS of $1.64, beating expectations by $0.07. Its revenue rose 15.5 percent to $44.6 billion, missing estimates by $0.69 billion.

The company offered adjusted EPS forecast of $1.64 to $1.70 for the fourth quarter, versus expectations of $1.79. CVS lowered and narrowed full year adjusted EPS from $5.81-$5.89 to $5.77-$5.83. For the full year 2017, CVS expects adjusted EPS of $5.77-$5.93, versus estimates of $6.53.

Equities Trading UP

Stone Energy Corporation (NYSE: SGY ) shares shot up 28 percent to $5.14 folloiwng Q3 results. Stone Energy reported a Q3 adjusted loss of $7.40 per share.

Shares of Osiris Therapeutics, Inc. (NASDAQ: OSIR ) got a boost, shooting up 17 percent to $4.91. Osiris Therapeutics expects that 2014 will restate revenue to $46 million-$50 million. The company projects 2015 revenue of $85 million to $90 million and FY16 revenue of$100 million to $110 million.

Addus Homecare Corporation (NASDAQ: ADUS ) shares were also up, gaining 19 percent to $30.85 after the company posted strong Q3 results.

Equities Trading DOWN

Hertz Global Holdings, Inc (NYSE: HTZ ) shares dropped 49 percent to $18.15 after the company reported weaker-than-expected results for the third quarter and provided downbeat forecast for the full year.

Shares of BioScrip Inc (NASDAQ: BIOS ) were down 46 percent to $1.40. BioScrip reported a Q3 loss from continuing operations of $0.12 per share on revenue of $224.5 million. The company also raised its FY16 sales outlook.

OneMain Holdings Inc (NYSE: OMF ) was down, falling around 39 percent to $16.91 on weak Q3 earnings. Several analysts downgraded the stock following results.


In commodity news, oil traded down 0.62 percent to $44.61 while gold traded up 0.16 percent to $1,281.40.

Silver traded up 0.68 percent Tuesday to $18.28, while copper rose 0.52 percent to $2.32.


European shares were mostly lower today. The eurozone's STOXX 600 slipped 0.13 percent, the Spanish Ibex Index fell 0.50 percent, while Italy's FTSE MIB Index dropped 0.40 percent. Meanwhile the German DAX declined 0.16 percent, and the French CAC 40 fell 0.20 percent while U.K. shares rose 0.06 percent.


The NFIB small business optimism index rose to 94.9 in October, versus a reading of 94.1 in September.

The Johnson Redbook Retail Sales Index declined 0.2 percent during the first week of November versus October.

The Treasury is set to auction 4-and 52-week bills at 11:30 a.m. ET.

Chicago Fed President Charles Evans is set to speak at the UBS Knowledge Network event "Luncheon Discussion with Charles Evans" in New York at 12:20 p.m. ET.

The Treasury will auction 3-year notes at 1:00 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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