Market Outlook for Thursday, January 19, 2017

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News - "Mid-Afternoon Market Update: Dow Slides Over 100 Points; CSX Shares Spike Higher"

Toward the end of trading Thursday, the Dow traded down 0.54 percent to 19,697.93 while the NASDAQ slipped 0.34 percent to 5,536.79. The S&P also fell, dropping 0.47 percent to 2,261.15.

Leading and Lagging Sectors

Telecommunications services shares gained around 0.05 percent in trading on Thursday. Meanwhile, top gainers in the sector included Mobil'nye Telesistemy PAO (ADR) (NYSE: MBT), and TIM Participacoes SA (ADR) (NYSE: TSU).

In trading on Thursday, healthcare shares fell by 0.99 percent. Meanwhile, top losers in the sector included Sangamo Therapeutics Inc (NASDAQ: SGMO), down 6 percent, and PharmAthene, Inc. (NYSE: PIP), down 6 percent.

Top Headline

Netflix, Inc. (NASDAQ: NFLX) reported stronger-than-expected earnings for its fourth quarter on Wednesday.

Netflix reported Q4 EPS of $0.15 on revenue of $2.48 billion. Analysts expected earnings of 0.14 per share on revenue of.$2.47 billion.

The company added 1.93 million domestic subscribers and 5.12 million subscribers internationally during the quarter.


Equities Trading UP

CSX Corporation (NASDAQ: CSX) shares shot up 20 percent to $44.35 following a report that outgoing Canadian Pacific Railway Limited (USA) (NYSE: CP) CEO Hunter Harrison has teamed up with activist investor Paul Hilal to target a purchase of the company. Morgan Stanley upgraded CSX from Underweight to Equal-Weight.

Shares of Viewray Inc (NASDAQ: VRAY) got a boost, shooting up 43 percent to $4.50. ViewRay disclosed that the German Research Foundation has purchased a MRIdian Linac for the University Clinic Heidelberg. On Wednesday, ViewRay also reported that it has raised $26.1 million in private placement.

Oclaro, Inc. (NASDAQ: OCLR) shares were also up, gaining 16 percent to $9.46 after the company reported strong preliminary results for its second quarter.


Equities Trading DOWN

Zynerba Pharmaceuticals Inc (NASDAQ: ZYNE) shares dropped 17 percent to $18.61 after the company reported a proposed public offering of common stock.

Shares of Rent-A-Center Inc (NASDAQ: RCII) were down around 21 percent to $8.09 after the company issued a weak Q4 forecast.

DryShips Inc. (NASDAQ: DRYS) was down, falling around 28 percent to $1.14. DryShips reported a 1-for-8 reverse stock split.


Commodities


In commodity news, oil traded up 0.17 percent to $51.98 while gold traded down 0.86 percent to $1,201.70.

Silver traded down 1.73 percent Thursday to $16.98, while copper fell 0.36 percent to $2.61.

Eurozone

European shares closed mostly lower today. The eurozone’s STOXX 600 slipped 0.06 percent, the Spanish Ibex Index fell 0.08 percent, while Italy’s FTSE MIB Index climbed 0.69 percent. Meanwhile the German DAX declined 0.02 percent, and the French CAC 40 fell 0.25 percent while U.K. shares fell 0.54 percent.

Economics

Housing starts rose 11.3 percent in December to an annual pace of 1.23 million. Economists expected a rate of 1.2 million for December.

Initial jobless claims dropped 15,000 to 234,000 in the week ended January 14. However, economists were projecting claims to reach 245,000 in the week.

The Philadelphia Fed manufacturing index rose to 23.60 in January, versus a prior reading of 21.50. Economists estimated a reading of 15.80.

San Francisco Federal Reserve Bank President John C. Williams is set to speak in Fairfield, Calif. at 10:00 a.m. ET.

Natural gas supplies dropped 243 billion cubic feet for the latest week, the Energy Information Administration reported. Analysts were expecting a decline of 231 billion cubic feet.

Crude oil supplies rose 2.35 million barrels for the week ended January 13, the U.S. Energy Information Administration reported. Analysts projected a drop of 342,000 barrels. Gasoline supplies rose 6 million barrels, while distillate stockpiles dropped 1 million barrels.

Data on money supply for the recent week will be released at 4:30 p.m. ET.

Federal Reserve Chair Janet Yellen is set to speak in Stanford, Calif. at 8:00 p.m. ET.

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Today's Earnings
TickerCompany NameTime
AMNBAmerican National4:00 PM
ASBAssociated Banc4:00 PM
AXPAmerican Express4:00 PM
BBTBB&T8:00 AM
BKBank of New York Mellon8:00 AM
BMTCBryn Mawr Bank4:00 PM
BSETBassett Furniture Inds9:00 AM
BSFBear State Financial8:00 AM
CBANColony Bankcorp8:00 AM
CHCOCity Holding7:00 AM
CHKPCheck Point Software8:00 AM
CVLYCodorus Valley Bancorp5:00 PM
CZFCCitizens First3:00 PM
ENFCEntegra Financial Corp. - Common Stock4:00 PM
FFBCFirst Financial Bancorp4:00 PM
FFINFirst Financial4:00 PM
GATXGATX Corporation Common Stock8:00 AM
GFEDGuaranty Federal9:00 AM
HOMBHome BancShares8:00 AM
IBMIBM4:00 PM
ICBKCounty Bancorp8:00 AM
IIINInsteel Industries6:30 AM
INBKFirst Internet4:00 PM
INDBIndependent Bank4:00 PM
JBHTJB Hunt Transport8:00 AM
KCGKCG Holdings8:00 AM
KEYKeyCorp8:00 AM
LIONFidelity Southern4:00 PM
MTBM&T Bank8:00 AM
MTGMGIC Investment8:00 AM
PACWPacWest Bancorp7:00 AM
PBCTPeople's United4:00 PM
PFBCPreferred Bank4:00 PM
PPGPPG Industries8:00 AM
SASRSandy Spring Bancorp8:00 AM
SBFGSB Financial Group4:00 PM
SBNYSignature Bank8:00 AM
SRCE1st Source4:00 PM
SWKSSkyworks Solutions4:00 PM
TEAMAtlassian Corporation Plc - Class A Ordinary Shares4:00 PM
UBOHUnited Bancshares, Inc. - Common Stock4:00 PM
UNPUnion Pacific8:00 AM
WABCWestamerica Bancorp10:56 AM
WBSWebster Financial7:30 AM
WNSWNS6:00 AM
XRSTAL Education Group8:00 AM
Today's Economic Events
Event NamePeriodYearTime
IEA Monthly Report 20164:00 AM
Philly Fed New OrdersJan20168:30 AM
Philly Fed PricesJan20168:30 AM
Building PermitsDec20168:30 AM
Building Permits (MoM)Dec20168:30 AM
Housing StartsDec20168:30 AM
Housing Starts (MoM)Dec20168:30 AM
Philadelphia Fed Manufacturing IndexJan20168:30 AM
Philly Fed Business OutlookJan20168:30 AM
Philly Fed CapEx IndexJan20168:30 AM
Philly Fed EmploymentJan20168:30 AM
Jobless Claims 4-Week Avg. 20168:30 AM
Initial Jobless ClaimsJan 1320168:30 AM
Continuing ClaimsJan 620168:30 AM
EIA Natural Gas InventoriesJan 13201610:30 AM
EIA Gasoline InventoriesJan 13201611:00 AM
EIA Heating Oil Inventories 201611:00 AM
EIA Gasoline Output/Production 201611:00 AM
EIA Distillate InventoriesJan 13201611:00 AM
EIA Distillate Output 201611:00 AM
EIA Cushing Inventories 201611:00 AM
EIA Crude Imports 201611:00 AM
EIA Crude Oil InventoriesJan 13201611:00 AM
U.S. President Trump Speaks  11:15 AM
10-Year TIPS Auction 20161:00 PM
FOMC Member Williams Speaks  3:45 PM
Fed Chair Yellen Speaks  8:00 PM
Movers & Shakers - "15 Biggest Mid-Day Losers For Thursday"
    DryShips Inc. (NASDAQ: DRYS) shares dipped 27.7 percent to $1.15. DryShips reported a 1-for-8 reverse stock split. Rent-A-Center Inc (NASDAQ: RCII) declined 17.5 percent to $8.40 after the company issued a weak Q4 forecast. GNC Holdings Inc (NYSE: GNC) shares declined 17.2 percent to $9.23. Goldman Sachs downgraded GNC from Neutral to Sell. Zynerba Pharmaceuticals Inc (NASDAQ: ZYNE) shares dropped 16.6 percent to $18.72 after the company reported a proposed public offering of common stock. ITUS Corp (NASDAQ: ITUS) declined 16.2 percent to $4.40 after the company reported a common stock rights offering. Uni-Pixel Inc (NASDAQ: UNXL) fell 15.4 percent to $1.43. On Wednesday, Uni-Pixel reported a preferred equity financing for $3 million and entered into a Memorandum of Understanding with General Interface Solution, Limited. Apricus Biosciences Inc (NASDAQ: APRI) shares dropped 15.1 percent to $2.43 after surging 89.40 percent on Wednesday. Izea Inc (NASDAQ: IZEA) shares declined 13.4 percent to $4.41. Sunshine Heart Inc (NASDAQ: SSH) dropped 12.6 percent to $6.69. Sunshine Heart shares have surged 601.83 percent over the past 52 weeks, while the S&P 500 index has gained 20.76 percent in the same period. Diffusion Pharmaceuticals Inc (NASDAQ: DFFN) declined 11.3 percent to $4.45. Diffusion Pharmaceuticals shares have declined 49.90 percent over the past 52 weeks, while the S&P 500 index has gained 20.76 percent in the same period. Dean Foods Co (NYSE: DF) dropped 6.8 percent to $19.87. Bernstein downgraded Dean Foods from Outperform to Market Perform. United States Steel Corporation (NYSE: X) declined 5.6 percent to $32.96. Citigroup downgraded United States Steel from Buy to Neutral. Magellan Petroleum Corporation (NASDAQ: MPET) shares fell 5 percent to $12.51 after dropping 17.45 percent on Wednesday. Can Fite Biopharma Ltd (ADR) (NYSE: CANF) fell 4.4 percent to $2.15 in pre-market trading after the company reported a $5 million registered direct offering. Viper Energy Partners LP (NASDAQ: VNOM) fell 4.3 percent to $15.99. Viper Energy Partners reported an offering of 7 million units.