Mid-Day Market Update: Mattel Tumbles Following Announcement Of CEO Resignation; Universal Display Shares Spike Higher

Midway through trading Monday, the Dow traded down 0.12 percent to 17,651.18 while the NASDAQ slipped 0.03 percent to 4,756.38. The S&P also fell, dropping 0.01 percent to 2,051.54.

Leading and Lagging Sectors

In trading on Monday, energy shares were relative leaders, up on the day by about 0.90 percent. Meanwhile, top gainers in the sector included Breitburn Energy Partners L.P. BBEP, up 13.1 percent, and CGG CGG, up 8.4 percent.

Technology shares dropped 0.47 percent in the US market on Monday. Top losers in the sector included Seagate Technology Public Limited Company STX, down 8.2 percent, Western Digital Corporation WDC, off 6.4 percent.

Top Headline

D.R. Horton Inc. DHI reported stronger-than-expected earnings for its fiscal first quarter.

The Fort Worth, Texas-based company posted quarterly earnings of $142.5 million, or $0.39 per share, compared to $123.2 million, or $0.36 per share, in the year-ago period.

Its revenue surged to $2.25 billion from $1.64 billion, while home sales jumped to $2.24 billion versus $1.63 billion. However, analysts were expecting earnings of $0.34 per share on revenue of $2.1 billion. Analysts expected home sales of $2.06 billion.

Equities Trading UP Universal Display Corp. OLED shares shot up 14.57 percent to $32.31 following the announcement of patent license and supplemental material purchase agreements with LG.

Shares of Regency Energy Partners LP RGP got a boost, shooting up 6.32 percent to $25.25. Energy Transfer Partners ETP and Regency Energy Partners agreed to merge in an $18 billion unit-for-unit deal.

MeadWestvaco Corporation MWV shares were also up, gaining 17.38 percent to $52.87. Rock-Tenn Company RKT and MeadWestvaco agreed to a $16 billion merger. MeadWestvaco also reported upbeat earnings for the fourth quarter.

Equities Trading DOWN

Seagate Technology Public Limited Company STX shares tumbled 8.24 percent to $58.71. Seagate reported in-line earnings for the fourth quarter. However, the company’s revenue missed analysts’ estimates.

Shares of Brookdale Senior Living Inc. BKD were down 10.02 percent to $33.03 after the company reported preliminary fourth quarter results.

Mattel, Inc. MAT was down, falling 3.25 percent to $27.13 after the company announced the resignation of its CEO Bryan Stockton. The company also reported weak preliminary results for the fourth quarter.

Commodities

In commodity news, oil traded up 0.09 percent to $45.63, while gold traded down 1.07 percent to $1,278.80.

Silver traded down 1.94 percent Monday to $17.95, while copper rose 1.24 percent to $2.53.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 gained 0.58 percent, the Spanish Ibex Index rose 1.18 percent, while Italy’s FTSE MIB Index gained 1.15 percent. Meanwhile, the German DAX surged 1.44 percent, and the French CAC 40 climbed 0.81 percent while UK shares gained 0.34 percent.

Economics

The Dallas Fed general business activity index slipped to a reading of -4.40 in January, versus a prior reading of 4.10. However, economists were expecting a reading of 4.00.