Also impacting the markets today are a number of weak economic reports including disappointing manufacturing indicators from overseas.
Europe's PMI index, based on a survey of purchasing managers in both the services and manufacturing industries, held steady at 46 which is near a three-year low. A measure of specifically euro-region manufacturing fell to 44.8 from 45.1 - another three-year low - in May, London-based Markit Economics said today in an initial estimate.
Both of those gauges were dragged down by a decrease in Germany's manufacturing output.
China also reported a preliminary PMI index, which if correct at 48.1 would be its lowest level in seven months. PMI levels below 50 indicate contraction.
In the U.S. existing home sales fell 1.5% in May, weekly initial unemployment claims remained depressingly high at 387,000 and the Fed's Philadelphia economic index fell to negative 16.6 in June, its lowest level since August.
Besides those reports there are three companies making headlines in the stock market today, Bed Bath & Beyond Inc. (Nasdaq: BBBY), Phillip Morris International Inc. (NYSE: PM) and Onyx Pharmaceuticals Inc. (Nasdaq: ONXX).
Bed Bath & Beyond (Nasdaq: BBBY): BBBY beat analysts' expectations when the company reported its earnings after yesterday's closing bell, but the stock is down more than 15% today.
The merchandising retailer announced earnings per share (EPS) of 89 cents compared to forecasts of 84 cents a share. Revenue grew by 5%, but that was slightly below Wall Street's expectations.
What is really hurting the stock today is the lower guidance Bed Bath & Beyond issued for the remainder of the year. In the fiscal second quarter BBBY expects to earn 97 cents to $1.03 per share compared to earlier expectations of $1.08 per share.
Bed Bath & Beyond stock has had a great run this year, climbing to an all-time high of $75.83. Some analysts are still bullish on the company even amid its lower outlook.
Wedbush analyst Joan Storms backed her "Outperform" rating and $82 price target for BBBY.
"We believe the company should continue to benefit from industry dominance, good visibility for cross-merchandising opportunities, future growth potential for newer concepts, and strong balance sheet and cash flow," Storms wrote in a note to investors.
As of noon BBBY was still down more than 15% to $62.41.
Phillip Morris International (NYSE: PM): The world's largest tobacco company in terms of revenue also lowered its guidance for the remainder of the year, saying that a stronger dollar is hurting its business overseas.
PMI reported Thursday that foreign exchange fluctuations should trim 25 cents per share from its yearly earnings. The high end of its forecasts now range up to $5.20, down from $5.30.
Speaking to investors today CEO Louis Camilleri said that PMI is handling the changing attitude regarding smoking as more and more people try to quit.
"We are on the eve of what we all believe could be a paradigm shift for our industry and for PMI," Camilleri said.
Phillip Morris stated that profits should rise 10% - 12% from last year excluding the effects of currencies. Shares of PM have climbed more than 25% over the past year but are down more than 2% today on the disappointing news.
Onyx Pharmaceuticals (Nasdaq: ONXX): Onyx is a bright spot in an otherwise gloomy stock market today.
ONXX surged more than 40% in early trading today after U.S. drug advisers backed the company's drug for patients who have failed to successfully treat their blood cancer with other medicines.
The San Francisco-based drug company announced that a panel of independent experts advising the U.S. Food and Drug Administration unanimously voted to recommend approval of Onyx's drug Kyprolis. The FDA will make a final decision by July 27.
Kyprolis is proposed to treat patients with relapsed and refractory multiple myeloma who have received at least two prior lines of therapy. Multiple myeloma is a type of cancer that affects the plasma cells in bone marrow.
As of noon ONXX was up over 40% to $62.67.
The Dow Jones and S&P 500 by noon were both down today, 0.76% and 0.97% respectively.
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