Market Overview

Mid-Afternoon Market Update: La-Z-Boy Rises on Earnings While Millennial Media Takes a Beating

Toward the end of trading Wednesday, the Dow traded down 0.66 percent to 13,943.40 while the NASDAQ fell 1.35 percent to 3,170.18. The S&P also fell, decreasing 1.10 percent to 1,514.25.

Index Technicals:
For technicals on the major indices today, the S&P looks to have support at 1525, while it is displaying resistance at 1531.

The NASDAQ looks set to stall at 3213.50 after holding its breakout over the September 21 highs of 3197.

The Dow is showing intraday support from 14,020-14,022, while holding resistance at 14,045.

The RUT looks to be holding a 915 breakout sitting at 920 highs.

Top Headline
The Office Depot (NYSE: ODP) and OfficeMax (NYSE: OMX) merger seemingly went through this morning after being announced in a clause at the bottom of an earnings release. Following the report, the release was taken down from the company website and the finalization of the merger was denied. Despite the odd activity, both stocks traded up roughly 6 percent at the market opening.

Equities Trading UP
Netspend Holdings (NASDAQ: NTSP) shot up 28.56 percent to $15.80 after it was announced that TSYS would acquire the company for $16 per share.

Shares of La-Z-Boy Incorporated (NYSE: LZB) traded up 12.74 percent to $17.43 after the company's third-quarter earnings announcement this morning.

Allscripts Healthcare Solutions (NASDAQ: MDRX) shot up 13.33 percent to $12.67 despite posting an earnings miss on the bottom line after the close yesterday. Early this morning, Jefferies maintained its Hold while ISI Group maintained its Buy on the company, while raising its price target to $14.

Equities Trading DOWN
Millennial Media (NYSE: MM) dropped a staggering 37.75 percent to $8.92 after the company missed on the top line of its earnings report and lowered its first-quarter and fiscal year guidance.

Owens Corning (NYSE: OC) took at 9.58 percent hit Wednesday, falling to $39.19 after missing analyst estimates on the bottom line this morning.

Shares of Garmin (NASDAQ: GRMN) were down as well, dropping 9.88 percent to $35.37 after the company reported its fourth quarter results and missed analyst expectations.

Commodities
In commodity news, oil traded down 2.18 percent to $94.98, while gold traded down 2.64 percent to $1,561.40.

Silver traded up 0.89 percent Wednesday to $28.53.

Eurozone
In the eurozone this morning, markets were mixed after many peripheral companies fell on fears from the financial sector. The Spanish Ibex was at the bottom of markets, falling 0.41 percent, while the French CAC and U.K. shares both lead the upside, gaining 0.28 percent.

Economics
Wednesday was a heavy day for economic news, getting things started with PPI month over month which came in at 0.20 percent, missing projections of 0.30 percent, but beating the prior report of -0.20 percent, while the PPI year over year was reported at 1.40 percent, missing expectations of 1.50 percent, but also beating the previous release of 1.30 percent.

Core PPI was reported as well, coming in at 1.80 percent, slightly beating expectations which were set at 1.70 percent, but missing the prior figure of 2.0 percent.

Building permits were released, coming in at 925K, beating the 920K estimates and the revised prior figure of 909K, while housing starts came in at 890K, missing projections of 920K and the revised previous report of 973K.

MBA mortgage applications were also out, coming in at -1.70 percent, much better than the prior report of -6.40 percent.

Posted-In: Earnings News Guidance Commodities M&A Global Econ #s Economics

 

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