Mid-Morning Market Update: Markets Extend Gains, American Eagle Issues Weak Outlook

Following the market opening Wednesday, the Dow traded up 0.27 percent to 14,291.72 while the NASDAQ rose 0.08 percent to 3,226.56. The S&P also rose, gaining 0.12 percent to 1,541.61.

The S&P 500 looks to break out over its 1,531 resistance today as its MACD attempts a bullish cross on the daily chart. The trendline starting from November 16tj to December 31st should hold. The Dow looks set to break out over its 2007 high of 14,198. The Russell looks set to head upwards to test the 932 resistance after finding support at 894. Finally, the NASDAQ looks set to break out over its September 2012 highs of 3,197 for a 2nd attempt, while its MACD will also try a bullish cross today.

American Eagle Outfitters

reported a rise in its profit for the fourth quarter and issued a weak sales outlook. For the first quarter, American Eagle expects earnings of $0.16 to $0.19 per share, missing analysts' estimates of $0.25 per share. Its fourth-quarter net income climbed to $94.8 million, or $0.47 per share, versus $51.3 million, or $0.26 per share, in the year-ago period. Its same-store sales increased 4%, while overall revenue climbed 8.6% to $1.12 billion.

MGIC Investment

shot up 12.17 percent to $5.99 after the company announced a public offering of 135 million shares of its common stock and $350 million in senior notes. Shares of Petrobras

got a boost, shooting up 11.51 percent to $16.16 after lifting diesel fuel prices . VeriFone Systems

was also up, gaining 8.05 percent to $20.80 after the company swung to a profit in the first quarter.

The Fresh Market

shares tumbled 11.70 percent to $37.57 after the company reported a 15.3% rise in its Q4 net sales. American Eagle Outfitters

was also down, falling 11.09 percent to $20.08 after the company issued a weak sales outlook. Shares of Sohu.com

were down 7.72 percent to $45.07 after the company denied plans to go private.

In commodity news, oil traded down 0.56 percent to $90.31, while gold traded down 0.15 percent to $1,572.50. Silver traded up 0.21 percent Wednesday to $28.67, while copper fell 0.26 percent to $3.51.

European shares were higher led by German shares boosted by industrial stocks.Eurozone GDP for the fourth quarter was confirmed at a 0.6 percent contraction in the latest revision, in line with estimates and the same as the prior estimate. The Spanish Ibex Index rose 0.27 percent and the Italian FTSE MIB Index gained 0.57 percent. The STOXX Europe 600 Index rose 0.21 percent, London's FTSE 100 Index surged 0.37 percent, French CAC 40 Index rose 0.03 percent and German DAX 30 index climbed 1.04 percent.

US economy added 198,000 private jobs in February, according to Automatic Data Processing. However, economists were expecting a rise of 175,000 private-sector jobs. The MBA's index of mortgage application activity rose 14.8% in the latest week ended March 1, 2013. US factory orders dropped 2% in January, versus estimates for a 2.2% decline. Charles Plosser of the Philadelphia Fed is set to speak and Richard Fisher of the Dallas Fed is set to speak twice. In addition, the Treasury is set to auction STRIPS.