Mid-Morning Market Update: Markets Surge, Target Posts Lower Profit

Following the market opening Wednesday, the Dow traded up 0.55 percent to 15,472.44, while the NASDAQ rose 0.52 percent to 3,520.40. The S&P was also up, gaining 0.59 percent to 1,678.95.

Target

reported a drop in its first-quarter profit. Target's quarterly profit declined to $498 million, or $0.77 per share, versus $697 million, or $1.04 per share, in the year-ago period. Its adjusted earnings per share came in at $1.05 per share. Its revenue dropped to $16.71 billion from $16.87 billion. However, analysts were projecting earnings of $0.95 per share on revenue of $16.85 billion. Target cut its full-year adjusted earnings forecast to a range of $4.70 to $4.90 per share, versus a previous range of $4.85 to $5.05 per share.

Saks

shot up, gaining 16.02 percent to $15.86, after the New York Post reported that Saks has hired Goldman Sachs to explore strategic alternatives including a sale. NetApp

was also up 5 percent to $38.46, after the company announced its plans to cut 900 jobs. The company boosted its stock repurchase plan to $3 billion and also said that it will start paying a quarterly dividend of $0.15 per share. Dycom Industries

got a boost, shooting up 10.49 percent to $22.55 on Q3 results

CVR Partners LP

was down, falling 6.68 percent to $24.60, after the company announced the pricing of secondary offering of common units by CVR Energy. Sensata Technologies Holding NV

shares tumbled 3.07 percent to $35.56 after the company reported that certain of its existing shareholders have agreed to sell 12,500,000 ordinary shares. Target

was down 3.25 percent to $68.94 after the company reported a 29% drop in its first-quarter profit.

In commodity news, oil traded down 0.42 percent to $95.78, while gold surged 1.18 percent to $1,393.90. Silver traded up 1.54 percent Wednesday to $22.80, while copper rose 2.03 percent to $3.41.

European shares were mostly lower on Wednesday. The Spanish Ibex Index fell 0.58 percent and the Italian FTSE MIB Index gained 0.19 percent. Meanwhile, the German DAX fell 0.06 percent and the French CAC 40 dropped 0.29 percent while U.K. shares added 0.13 percent.

The MBA index of mortgage application activity declined 9.8 percent in the week ended May 17. Existing-home sales increased 0.6% to an annual rate of 4.97 million in April. However, sales of existing homes jumped 9.7% y/y. Dallas Federal Reserve Bank President Richard Fisher is set to speak in Nacogdoches, Texas at 1:00 p.m. ET.