Mid-Morning Market Update: Markets Open Higher, Walgreen Profit Misses Estimates
Following the market opening Tuesday, the Dow traded up 0.56 percent to 14,742.16 while the NASDAQ gained 0.57 percent to 3,339.85. The S&P rose, surging 0.62 percent to 1,582.86.
Walgreen Co (NYSE: WAG) reported downbeat fiscal third-quarter earnings.
Walgreen's quarterly profit surged to $624 million, or $0.65 per share, from $537 million, or $0.62 per share, in the year-ago period. Excluding one-time items, its adjusted earnings came in at $0.85 per share.
Its revenue rose 3.2% to $18.31 billion, while same-store sales climbed 1.4%. However, analysts were expecting earnings of $0.91 per share on revenue of $18.43 billion. Walgreen's gross margin widened to 28.5% from 28.2%.
Equities Trading UP
Cytokinetics (NASDAQ: CYTK) shot up 6.10 percent to $13.05 after the company and Astellas announced collaboration in skeletal muscle activation field.
Shares of Lennar (NYSE: LEN) got a boost, shooting up 2.96 percent to $36.03 after the company reported upbeat Q2 profit.
William Lyon Homes (NYSE: WLH) was also up, gaining 3.76 percent to $24.86 after JP Morgan initiated coverage on the stock with a “neutral” rating.
Equities Trading DOWN
Shares of Demand Media (NYSE: DMD) were down 20.44 percent to $6.50 after the company reported that it has bought Society6 for around $94 million in cash and stock. The company also cut its revenue forecast for the second quarter.
Barnes & Noble (NYSE: BKS) was down, falling 9.54 percent to $17.02 after the company posted a wider fiscal fourth-quarter loss.
Walgreen Co (NYSE: WAG) shares tumbled 6.10 percent to $45.12 after the company reported downbeat fiscal third-quarter earnings.
In commodity news, oil traded up 0.53 percent to $95.68, while gold traded up 0.29 percent to $1,280.80.
Silver traded up 0.65 percent Tuesday to $19.65, while copper rose 1.29 percent to $3.07.
European shares were mostly higher today as officials from both the Bank of England and the European Central Bank reiterated that easy-money policy will be around for some time. The Spanish Ibex Index rose 0.95 percent and the Italian FTSE MIB Index declined 0.56 percent. Meanwhile, the German DAX rose 1.29 percent and the French CAC 40 jumped 1.50 percent while U.K. shares surged 0.96 percent.
The ICSC/Goldman Sachs Store Sales Index surged 1.1% in the latest week ended Saturday versus the earlier week.
US durable-goods orders rose 3.6% in May, versus economists' expectations for a 3.8% gain.
The Johnson Redbook Retail Sales Index for the first three weeks of June declined 0.5% versus May.
The S&P/Case-Shiller home price index surged 2.5% in April. However, home prices surged 12.1% y/y in April.
The Richmond Fed Manufacturing Index rose to 8.00 in June, versus a prior reading of -2.00. However, economists were expecting a reading of 2.00.
The Conference Board's consumer confidence index surged to 81.4 in June, versus 74.3 in May. However, economists were projecting a reading of 74.0.
Sales of new homes surged 2.1% to an annual rate of 476,000 in May, versus 466,000 in April. However, economists were expecting an annual rate of 464,000 in May.
The Treasury is expected to auction 4- and 52-week bills as well as 2-year notes.
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