Mid-Morning Market Update: Markets Edge Higher, Family Dollar Profit Beats Estimates
Following the market opening Wednesday, the Dow traded up 0.11 percent to 15,317.62 while the NASDAQ surged 0.23 percent to 3,512.22. The S&P rose, gaining 0.02 percent to 1,652.72.
Family Dollar Stores (NYSE: FDO) reported a better-than-expected third-quarter profit.
Family Dollar’s quarterly profit declined to $120.94 million, or $1.05 per share, versus $124.54 million, or $1.06 per share, in the year-ago period. Its revenue climbed 9% to $2.57 billion from $2.36 billion. However, analysts were estimating earnings of $1.03 per share on revenue of $2.57 billion.
Family Dollar narrowed its full-year earnings forecast to $3.77 to $3.82 per share, versus its earlier view of $3.73 to $3.93 per share.
Equities Trading UP
Nu Skin Enterprises (NYSE: NUS) shot up 8.77 percent to $72.40 after the company lifted its forecast for the second quarter and full year.
Shares of Allscripts Healthcare Solutions (NASDAQ: MDRX) got a boost, shooting up 6.68 percent to $14.27 after the company reported that it projects Q2 bookings to exceed $200 million.
Cliffs Natural Resources (NYSE: CLF) was also up, gaining 5.66 percent to $17.32 after the company announced the resignation of its CEO Joseph Carrabba.
Equities Trading DOWN
Shares of Nabors Industries (NYSE: NBR) were down 4.42 percent to $15.29 on downbeat Q2 outlook.
Fastenal Company (NASDAQ: FAST) was down, falling 3.14 percent to $45.62 on Q2 results.
Wells Fargo & Company (NYSE: WFC) shares tumbled 1.01 percent to $42.27. Sandler O'Neill downgraded Wells Fargo from “buy” to “hold.”
In commodity news, oil traded up 1.88 percent to $105.48, while gold traded up 0.58 percent to $1,253.10.
Silver traded up 0.51 percent Wednesday to $19.24, while copper rose 0.59 percent to $3.08.
European shares were lower following the new bank rules. Eurozone leaders reached an agreement on winding down failing banks despite German reticence. Leaders agreed that the EU can wind down failing banks, not individual countries, a key point that Germany would not endorse.
The Spanish Ibex Index fell 0.72 percent and the Italian FTSE MIB Index dropped 0.77 percent. Meanwhile, the German DAX tumbled 0.11 percent and the French CAC 40 fell 0.21 percent while U.K. shares declined 0.33 percent.
The MBA’s index of mortgage application activity dropped 4.0 percent for the week ending July 5, 2013.
US wholesale inventories declined 0.50% in May, versus economists’ estimates for a 0.30% gain.
The FOMC will release minutes of its latest meeting at 2:00 p.m. ET, while the Federal Reserve Chairman Ben Bernanke is expected to speak at 4:10 p.m. ET.
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