Mid-Afternoon Market Update: Retailers Hurting As Lowe's Rises
Toward the end of trading Wednesday, the Dow traded down 0.26 percent to 14,963.53 while the NASDAQ gained 0.09 percent to 3,616.02. The S&P also fell, dropping 0.09 percent to 1,650.66.
Lowe's Companies (NYSE: LOW) reported a 26% rise in its fiscal second quarter earnings and lifted its forecast for the year. Lowe's quarterly profit surged to $941 million, or $0.88 per share, from $747 million, or $0.64 per share, in the year-earlier period. Its net sales climbed 10% to $15.71 billion.
However, analysts were expecting earnings of $0.79 per share on revenue of $15.07 billion. Lowe's now projects full-year earnings of $2.10 per share on sales growth of 5%. The company had earlier expected earnings of $2.05 per share on sales growth of 4%.
Shares of Lowe's Companies (NYSE: LOW) got a boost, shooting up 4.33 percent to $45.99 after the company reported a 26% rise in its fiscal second quarter earnings and lifted its forecast for the year.
Trina Solar (NYSE: TSL) was also up, gaining 14.71 percent to $8.97 after Cowen & Company upgraded the stock from Market Perform to Outperform.
In commodity news, oil traded up 0.04 percent to $105.00, while gold traded down 0.14 percent to $1,370.00. Silver traded up 1.36 percent Wednesday to $23.33, while copper fell 0.27 percent to $3.33.
European shares were lower today. The Spanish Ibex Index tumbled 0.48 percent, while Italy's FTSE MIB Index dropped 0.72%. Meanwhile, the German DAX declined 0.18 percent and the French CAC 40 dipped 0.34 percent while U.K. shares fell 0.97 percent.
The Mortgage Bankers Association reported that its index of mortgage application activity declined 4.6% in the week ended August 16. US existing-home sales climbed 6.5% to an annual rate of 5.39 million. However, economists were estimating a sales rate of 5.21 million. Crude oil supplies declined 1.4 million barrels for the week ended Aug. 16, the US Energy Information Administration reported. However, analysts were expecting a 1 million-barrel drop. The Federal Open Market Committee will issue minutes of its latest meeting at 2:00 p.m. ET.
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