Mid-Afternoon Market Update: Strong U.S. Auto Sales Numbers Unable to Buoy Market as Indexes Go Red
Toward the end of trading Tuesday, the Dow traded down 0.81 percent to 15,879.09 while the NASDAQ tumbled 0.46 percent to 4,026.29. The S&P also fell, dropping 0.58 percent to 1,790.86.
Yesterday, Krispy Kreme Doughnuts (NYSE: KKD) reported a 34% rise in its Q3 profit. However, the company issued downbeat forecast for fiscal 2015.
Krispy Kreme's quarterly profit surged to $6.8 million, or $0.09 per share, from a year-earlier profit of around $5 million, or $0.07 per share. Excluding special items, it earned $0.16 per share.
Its revenue climbed 7% to $114.2 million from $107.1 million. However, analysts were expecting adjusted earnings of $0.15 per share on revenue of $114.1 million.
Shares of Tesla Motors (NASDAQ: TSLA) got a boost, shooting up 15.50 percent to $143.42 after the company announced that the German regulator has closed review of Model S incidents. Morgan Stanley also named the stock a Top Pick in the auto sector.
Abercrombie & Fitch (NYSE: ANF) was also up, gaining 5.22 percent to $35.80 after Engaged Capital sent a letter to the company urging the board to start a search for a new CEO or to seek a sale of the company. Later in the day, the company's board said it was ‘committed to creating shareholder value' and that it welcomed input from shareholders.
GT Advanced Technologies (NASDAQ: GTAT) shares tumbled 6.44 percent to $9.30 after the company announced its plans to offer $125 million convertible senior notes and 12 million shares of common stock.
AMR Corporation (OTC: AAMRQ), the parent company of American Airlines, traded down 6.35 percent to $10.90 on Tuesday's session after the auto industry posted strong sales growth numbers, possibly hinting at an increased willingness from consumers to pursue travel via automobile rather than air.
In commodity news, oil traded up 2.32 percent to $96.00, while gold traded down 0.03 percent to $1,221.50.
Silver traded down 0.18 percent Tuesday to $19.13, while copper fell 0.52 percent to $3.17.
European shares were lower today. The Spanish Ibex Index tumbled 1.44 percent, while Italy's FTSE MIB Index declined 1.95 percent. Meanwhile, the German DAX dropped 1.90 percent and the French CAC 40 declined 2.65 percent while U.K. shares fell 0.95 percent.
The ICSC-Goldman Sachs store sales index declined 2.8% in the week ended Saturday versus the earlier week.
The Johnson Redbook Retail Sales Index fell 0.2% in the first four weeks of November versus October.
U.S. home prices climbed 0.2% in October, CoreLogic reported.
The Treasury is set to auction 3-and 6-month bills.
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