Mid-Morning Market Update: Markets Surge; American Eagle Issues Downbeat Profit Forecast
Following the market opening Friday, the Dow traded up 0.86 percent to 15,957.10 while the NASDAQ surged 0.69 percent to 4,061.09. The S&P also rose, gaining 0.87 percent to 1,800.49.
American Eagle now projects Q4 earnings of $0.26 to $0.30 per share, versus analysts' estimates of $0.39 per share.
American Eagle's quarterly profit declined to $24.9 million, or $0.13 per share, versus a year-ago profit of $78.6 million, or $0.39 per share. Its adjusted earnings fell to $0.19 per share from $0.41 per share. Its revenue dropped to $857.3 million from $910.4 million. However, analysts were estimating earnings of $0.19 per share on revenue of $856 million.
Equities Trading UP
Geron (NASDAQ: GERN) shot up 15.16 percent to $6.76 on a report released by Mayo Clinic on Imetelstat.
Veeva Systems (NYSE: VEEV) was also up, gaining 7.11 percent to $43.90 after the company reported upbeat Q3 results.
Equities Trading DOWN
Shares of Ulta Salon, Cosmetics & Fragrance (NASDAQ: ULTA) were down 19.58 percent to $94.89 after the company reported downbeat third-quarter results and issued a weak fourth-quarter outlook. Piper Jaffray downgraded the stock from Overweight to Neutral and lowered the target price from $129 to $113.
Big Lots (NYSE: BIG) shares tumbled 10.40 percent to $33.27 after the company reported posted a Q3 loss of $0.17 per share on revenue of $1.15 billion.
Five Below (NASDAQ: FIVE) was down, falling 4.69 percent to $45.51 after the company issued a weak forecast for the fourth quarter.
In commodity news, oil traded down 0.10 percent to $97.28, while gold traded up 0.43 percent to $1,237.20.
Silver traded up 0.23 percent Friday to $19.62, while copper rose 0.63 percent to $3.25.
European shares were mostly higher today. The Spanish Ibex Index tumbled 0.08 percent, while Italy's FTSE MIB Index surged 0.84 percent. Meanwhile, the German DAX gained 1.02 percent and the French CAC 40 climbed 0.77 percent while U.K. shares rose 0.74 percent.
The U.S. economy added 203,000 jobs in November, while the country's unemployment rate declined to 7.0% from 7.3%. However, economists were projecting a gain of 185,000 jobs.
U.S. consumer spending increased 0.3% in October, while personal income dropped 0.1% in the month. However, economists were expecting a 0.3% gain in both consumer spending and personal income.
The preliminary reading of the Reuter's/University of Michigan's consumer sentiment index rose to 82.50 in December, from a final reading of 75.10 in November. However, economists were expecting a reading of 76.00.
Data on consumer credit will be released at 3:00 p.m. ET.
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