Mid-Morning Market Update: Markets Fall; Joy Global Profit Misses Estimates
Following the market opening Wednesday, the Dow traded down 0.46 percent to 15,899.02 while the NASDAQ declined 0.50 percent to 4,040.26. The S&P also fell, dropping 0.53 percent to 1,793.09.
Joy Global (NYSE: JOY) reported an 87% drop in fiscal fourth-quarter earnings. Joy Global projects full-year earnings of $3 to $3.50 per share on revenue of $3.6 billion to $3.8 billion. However, analysts were projecting earnings of $3.68 per share on revenue of $3.8 billion.
Joy Global's quarterly profit fell to $26.8 million, or $0.25 per share, from a year-ago profit of $212.6 million, or $1.99 per share. Excluding special items, it earned $1.11 per share. Its sales declined 35% to $1.18 billion. However, analysts were expecting earnings of $1.12 per share on sales of $1.12 billion.
Equities Trading UP
NorthStar Realty Finance (NYSE: NRF) shot up 17.29 percent to $11.66 after the company announced its plans to spin-off Asset Management Business into a separate publicly traded company.
Shares of Scripps Networks Interactive (NYSE: SNI) got a boost, shooting up 5.91 percent to $79.70 on a report from Variety that Discovery Communications, was considering a bid for the parent company of the Food Network, Travel Channel and HGTV.
Smith & Wesson Holding (NASDAQ: SWHC) was also up, gaining 6.44 percent to $12.90 after the company reported an upbeat Q2 profit.
Equities Trading DOWN
Shares of Avanir Pharmaceuticals (NASDAQ: AVNR) were down 14.92 percent to $3.65 after the company reported that phase II PRIME study of investigation drug AVP-923 did not meet primary efficacy endpoint. The company also reported a wider Q4 loss.
Laboratory Corp. of America Holdings (NYSE: LH) shares tumbled 7.34 percent to $91.87 after the company issued a weak 2014 profit guidance.
In commodity news, oil traded down 0.19 percent to $98.32, while gold traded down 0.13 percent to $1,259.50. Silver traded up 0.42 percent Wednesday to $20.40, while copper rose 0.49 percent to $3.28.
European shares were mostly higher today. The Spanish Ibex Index rose 0.16 percent, while Italy's FTSE MIB Index dropped 0.33 percent. Meanwhile, the German DAX gained 0.29 percent and the French CAC 40 surged 0.76 percent while U.K. shares rose 0.40 percent.
The MBA's index of mortgage application activity rose 1% in the week ended December 6, 2013. The Treasury is set to auction 10-year notes. The US Treasury monthly budget report for November will be released at 2:00 p.m. ET.
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