Mid-Morning Market Update: Markets Mostly Lower; FactSet Research Issues Downbeat Forecast
Following the market opening Tuesday, the Dow traded up 0.05 percent to 15,892.47 while the NASDAQ declined 0.16 percent to 4,023.09. The S&P also fell, dropping 0.14 percent to 1,784.11.
FactSet Research Systems (NYSE: FDS) reported a 4.8% rise in its fiscal first-quarter profit and issued a weak earnings guidance for the current quarter.
FactSet Research expects current-quarter earnings of $1.20 to $1.23 per share, versus analysts' estimates of $1.25 per share. It expects revenue of $225 million to $228 million, versus analysts' estimates of $227 million.
FactSet Research's quarterly profit surged to $52.2 million, or $1.19 per share, from $49.8 million, or $1.11 per share, in the year-ago period. Excluding one-time items, its adjusted earnings came in at $1.22 per share. Its revenue climbed 5.6% to $223 million. The company had earlier expected earnings of $1.21 to $1.24 per share on revenue of $222 million to $225 million.
Shares of Frontier Communications (NASDAQ: FTR) got a boost, shooting up 9.55 percent to $4.82 after AT&T (NYSE: T) announced its plans to sell its Wireline Residential and Business Services and associated assets in Connecticut to Frontier for $2 billion in cash.
Hewlett-Packard Company (NYSE: HPQ) was also up, gaining 1.69 percent to $27.35 after JP Morgan upgraded the stock from Neutral to Overweight and lifted the price target from $30.00 to $35.00.
Kohlberg Kravis Roberts & Co LP (NYSE: KKR) was down, falling 5.10 percent to $23.80 after the company announced its plans to acquire KKR Financial Holdings in an all-stock deal.
In commodity news, oil traded up 0.21 percent to $97.68, while gold traded down 0.88 percent to $1,233.50.
Silver traded down 1.50 percent Tuesday to $19.80, while copper fell 0.06 percent to $3.33.
European shares were lower today. The Spanish Ibex Index dropped 0.31 percent, while Italy's FTSE MIB Index declined 0.51 percent. Meanwhile, the German DAX fell 0.20 percent and the French CAC 40 dipped 0.80 percent while U.K. shares tumbled 0.31 percent.
U.S. consumer prices came in flat in November, while the core CPI rose 0.2%. However, economists were projecting both the main CPI and core CPI to gain by 0.1%.
The U.S. current account deficit shrank to $94.8 billion in the third quarter, versus a downwardly revised $96.6 billion in the second quarter.
The ICSC-Goldman Sachs store sales index rose 4.8% in the week ended Saturday versus the earlier week.
The Johnson Redbook Retail Sales Index dropped 1.4% in the first two weeks of December versus November.
The NAHB housing market index rose to 58.00 in December, versus a prior reading of 54.00. However, economists were expecting a reading of 55.00.
The Federal Open Market Committee begins its 2-day meeting today.
The Treasury is set to auction 4-week bills and 2-year notes.
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