Mid-Morning Market Update: Markets Open Higher; FedEx Q2 Earnings Miss Estimates
Following the market opening Wednesday, the Dow traded up 0.36 percent to 15,932.44 while the NASDAQ surged 0.05 percent to 4,025.49. The S&P also rose, gaining 0.20 percent to 1,784.52.
FedEx's quarterly profit surged to $500 million, or $1.57 per share, versus a year-ago profit of $438 million, or $1.39 per share.
Its revenue climbed 3% to $11.4 billion. However, analysts were estimating earnings of $1.64 per share on revenue of $11.44 billion. For the full year, FedEx now projects adjusted earnings growth of 8% to 14%, versus its earlier growth forecast of 7% to 13%.
DepoMed (NASDAQ: DEPO) was also up, gaining 5.75 percent to $8.83 after the company reported that it has acquired the US rights to CAMBIA® (diclofenac potassium for oral solution) from Nautilus Neurosciences for $48.7 million.
Equities Trading DOWN
Shares of Jabil Circuit (NYSE: JBL) were down 20.03 percent to $15.77 after the company reported downbeat fiscal first-quarter results and issued a weak outlook for its second quarter. Citigroup downgraded the stock from Neutral to Sell and lowered the target price from $24 to $14.
VeriFone Systems (NYSE: PAY) shares tumbled 7.12 percent to $23.22 after the company posted a loss in its fiscal fourth quarter and issued downbeat earnings forecast for the fiscal first quarter and full year.
In commodity news, oil traded up 0.12 percent to $97.34, while gold traded up 0.15 percent to $1,232.00.
Silver traded up 0.48 percent Wednesday to $19.94, while copper fell 0.20 percent to $3.32.
European shares were higher today. The Spanish Ibex Index gained 0.99 percent, while Italy's FTSE MIB Index climbed 1.09 percent. Meanwhile, the German DAX surged 1.12 percent and the French CAC 40 jumped 0.90 percent while U.K. shares gained 0.27 percent.
US housing starts jumped 22.7% to an adjusted annual rate of 1.09 million in November. However, economists were projecting housing starts to reach a rate of 955,000.
The MBA reported that its index of mortgage application activity declined 5.50% in the week ended December 13, 2013.
The Treasury is set to auction 5-year notes.
The FOMC will announce its policy decision at 2:00 p.m. ET, while Fed Chairman Ben Bernanke will hold press briefing at 2:30 p.m. ET.
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