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.

Top Headline
FedEx FDX reported a downbeat fiscal second-quarter profit.

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%.

Equities Trading UP

Valassis Communications

VCI

shot up 21.24 percent to $34.31 after the company

agreed to be acquired

by Harland Clarke Holdings Corp for $34.04 per share in cash.

Shares of Lennar LEN got a boost, shooting up 4.97 percent to $36.95 after the company reported a rise in its fiscal fourth-quarter profit.

DepoMed

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 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

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.

General Mills GIS was down, falling 2.19 percent to $48.49 after the company reported downbeat Q2 profit.

Commodities

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.

Eurozone

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.

Economics
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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