Mid-Morning Market Update: Markets Rise; Ford Profit Beats Estimates
Following the market opening Tuesday, the Dow traded up 0.68 percent to 15,945.00 while the NASDAQ surged 0.30 percent to 4,095.71. The S&P also rose, gaining 0.67 percent to 1,793.46.
Ford Motor Co (NYSE. F) reported a rise in its fourth-quarter profit. Ford's quarterly profit surged to $3.04 billion, or $0.74 per share, from a year-ago profit of $1.60 billion, or $0.40 per share. Its adjusted earnings came in at $0.31 per share. Its revenue surged to $37.6 billion versus $36.3 billion. However, analysts were expecting a profit of $0.28 per share on revenue of $34.96 billion. For 2014, Ford projects a pretax profit of $7 billion to $8 billion.
Equities Trading UP
Cliffs Natural Resources (NYSE: CLF) shot up 10.26 percent to $21.39 on confirmation of talks with shareholder Casablanca Capital.
Silicon Motion Technology (NASDAQ: SIMO) was also up, gaining 9.54 percent to $16.30 after the company reported upbeat Q4 results and issued strong FY14 revenue forecast.
Equities Trading DOWN
Shares of Rent-A-Center (NASDAQ: RCII) were down 19.83 percent to $25.03 on Q4 results.
Apple (NASDAQ: AAPL) shares tumbled 7.36 percent to $510.00 after the company issued weak sales forecast for the second quarter and reported downbeat holiday iPhone sales. Analysts at BGC Partners downgraded Apple from Buy to Hold.
In commodity news, oil traded up 1.06 percent to $96.73, while gold traded down 0.39 percent to $1,258.60.
Silver traded down 0.32 percent Tuesday to $19.73, while copper rose 0.18 percent to $3.27.
European shares were higher today.
The Spanish Ibex Index surged 1.04 percent, while Italy's FTSE MIB Index gained 0.39 percent.
Meanwhile, the German DAX climbed 0.32 percent and the French CAC 40 surged 0.49 percent while U.K. shares rose 0.24 percent.
The ICSC-Goldman same-store sales index rose 0.2% in the week ended Saturday versus the earlier week.
The Johnson Redbook Retail Sales Index declined 0.1% in the first three weeks of January versus December.
Orders for durable goods dropped 4.3% in December, versus economists' expectations for a 1.8% gain.
U.S. home prices declined 0.1% in November, according to the S&P/Case-Shiller home price index. However, the index gained 0.9% after seasonal adjustments. Home prices surged 13.7% y/y in November.
The Conference Board's consumer confidence index rose to 80.70 in January, versus a prior reading of 78.10. However, economists were expecting a reading of 78.00.
The Richmond Fed manufacturing index fell to 12.00 in January, from a previous reading of 13.00. However, economists were expecting a reading of 13.00.
The FOMC will begin its two-day policy meeting today.
The Treasury is set to auction 4-week bills and 2-year notes.
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