Mid-Morning Market Update: Markets Gain; FedEx Profit Beats Street View

Following the market opening Wednesday, the Dow traded up 0.15 percent to 17,156.85 while the NASDAQ surged 0.22 percent to 4,562.78. The S&P also rose, gaining 0.19 percent to 2,002.78.

Leading and Lagging Sectors

In trading on Wednesday, energy shares were relative leaders, up on the day by about 0.47 percent. Top gainers in the sector included Petróleo Brasileiro SA PBR, up 2.5 percent, and Trina Solar TSL, up 4.8 percent.

Non-cyclical consumer goods & services sector was the top decliner in the US market on Wednesday. Top losers in the sector included General Mills GIS, down 3.2 percent, and Unilever plc UL, off 2 percent.

Top Headline

FedEx FDX reported upbeat results for the fiscal first-quarter.

The Memphis, Tennessee-based company posted quarterly earnings of $606 million, or $2.10 per share, compared to $489 million, or $1.53 per share, in the year-ago quarter.

Its revenue gained 6% to $11.7 billion from $11.0 billion. However, analysts were expecting earnings of $1.94 per share on revenue of $11.47 billion.

Equities Trading UP

Auxilium Pharmaceuticals AUXL shares shot up 42.32 percent to $30.63 after the company received an unsolicited bid to be acquired for $28.10 per share from Endo International plc ENDP.

Shares of United States Steel X got a boost, shooting up 10.87 percent to $45.91 after the company reported strategic actions and issued a strong Q3 outlook.

Lennar LEN shares were also up, gaining 4.68 percent to $40.96 after the company reported better-than-expected fiscal third-quarter earnings.

Equities Trading DOWN

Shares of Rackspace Hosting RAX were down 15.76 percent to $33.14 after the company said it will remain independent despite "entertaining various proposals" from suitors.

Sony SNE shares tumbled 6.61 percent to $18.91 after the company’s CEO Kazuo Hirai said that the company would lower 15% of mobile unit staff in the fiscal year ending in March 2015. The company CEO also said the company is now revising mobile strategy.

Adobe Systems ADBE was down, falling 3.79 percent to $68.05 after the company issued a weak fiscal fourth-quarter forecast. Adobe reported its Q3 earnings of $0.28 per share on revenue of $1.01 billion.

Commodities

In commodity news, oil traded down 0.30 percent to $94.60, while gold traded up 0.06 percent to $1,237.50.

Silver traded down 0.33 percent Wednesday to $18.66, while copper fell 0.90 percent to $3.14.

Euro zone

European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.50 percent, the Spanish Ibex Index surged 1.01 percent, while Italy’s FTSE MIB Index jumped 1.18 percent. Meanwhile, the German DAX rose 0.39 percent and the French CAC 40 gained 0.59 percent while UK shares dropped 0.06 percent.

Economics

The MBA reported that its index of mortgage application activity rose 7.90% in the week ended September 12.

The consumer price index fell 0.2% in August, while the core CPI was unchanged in the month. However, economists were expecting consumer prices to remain unchanged in the month.

The US current account deficit shrank 3.8% to $98.50 billion in the second quarter, versus a revised $102.2 billion in the first quarter. However, economists were expecting current account deficit to reach $113.40 billion in the quarter.

The NAHB housing market index rose to 59.00 in September, versus a prior reading of 55.00. However, economists were expecting a reading of 56.00.

The Federal Open Market Committee will announce its policy decision at 2:00 p.m. ET, while the Fed Chairwoman Janet Yellen will hold a press conference at 2:30 p.m. ET.

Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceEurozoneFuturesCommoditiesM&ATop StoriesEconomicsMarketsConsumer DiscretionaryHomebuilding
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...