Mid-Morning Market Update: Markets Open Higher; Pfizer Profit Tops Street View

Following the market opening Tuesday, the Dow traded up 0.32 percent to 16,872.39 while the NASDAQ jumped 0.94 percent to 4,528.14. The S&P also rose, gaining 0.51 percent to 1,971.66.

Leading and Lagging Sectors

Telecommunications services shares rose by 1.42 percent in today’s trading. Top gainers in the sector included China Telecom Corp. Ltd. CHA, up 5.3 percent, and 8x8 EGHT, up 3 percent.

In trading on Tuesday, healthcare shares were relative laggards, down on the day by about 0.04 percent. Top losers in the sector included Luminex LMNX, down 11.8 percent, and Sanofi SNY, off 10 percent.

Top Headline

Pfizer PFE reported better-than-expected earnings for the third quarter and narrowed its earnings forecast for the year.

The New York-based company reported a quarterly profit of $2.67 billion, or $0.42 per share, versus a year-ago profit of $2.59 billion, or $0.39 per share. Excluding certain items, the company’s earnings declined to $0.57 per share from $0.58 per share.

Its revenue fell 2.2% to $12.36 billion. However, analysts were expecting earnings of $0.55 per share on revenue of $12.24 billion.

Equities Trading UP

Receptos RCPT shares shot up 39.06 percent to $94.20 after the company announced positive Phase 2 results for TOUCHSTONE Trial of RPC1063 in Ulcerative Colitis.

Shares of VASCO Data Security International VDSI got a boost, shooting up 26.41 percent to $23.12 after the company posted a profit in the third quarter.

Integrated Device Technology IDTI shares were also up, gaining 16.17 percent to $16.31 after the company reported better-than-expected quarterly earnings.

Equities Trading DOWN

Shares of Amkor Technology AMKR were down 15.62 percent to $6.32 after the company reported weaker-than-expected Q3 results and issued a downbeat Q4 forecast.

Twitter TWTR shares tumbled 13.20 percent to $42.15. Twitter met Wall Street's earnings expectations. The company issued a weak revenue forecast for the fourth quarter. In the latest period, Twitter's user base grew 23% to 284 million. Analysts at Nomura downgraded Twitter from Buy to Neutral and lowered the price target from $55.00 to $45.00.

Kohl's KSS was down, falling 7.62 percent to $54.09 after the company issued a weak guidance on Monday. The company projected comparable sales to drop by 1.4% in the third quarter. It also expected 2014 diluted earnings on an EPS basis to be at the low end of previous forecast.

Commodities

In commodity news, oil traded up 0.01 percent to $81.01, while gold traded up 0.16 percent to $1,231.30.

Silver traded up 0.75 percent Tuesday to $17.29, while copper rose 0.60 percent to $3.08.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 rose 0.93 percent, the Spanish Ibex Index climbed 1.95 percent, while Italy’s FTSE MIB Index jumped 1.93 percent. Meanwhile, the German DAX climbed 1.56 percent and the French CAC 40 surged 0.65 percent while UK shares gained 0.58 percent.

Economics

U.S. durable goods orders dropped 1.3% in September, versus economists’ expectations for a 0.2% gain.

U.S. home prices rose 0.2% in August, versus a 0.6% gain in July, according to S&P/Case-Shiller's index.

The Conference Board's consumer confidence index climbed to a reading of 94.5 in October, versus 89 in September. However, economists were projecting a reading of 87.3.

The Federal Open Market Committee begins its 2-day meeting today.