Mid-Day Market Update: Infoblox Rises On Upbeat Results; SeaDrill Shares Slide
Midway through trading Wednesday, the Dow traded down 0.09 percent to 17,798.95 while the NASDAQ gained 0.36 percent to 4,775.17. The S&P also rose, gaining 0.08 percent to 2,068.61.
Leading and Lagging Sectors
In trading on Wednesday, telecommunications services shares were relative leaders, up on the day by about 0.58 percent. Top gainers in the sector included CalAmp (NASDAQ: CAMP), up 3.4 percent, and BT Group plc (NYSE: BT), up 2.7 percent.
v Energy sector was the top decliner in the US market on Wednesday. Top losers in the sector included SeaDrill (NYSE: SDRL), Diamond Offshore Drilling (NYSE: DO), and Pacific Drilling S.A. (NYSE: PACD).
The Moline, Illinois-based company reported quarterly earnings of $649.2 million, or $1.83 per share, compared to $806.8 million, or $2.11 per share, in the year-ago quarter.
Its revenue declined 5 percent to $8.97 billion, while equipment sales slipped 7 percent. However, analysts were expecting earnings of $1.57 per share on revenue of $7.68 billion.
Equities Trading UP
Infoblox (NYSE: BLOX) shares shot up 5.39 percent to $17.80 after the company reported upbeat financial results for its first fiscal quarter.
Shares of Veeva Systems (NYSE: VEEV) got a boost, shooting up 9.64 percent to $31.62 after the company reported better-than-expected Q3 results and issued a strong Q4 forecast.
DreamWorks Animation SKG (NASDAQ: DWA) shares were also up, gaining 3.46 percent to $23.91. Analysts at Morgan Stanley upgraded Dreamworks from Equal-weight to Overweight and raised the price target from $22 to $27.
Equities Trading DOWN
Shares of SeaDrill (NYSE: SDRL) were down 21.13 percent to $16.33 on weak earnings and suspension of dividend.
Ctrip.com International (NASDAQ: CTRP) shares tumbled 10.66 percent to $52.23 after the company reported upbeat Q3 earnings, but issued a weak Q4 revenue forecast. Brean Capital lowered the price target on the stock from $74.00 to $64.00.
21Vianet Group (NASDAQ: VNET) was down, falling 7.08 percent to $19.29 after the company reported Q3 earnings of $0.04 per ADS on revenue of $126.80 million. Canaccord Genuity downgraded 21Vianet from Buy to Hold.
In commodity news, oil traded down 0.08 percent to $74.03, while gold traded down 0.08 percent to $1,196.80.
Silver traded up 0.02 percent Wednesday to $16.62, while copper fell 0.91 percent to $2.95.
European shares were mixed today. The eurozone’s STOXX 600 rose 0.03 percent, the Spanish Ibex Index dropped 0.48 percent, while Italy’s FTSE MIB Index slipped 0.36 percent. Meanwhile, the German DAX rose 0.55 percent and the French CAC 40 fell 0.17 percent while UK shares rose 0.07 percent.
The MBA reported that its index of mortgage application activity fell 4.30% in the week ended November 21, 2014.
US consumer spending rose 0.20 percent in October, versus economists’ expectations for a 0.40 percent growth.
Initial jobless claims rose 21,000 to 313,000 in the week ended November 22. However, economists were projecting claims to reach 287,000 in the week.
U.S. durable goods orders gained 0.40% in October, versus economists’ expectations for a 0.60 percent decline.
The Chicago PMI fell to 60.80 in November, versus a prior reading of 66.20. However, economists were expecting a reading of 63.10.
The final reading of Reuter's/University of Michigan's consumer sentiment index slipped to 88.80 in November, versus a prior reading of 89.40. However, economists were expecting a reading of 90.00.
Sales of new homes rose 0.7 percent to an annual rate of 458,000 in October. However, economists were estimating a rate of 471,000.
The pending home sales index declined 1.1 percent to 104.1 in October, from 105.3 in September.
U.S. crude inventories increased by 1.9 million barrels last week, according to the Energy Information Administration. However, analysts were expecting stocks to decline by 100,000 in the week.
Data on farm prices for November will be released at 3:00 p.m. ET.
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