Mid-Day Market Update: General Motors November US Auto Sales Surge; Vince Holding Shares Slide

Midway through trading Tuesday, the Dow traded up 0.37 percent to 17,843.26 while the NASDAQ surged 0.56 percent to 4,753.96. The S&P also rose, gaining 0.47 percent to 2,063.11.

Leading and Lagging Sectors

On Tuesday, the energy sector proved to be a source of strength for the market. Leading the sector was strength from Callon Petroleum Company CPE and Energy XXI EXXI.

In trading on Tuesday, telecommunications services shares were relative laggards, down on the day by about 0.23 percent. Meanwhile, top losers in the sector included TELUS TU, down 3.7 percent, and SBA Communications SBAC, off 3 percent.

Top Headline

General Motors GM reported a 6.5% y/y rise in its US auto sales in November.
The company delivered 225,818 vehicles in the US in November. Analysts were expecting sales to rise around 3% in the month. Retail sales increased 5%, while fleet deliveries rose 11%.

Equities Trading UP

Spansion CODE shares shot up 24.11 percent to $28.36 after Cypress Semiconductor CY announced its plans to buy Spansion for $1.59 billion in stock.

Shares of Avanir Pharmaceuticals AVNR got a boost, shooting up 12.87 percent to $16.93 after the company agreed to be acquired by Otsuka Pharmaceutical for $17.00 per share in cash.

Cypress Semiconductor CY shares were also up, gaining 16.92 percent to $12.20 after the company announced its plans to buy Spansion CODE for $1.59 billion in stock. Analysts at Topeka Capital upgraded Cypress from Hold to Buy and raised the price target from $10.50 to $13.

Equities Trading DOWN

Vince Holding VNCE shares tumbled 13.34 percent to $31.65. Vince reported better-than-expected earnings for the third quarter.

Shares of Quidel QDEL were down 7.36 percent to $25.38 after the company announced a proposed offering of $150 million of convertible senior notes due 2020.

Strategic Hotels & Resorts BEE was down, falling 2.15 percent to $12.75 after the company priced 20 million shares for total estimated gross proceeds of $254 million.

Commodities

In commodity news, oil traded down 1.12 percent to $68.23, while gold traded down 1.65 percent to $1,198.00. Silver traded down 1.75 percent Tuesday to $16.40, while copper fell 0.71 percent to $2.88.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.43 percent, the Spanish Ibex Index gained 0.64 percent, while Italy’s FTSE MIB Index climbed 0.48 percent. Meanwhile, the German DAX declined 0.28 percent and the French CAC 40 jumped 0.20 percent while UK shares rose 1.15 percent.

Economics

The ICSC-Goldman Store Sales Index declined 1.8% in the week ended Saturday versus the earlier week.

The Johnson Redbook Retail Sales Index slipped 0.6% in the four weeks of November versus October.

US construction spending rose 1.10% in October, versus economists’ expectations for a 0.60% gain.

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Posted In: EarningsNewsGuidanceEurozoneFuturesCommoditiesM&AEcon #sIntraday UpdateMarkets
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