Mid-Afternoon Market Update: Brown-Forman Dips On Earnings Miss; GFI Group Shares Spike Higher

Toward the end of trading Wednesday, the Dow traded up 0.11 percent to 17,898.47 while the NASDAQ surged 0.37 percent to 4,773.39. The S&P also rose, gaining 0.27 percent to 2,072.15.

Leading and Lagging Sectors

On Wednesday, the basic materials sector proved to be a source of strength for the market. Leading the sector was strength from IAMGOLD IAG and Silver Standard Resources SSRI.

In trading on Wednesday, non-cyclical consumer goods & services shares were relative laggards, down on the day by about 0.57 percent. Meanwhile, top losers in the sector included Cadiz CDZI, down 4.6 percent, and Brown-Forman (NYSE: BF-B), off 4 percent.

Top Headline

Abercrombie & Fitch ANF reported a profit in the fiscal third quarter. However, the company’s revenue missed analysts’ estimates. The company also lowered its earnings forecast for the full year.

The New Albany, Ohio-based company posted quarterly net income of $18.2 million, or $0.25 per share, versus a year-ago net loss of $15.6 million, or $0.20 per share. Its adjusted earnings came in at $30.4 million, or $0.42 per share, versus a year-ago profit of $40.5 million, or $0.52 per share.

Its revenue declined 12% to $911 million, while same-store sales slipped 10%. However, analysts were expecting earnings of $0.41 per share on revenue of $918.29 million.

For the full-year, Abercrombie & Fitch now projects earnings of $1.50 to $1.65 per share, versus its earlier outlook of $2.15 to $2.35 per share. Analysts expected earnings of $1.74 per share. It expects Q4 comparable sales to decline by a mid-to-high single-digit percentage.
Equities Trading UP

G-III Apparel Group GIII shares shot up 13.74 percent to $95.95 after the company reported better-than-expected results for the third quarter and raised its full-year forecast.

Shares of GFI Group GFIG got a boost, shooting up 8.65 percent to $5.47 as CME Group CME lifted the takeover bid for the company to $5.25 per share.

Leidos Holdings LDOS shares were also up, gaining 6.82 percent to $42.92 after the company reported better-than-expected earnings for the third quarter.

Equities Trading DOWN

Puma Biotechnology PBYI shares tumbled 14.36 percent to $192.70 on delay in the NDA filing for PB272.

Shares of Bob Evans Farms BOBE were down 11.63 percent to $49.30 after the company reported better-than-expected earnings for the fiscal 2015 second quarter. However, the company’s revenue missed analysts’ estimates. Analysts at KeyBanc downgraded Bob Evans from Hold to Underweight.

Brown-Forman (NYSE: BF-B) was down, falling 3.68 percent to $92.47 after the company reported weaker-than-expected earnings for the second quarter and lowered its earnings forecast for the full year.

Commodities

In commodity news, oil traded up 0.34 percent to $67.11, while gold traded up 0.73 percent to $1,208.20.

Silver traded down 0.40 percent Wednesday to $16.39, while copper fell 0.81 percent to $2.87.

Eurozone

European shares closed mostly higher today. The eurozone’s STOXX 600 rose 0.57 percent, the Spanish Ibex Index gained 1.18 percent, while Italy’s FTSE MIB Index climbed 1 percent. Meanwhile, the German DAX rose 0.38 percent and the French CAC 40 rose 0.08 percent while UK shares fell 0.38 percent.

Economics

The MBA reported that its index of mortgage application activity dropped 7.30% in the week ended November 28, 2014.

Private-sector employers added 208,000 jobs in November, ADP reported. However, economists were projecting an addition of 223,000 jobs.

US productivity rose at a revised annual pace of 2.3% in the third quarter, versus a prior reading of a 2% growth.

The final reading of US Markit Services PMI fell to 56.20 in November, versus a prior reading of 56.30. However, economists were expecting a reading of 56.50.

The ISM non-manufacturing index surged to 59.30 in November, versus a prior reading of 57.10. However, economists were expecting a reading of 57.50.

U.S. crude-oil supplies slipped 3.7 million barrels for the week ended November 28, the Energy Information Administration reported. However, analysts were projecting crude inventories to gain by 380,000 barrels. Gasoline inventories increased 2.1 million barrels, while distillates supplies gained 3 million barrels.

The Federal Reserve released its latest Beige Book report.

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Posted In: EarningsNewsGuidanceEurozoneFuturesCommoditiesFDAEcon #sIntraday UpdateMarkets
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