Mid-Morning Market Update: Markets Open Higher; Best Buy Tops Q2 Views

Following the market opening Tuesday, the Dow traded up 2.25 percent to 16,229.02 while the NASDAQ climbed 3.04 percent to 4,663.86. The S&P also rose, gaining 2.42 percent to 1,939.06.

Leading and Lagging Sectors

In trading on Tuesday, technology shares were relative leaders, up on the day by about 3.05 percent. Meanwhile, top gainers in the sector included Alliance Fiber Optic Products Inc AFOP, up 13 percent, and Atmel Corporation ATML, up 13 percent.

Industrials shares rose by just 1.5 percent in Tuesday’s trading. Meanwhile, top losers in the sector included Layne Christensen Company LAYN, down 5 percent, and Career Education Corp. CECO, off 3 percent.

Top Headline

Best Buy Co Inc BBY reported stronger-than-expected results for its fiscal second quarter.

The Richfield, Minnesota-based company reported quarterly net income of $164 million, or $0.46 per share, up from $146 million, or $0.42 per share, in the year-ago period. Excluding non-recurring items, the company's adjusted earnings came in at $0.49 per share.

Its revenue surged to $8.53 billion from $8.46 billion. However, analysts were expecting a profit of $0.34 per share on revenue of $8.29 billion.

Equities Trading UP

Acorda Therapeutics Inc ACOR shares shot up 16 percent to $33.48 after the company reported that the Patent Trials and Appeal Board has denied both inter partes reviews of AMPYRA patents.

Shares of Best Buy Co Inc BBY got a boost, shooting up 14 percent to $33.28 after the company reported stronger-than-expected results for its fiscal second quarter.

China Information Technology, Inc. - Ordinary Shares CNIT shares were also up, gaining 13 percent to $1.44 after the company reported management changes.

Equities Trading DOWN

DSW Inc. DSW shares tumbled 7 percent to $28.65. DSW reported in-line earnings for the second quarter, but the company's sales missed analysts' estimates.

Shares of Daktronics, Inc. DAKT were down 9 percent to $10.02 after the company reported weak Q1 results.

Toll Brothers Inc TOL was down, falling 2 percent to $37.22 after the company reported lower earnings for its fiscal third quarter.

Commodities

In commodity news, oil traded up 2.67 percent to $39.26, while gold traded down 0.88 percent to $1,143.40.

Silver traded down 0.86 percent Tuesday to $14.67, while copper rose 0.96 percent to $2.27.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 gained 3.9 percent, the Spanish Ibex Index rose 3.3 percent, while Italy’s FTSE MIB Index surged 4.4 percent. Meanwhile, the German DAX jumped 4.35 percent, and the French CAC 40 gained 3.99 percent while UK shares rose 2.66 percent.

Economics

U.S. house prices increased 1 percent in June, according to the S&P Case-Shiller 20-city composite index.

The consumer confidence index rose to a reading of 101.5 in August, versus a revised reading of 91.0 in July, the Conference Board reported. However, economists were expecting the index to reach 94.0.

Sales of new US homes gained 5.4 percent to an annual rate of 507,000 in July. Economists were projecting an annual rate of 510,000.

The Richmond Fed manufacturing index slipped to -4.00 in August, versus a prior reading of 13. Economists were estimating a reading of 9.00.