Mid-Morning Market Update: Markets Open Higher; Abercrombie & Fitch Beats Q2 Estimates

Following the market opening Wednesday, the Dow traded up 1.86 percent to 15,957.87 while the NASDAQ climbed 1.95 percent to 4,594.19. The S&P also rose, gaining 1.88 percent to 1,902.66.

Leading and Lagging Sectors

In trading on Wednesday, technology shares were relative leaders, up on the day by about 2.39 percent. Meanwhile, top gainers in the sector included Advantest Corp (ADR) ATE, up 6 percent, and Servicesource International Inc SREV, up 6 percent.

Utilities shares rose by just 0.7 percent in Wednesday’s trading. Meanwhile, top losers in the sector included Pure Cycle Corporation PCYO, down 5 percent, and Exterran Partners, L.P. EXLP, off 2 percent.

Top Headline

Abercrombie & Fitch Co. ANF reported upbeat results for the second quarter on Wednesday.

The New Albany, Ohio-based company posted a quarterly net loss of $0.8 million, or $0.01 per share, versus a year-ago profit of $12.9 million, or $0.17 per share. Excluding certain items, Abercrombie & Fitch’s earnings came in at $0.12 per share in the latest quarter, versus net income of $0.19 per share in the year-ago quarter.

Its sales declined 8 percent to $817.8 million. However, analysts were projecting a loss of $0.04 per share on revenue of $811.5 million.

Equities Trading UP

Cameron International Corporation CAM shares shot up 43 percent to $60.80 after the company agreed to be acquired by Schlumberger Limited. SLB for $66.36 per share.

Shares of Cellcom Israel Ltd. CEL got a boost, shooting up 17 percent to $6.84 after the company reported a 5 year loan agreement of NIS 140 million at 4.9 percent.

Abercrombie & Fitch Co. ANF shares were also up, gaining 13 percent to $19.52 after the company reported upbeat results for the second quarter.

Equities Trading DOWN

Aerohive Networks Inc HIVE shares tumbled 12 percent to $6.03. Bank of America downgraded Aerohive Networks from Buy to Underperform and lowered the price target from $9.00 to $7.00.

Shares of Century Aluminum Co CENX were down 10 percent to $4.18. Century Aluminum issued a notice to employees at Hawesville, Kentucky smelter of its intent to curtail plant operations.

Schlumberger Limited. SLB was down, falling 4 percent to $69.67 after the company announced its plans to acquire Cameron International Corporation CAM in a $14.8 billion deal.

Commodities

In commodity news, oil traded down 0.28 percent to $39.20, while gold traded down 1.18 percent to $1,124.90.

Silver traded down 3.08 percent Wednesday to $14.20, while copper fell 2.41 percent to $2.25.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.01 percent, the Spanish Ibex Index rose 0.07 percent, while Italy’s FTSE MIB Index surged 0.60 percent. Meanwhile, the German DAX jumped 0.04 percent, and the French CAC 40 gained 0.23 percent while UK shares rose 0.08 percent.

Economics

Durable-goods orders increased 2 percent in July, versus a 4.1 percent growth in June.