Mid-Morning Market Update: Markets Open Higher; Lennar Tops Q3 Views

Following the market opening Monday, the Dow traded up 0.63 percent to 16,488.07 while the NASDAQ climbed 0.65 percent to 4,858.57. The S&P also rose, gaining 0.56 percent to 1,969.05.

Leading and Lagging Sectors

In trading on Monday, telecommunications services shares rose by 0.76 percent. Top gainers in the sector included Internet Gold Golden Lines Ltd IGLD, up 7 percent, and Shenandoah Telecommunications Company SHEN, up 4 percent.

In trading on Monday, basic materials shares were relative laggards, down on the day by about 0.03 percent. Meanwhile, top losers in the sector included HORSEHEAD HOLDING CORP. ZINC, down 5 percent, and Compania de Minas Buenaventura SAA (ADR) BVN, off 3 percent.

Top Headline

Lennar Corporation LEN reported stronger-than-expected results for its fiscal third quarter on Monday.

The Miami, Florida-based company reported a quarterly profit of $223 million, or $0.96 per share, versus a year-ago profit of $177.8 million, or $0.78 per share.

Its revenue rose 24 percent to $2.49 billion. However, analysts were expecting earnings of $0.79 per share on revenue of $2.42 billion.

Equities Trading UP

Atmel Corporation ATML shares shot up 15 percent to $8.33 after Dialog Semiconductor Plc DLGNF announced its plans to acquire Atmel for around $4.6 billion.

Shares of CytRx Corporation CYTR got a boost, shooting up 7 percent to $3.05 after the company reported the publication of its positive global Phase 2b clinical trial results for soft tissue sarcoma in the peer-reviewed JAMA Oncology.

Allot Communications Ltd ALLT shares were also up, gaining 5 percent to $5.15 after the company reported that it has received an $8 million expansion order from a tier-1 operator.

Equities Trading DOWN

Tribune Publishing Co TPUB shares tumbled 23 percent to $8.19 after the company lowered its FY15 revenue and adjusted EBITDA outlook.

Shares of Can Fite Biopharma Ltd (ADR) CANF were down 10 percent to $4.41 following announcement of a $9 million registered direct offering.

ImmunoGen, Inc. IMGN was down, falling 10 percent to $13.20. Morgan Stanley downgraded Immunogen from Equal-weight to Underweight and lowered the price target from $10.00 to $9.00.

Commodities

In commodity news, oil traded up 2.57 percent to $45.83, while gold traded down 0.49 percent to $1,132.20.

Silver traded down 0.12 percent Monday to $15.15, while copper rose 0.59 percent to $2.40.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 jumped 1.14 percent, the Spanish Ibex Index rose 0.32 percent, while Italy’s FTSE MIB Index climbed 1.02 percent. Meanwhile, the German DAX gained 0.31 percent, and the French CAC 40 jumped 1.29 percent, while U.K. shares rose 0.76 percent.

Economics

Sales of existing U.S. homes declined 4.8 percent to an annual pace of 5.31 million in August. However, economists were projecting sales to decline to a rate of 5.52 million.